Temporary Work (Skilled) Visa - Standard Business Sponsorship (Subclass 457)

TEMPORARY Work (skilled) visa  - sbs - Subclass 457


About this Visa:

This is a temporary residence visa requiring sponsorship by an employer. This employer can be an Australian or an overseas business. The visa can be granted for three months through to four years. There is a three stage process for the 457 visa subclass:

1.     Employer must apply to be an approved sponsor. This sponsorship lasts 3 years.

2.     Employer nominates a skilled position.

3.     Employee applies for a visa for the nominated position.

The application is dependent on the sponsor, the position and the employee (main applicant) meeting eligibility criteria. Secondary applicants can be included in the application; however the employer must undertake the same obligations. The applicant can be either onshore or offshore when the application is lodged and/or granted but this depends on if the employer is Australian or based offshore. If the applicant was onshore when the visa application was made, generally they have review rights; otherwise there are no review rights for the applicant. The employer, however, has review rights irrelevant of whether the visa was lodged onshore or offshore.

Employer Eligibility

1.     The employer must be actively and lawfully operating a business in Australia.

2.     The employer must be able to demonstrate that, by sponsoring a migrant worker as opposed to a local Australian worker, there is a benefit to Australia.

3.     There also must be a benefit to the company for such approval.

4.     The employer must demonstrate that they have a training record for local employees. There are training benchmarks to be met.

5.     The employer must demonstrate that it is a financially viable organisation capable of sustaining the employment of its current employees and any sponsored workers for the term of the visa. Basically, it must show its ability to meet the sponsorship obligations.

6.     The sponsor must be the direct employer (or related entity) of the nominated employee. They cannot be subcontracted out to another employer (See  Labour Agreement)

7.     Employer must have complied with previous nomination and sponsorship obligations.

8.     It is the employer's responsibility to ensure the visa applicant has or can obtain the relevant registrations and licensing for performing the nominated occupation while in Australia.


Nominated Skilled Position

1.     The nominated occupation must be on a specified list of 457 occupations. This is slightly broader than the Skilled Occupation List (SOL).

2.     A minimum salary level (MSL) is required to be paid for the position. On 14th September 2009 DIAC introduced the Temporary Skilled Migration Income Threshold (TSMIT). Effectively there is a TSMIT, or market rate, determined for each occupation, and the nominated position must be above this threshold. In the event where the market rate for the position is lower than the TSMIT but the employer is willing to pay above the market rate, it is likely the visa will be refused. The onus is on the employer to demonstrate that a market rate is being paid to the employee, effectively the same rate of pay for someone in the same position.

3.     Labour market testing (LMT) in the Subclass 457 programme was introduced by the Migration Amendment (Temporary Sponsored Visas) Act 2013 and commences on 23 November 2013. Standard business sponsors are required to test the local labour market prior to lodging a nomination and must provide information with their nomination about their attempts to recruit Australian workers and how they have determined on the basis of these attempts that there is no suitably qualified and experienced Australians to fill the position.

Employee Eligibility for the Nominated Skilled Position

4.     The main applicant must demonstrate they have the required skills (personal, employment experience, educational) for the nominated position.

5.     The main applicant must have an IELTS score of 5.0 in each of the four components. This may be exempt in some cases.

6.     All applicants must meet health, character, public interest and special return criteria.

7.     The employer sponsorship (SBS) and the position nomination must have been approved at the time of the decision. However, all three stages may be lodged at the same time.


8.     This is a temporary residence (TR) visa valid for between three months and four years. It allows for multiple travel for the duration. Condition 8107 (work limitation), is a mandatory condition imposed on this visa subclass, and basically states that the visa holder must work for the sponsoring employer for the duration of the visa. There may be other conditions imposed.
There are obligations imposed on the employer and you can view these from the DIBP factsheet.

Independent Migration


Employer Nomination


State/Territory Government Nomination

Not required.

Family/Relative Sponsorship

Not required.

Permanent Migration Pathway

This is a temporary residence (TR) visa. While on a Temporary Business Long Stay (Subclass 457) it may be possible to apply for other visas if eligible criteria are met. These include:

1.     Another Business Long Stay Subclass 457 - (Temporary Residence)

2.     Skilled Independent Subclass 189 - (Permanent Residence)

3.     Skilled Sponsored Subclass 190  - (Permanent Residence)

4.     Skilled Provisional Visa Subclass 489 - (3 Year Provisional Visa)

5.     Employer Nomination Scheme - ENS Subclass 186 - (Permanent Residence)

6.     Regional Sponsored Migration Scheme Subclass 187 - (Permanent Residence)

Range of Student Visas (Temporary Residence)


Provided by:
Fred Molloy, Registered Migration Agent (MARN: 0853698)
Konnecting – Australian Skilled Migration & Recruitment Consultants

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