Updates on 457 Visa Programme

Updates on 457 Visa Programme

 

The 457 visa policy supports Australian businesses employing skilled overseas workers to fill vacancies for short durations of time (3 months to 4 years). The program also ensures 457 workers are placed in good working conditions and are only employed when local workforce cannot fill the shortage.  The goal of the visa policy is to supplement for the Australian manpower.

New 457Sponsorship Accreditation Process

New sponsorship accreditation arrangements by the Department of Immigration and Border Protection (DIBP)was released on 1 July 2016. The 457 sponsorship for Accredited Sponsors is valid for 6 years. Once accredited sponsorship is approved, the visa and nomination applications will receive priority processing.   Initial assessment takes place in 5 working days only compared to 40+ days for non-accredited sponsors. Moreover, less supporting documentation is needed and the  possible decision can be made during the initial assessment.

To be qualified for accredited sponsorship, the sponsor must:

1.              Be a government agency, publicly-listed or private company with at least $4 million annual turnovers for the                           last three years;

2.              Has an active 457 visa sponsorship for at least 3 years. Break should be less than 6-months in the past 36                             months, without warnings or sanctions;

3.              Have at least ten457 nominations approved in the 24 months;

4.              Have submitted an agreed level of decision-ready applications for the past two years;

5.              Be less than 3% non-approval rate for the past three years;

6.              Have75% Australian staff in the workplace;

7.              Engage all 457 holders as employees under a written contract of employment;

8.              Provide the Department with a copy of the template contract (or letter) that they use;

9.              Make sure all Australian employees' salaries should comply with Enterprise Agreement or current market                              pay rates;

10.          Disclose all business operations. This includes the following

  • Profit/loss statements
  • BAS (Business activity statements
  • Annual reports
  • Detailed information about the Principals and/or Directors
  • Current/historical extract from ASIC (Australian Securities and Investments Commission)

Risk Factors in 457 Nomination Rejection

On the other hand, an application can be rejected if DIBP assesses the position was only created to secure a migration outcome.

DIBP considers the following factors in evaluating the authenticity of the position nominated:

1.              The nominee is related or considered a personal associate of an officer sponsoring the business;

2.              The nominee is a director or owns the sponsoring business;

3.              The immigration history hints on the main motive of the nominee is to stay in Australia for any type of visa;

4.              Business is operating for a very short period of time;

5.              Salary is either significantly higher or lower than industry standards;

6.              Business has relatively small turnover, which could mean difficulty in supporting a number of employees;

7.              Proof that nominee was paying the business to lodge the nomination

In addition, DIBP also considers whether the duties of the position matches with those duties of the nominated occupation as indicated on ANZSCO (Australian and New Zealand Standard Classification of Occupations). The evaluation takes into account whether the nominee will actually perform the duties listed and whether the business context is pertinent including the location where the nominee will work, position in the organisation structure, proposed duties and duties performed by current workers of the business.

Another thing that DIBP regards is whether the position nominated reflects the nature of the business. DIBP looks where there is an overlap between the positions being created or tasks are misaligned. DIBP also finds remarkable inconsistencies which indicate the nominee is unlikely to perform duties specified due to the business' range of activities or size/turnover rate. 

 

Amendments to the 457 Visa programme streamlines the process of skilled manpower migration. Furthermore, the update also limits the influx of unwanted overseas workers competing with Australian employees.

For more information on either migrating to Australia or recruiting staff from overseas, call us at 1300 131 131 or send us an email at recruit@konnecting.com

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