This is the most commonly used program for employers to sponsor overseas workers to work in Australia on a temporary basis. From 14 September 2009, under the Subclass 457 visa program, there are no special arrangements for employers in regional areas across Australia.
Employers can be either:
- Australian businesses or
- overseas businesses.
What does this visa let me do?
With this visa you can employ overseas workers for a period of between one day and four years.
With this visa those people you employ from overseas can:
• Work in Australia for a period of between one day and four (4) years;
• Bring any eligible secondary applicants with them to Australia – secondary applicants can work and study;
• After entering Australia, have no limit on the number of times they travel in and out of Australia.
MARKET SALARY RATES
INCOME THRESHOLD
VALIDITY
EMPLOYER ELIGIBILITY
TRAINING BENCHMARK
NOMINATION ELIGIBILITY
EMPLOYER OBLIGATIONS
EMPLOYEE ELIGIBILITY
Subclass 457 – Market Salary Rates
For 457 sponsors who are standard business sponsors, the obligation to ensure equivalent terms and conditions of employment will mean that they pay their overseas workers market salary rates.
For current Subclass 457 visa holders, transitional arrangements will apply.
Sponsors who are parties to approved labour agreements must pay their overseas workers in accordance with the terms of the labour agreements. For further information regarding labour agreements please contact the Labour Agreement Section located at the department's National Office.
Market salary rates arrangements mean that Subclass 457 visa holders will benefit from the same terms and conditions of employment as are provided to an equivalent Australian undertaking equivalent work in the same workplace at the same location.
Where there is an equivalent Australian in the workplace, the market salary rate will be determined by the industrial arrangements that apply to this worker.
Examples of these industrial arrangements include: Collective agreement, award, award conditions with over award salary rates, common law contract.
Where there is no Australian performing equivalent work in the same workplace, the employer may demonstrate the market rate by reference to the applicable modern award or collective agreement. In absence of an award of collective agreement the employer is to provide a range of evidence to substantiate the market salary rate.
The evidence could include remuneration surveys, published earnings data or evidence of what employees are paid in similar workplaces. The employer will have to satisfy the department that the proposed terms and conditions of employment were appropriate for that location and industry.
Example: If the market salary rate for an occupation is $39 500 – that is, the market salary rate amount that is paid to an equivalent Australian in the sponsor's workplace – then the nomination is likely to be refused, as the market salary rate is below the TSMIT.
Even if the sponsor decided to offer the nominated worker a salary of $47 480, then the nomination would still be refused, as it is the market salary rate that the department compares to TSMIT, not the actual salary proposed.
The Temporary Skilled Migration Income Threshold – currently $47 480 per annum
Where the nominated salary is above $180 000 (which equates to the threshold for the top personal income tax rate), Subclass 457 nomination applications are not required to provide evidence that this salary is set according to a market salary rate.
Validity periods
The validity period of the:
• sponsorship is 3 years
• nomination is 12 months
visa is between one day and four years.
Employer Eligibility
Domestic business sponsors.
If you are an employer with a business that operates in Australia, you must meet benchmarks relating to the training of Australian citizens and permanent residents.
Overseas business sponsors
If you are an employer with a business that has no formal operating base or representation in Australia, you may apply to bring employees to Australia to do one of the following:
• Establish a business operation in Australia.
• Fulfill obligations for a contract or other business activity in Australia.
Note: Overseas Business Sponsors do not need to be operating in Australia but may need to meet other employer eligibility requirements.
Employing local labour and non-discriminatory employment practices From 27 June 2009, there has been a requirement for sponsors under subclass 457-visa program to attest that they have a strong record of, or a demonstrated commitment to:
• Employing local labour
and
• Non-discriminatory employment practices.
• No adverse information
To meet this requirement, there must be nothing-adverse known about the business.
Adverse information includes the conviction, finding of non-compliance, administrative action, investigation, legal proceedings or insolvency. Adverse information is relevant to a person's suitability as an approved sponsor, when it occurred within the previous three years.
Training benchmarks
Applicants who apply for approval as sponsors under the subclass 457 visa program must demonstrate their contribution and commitment to the training of Australians by providing evidence of meeting the training benchmarks.
Applicants who apply for approval as sponsors under the subclass 457 visa program must demonstrate their contribution and commitment to the training of Australians by providing evidence of meeting the training benchmarks.
Applicants can meet Training Benchmark A by paying the equivalent of at least two per cent of recent payroll expenditure to an industry training fund. The industry training fund must operate in an industry related to the applicant’s business.
