457 Visas – Recent Changes

Wednesday 10^th June 2009

As the economy continues to experience a decline in growth, the Australian Immigration Department moved quickly to alter the criteria required for Australian businesses to sponsor overseas workers on the 457 visa.

Since early February 2009, the Minister for Immigration, Senator Evans, has introduced a range of measures with the specific aim of protecting Australian jobs. Much of what has been introduced is a direct result of the Deegan Report, which was released late last year.

Australian businesses making their first application and those who have existing sponsorships, will both need to meet the requirements and provide evidence of the need to nominate skilled labour from overseas.

Although these new measures are now in place, the Government still recognizes that significant skill gaps remain, within the Australian Labour market. As such, the 457 visa program remains a viable option for Australian business to fill their shorter term labour and skill needs. However, planning a suitable strategy is vital for success.

Following is an overview of the changes, as published by the Department of Immigration and Citizenship (DIAC):

1. The indexation of the minimum salary level (MSL) for all new and existing 457 visa holders by 4.1% on 1 July 2009, in line with all employees' total earnings last year as reported by the ABS. This ensures that the wages of overseas workers keep pace with local wages.
2. The implementation of a market based minimum salary for all new and existing 457 visa holders from mid September 2009, to ensure overseas workers are not exploited and local wages and conditions are not undermined (a key recommendation of the Deegan Review).
3. Increasing the existing minimum language requirement from 4.5 IELTS to 5 IELTS for 457 visa applicants in trade occupations and chefs, to address concerns about the exploitation of workers from non-English speaking countries and align the 457 visa English language standard with the permanent sponsored visa for trades' occupations.
4. Progressively introducing formal skills assessment from 1 July 2009 for 457 visa applicants from high risk immigration countries in trade occupations and chefs. The Government will consult with stakeholders in finalising an assessment framework that reflects Australian standards and meets the expectations of Australian workplaces.
5. Introducing a requirement that employers seeking access to the 457 visa program have a strong record of, or demonstrated commitment to, employing local labour and non-discriminatory employment practices. This will help address concerns that some employers may discriminate against local labour in hiring overseas workers.
6. The development of training benchmarks to clarify the existing requirement on employers to demonstrate a commitment to training local labour.
7. The extension of the labour agreement pathway to all ASCO 5 - 7 occupations, to ensure that employers using the 457 visa program to access these occupations satisfy obligations on local training and employment.

While these changes may seem onerous, a properly constructed submission to DIAC will overcome many of these hurdles, opening up your overseas recruitment opportunities.

Our team of professional Migration Agents understand these new requirements and have successfully lodged numerous applications, on behalf of Australian Business clients.

Please call Life Relocation for a no obligation consultation on 03 9038 9039.