Where there is no industry training fund operating in the same sector as the applicant for approval, the applicant can show evidence of having made a contribution to a recognised scholarship fund that supports education or training for Australian citizens or permanent residents in a university or TAFE course related to the business of the applicant.
To meet Training Benchmark B, applicants must provide evidence of spending the equivalent of one per cent of payroll on training for their employees who are Australian citizens or permanent residents.
Nomination Eligibility
Employer requirements
To nominate a position you must:
• Have been approved as a business sponsor or
• Have already lodged an application to become an approved business sponsor or
• Lodge an application to become a business sponsor at the same time that you lodge the nomination application.
Position requirements
A nominated position must be in:
- Your business or related business;
- Relation to an approved occupation.
Approved occupations.
There is a list of approved occupations - check this list to ensure that your nominated position matches one of the occupations on the list.
Occupations for Nominations for Subclass 457 – Business (Long Stay) and Subclass 442 Occupational Trainee Visas – June 2010
EMPLOYER OBLIGATIONS
 Obligation to cooperate with inspectors
Obligation to ensure equivalent terms and conditions of employment
Obligation to pay travel costs to enable sponsored persons to leave Australia
Obligation to pay costs incurred by Commonwealth to locate and remove unlawful noncitizen.
Obligation to keep records.
Obligation to provide records and information to the Minister
Obligation to provide information to Immigration when certain events occur
Obligation to ensure primary sponsored person does not work in an occupation other than an approved occupation.
Obligation not to recover certain costs from a primary sponsored person or secondary sponsored person.
Employee Eligibility
As an employee, you must meet all of the following requirements:
√ Be sponsored by an employer to fill a nominated position.
√ Have skills, qualifications, experience and an employment background which match those required for the position.
√ Demonstrated English language proficiency i.e. test score of at least 5 in each of the four test components of speaking, reading, writing and listening.
√ Be eligible for any relevant licenses or registration required for the nominated position. See list of approve occupation.
√ You can apply for this visa while you are in Australia, only if the last visa you held is not a Transit visa (Subclass 771) or a Special Purpose visa.
Health requirements.
There are a number of health requirements that must be met by health industry workers and their accompanying family members.
Health Insurance Requirements.
Subclass 457 visa holders granted visas after 14 September 2009 will be required to maintain arrangements for health insurance.
Character Requirements.
You must meet all character requirements.
Skills Assessment
Australia requires visa applicants to have the skills required for their nominated positions. Where necessary for safety or to prevent fraud, Australia will undertake more extensive skills assessments to confirm skills claimed by applicants.
Australia requires formal skills assessments of some trade occupations. This arrangement commenced on 1 July 2009 and will be extended as capacities are increased.
457 visa applicans from the nominated countries applying for a 457 visa in one of the nominated trade occupations listed below must have a formal skills assessment to determine if they have the required skills and experience to work as a skilled tradesperson in Australia.
Nominated countries
• Brazil
• China
• Fiji
• India
• Papua New Guinea
• Philippines
• South Africa
• Thailand
• Vietnam
• Zimbabwe
Nominated trade occupations
• Automotive Electrician [321111]
• Baker [351111]
• Cabinetmaker [394111]
• Carpenter [331212]
• Carpenter and Joiner [331211]
• Chef [351311]
• Cook [351411]
• Diesel Motor Mechanic [321212]#
• Driller [712211]
• Electrician (General) [341111]
• Electrician (Special Class) [341112]
• Fitter (General) [323211]
• Fitter and Turner [323212)
• Vehicle Painter [324311]
• Fitter-Welder [323213]
• Joiner [331213]
• Metal Fabricator [322311]
• Metal Machinist (First Class) [323214]
• Motorcycle Mechanic [321213]
• Motor Mechanic (General) [321211]
• Panel Beater [324111]
• Pastrycooks [351112]
• Pressure Welder [322312]
• Sheetmetal Trades Worker [322211]
• Small Engine Mechanic [321214]
• Toolmaker [323412]
• Vehicle Body Builder [324211]
• Welder (First Class) [322313]
Australian Values Statement
If you are aged 18 years or over, you must declare that you will respect Australian values and obey the laws of Australia. For this visa, the values statement is included in the general declaration section of the application form. When you sign the application form it means you will also be signing the values statement. You will not be required to have read the Life in Australia book, but may do so if you wish.
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