457 program under review


Author: Craddock Murray Neumann Lawyers

Publish Date: Jul 02, 2008

Immigration Minister Chris Evans has released a discussion paper seeking stakeholder feedback on proposed reforms to the 457-visa program, which he says will help prevent the exploitation of temporary skilled foreign workers.

The paper canvasses a range of proposals that focus on four main areas:

  • Redefining sponsorship obligations for 457 visas and create a uniform sponsorship framework for all sponsors;
  • Expanding powers to monitor and investigate possible non-compliance with the framework;
  • Enhancing measures to address identified breaches of obligations; and
  • Improving information sharing between government agencies at all levels.

A key proposal is the appointment of specially appointed officers with investigative powers to enter and search workplaces to determine whether employers are complying with their sponsorship obligations. According to Mr Evans, powers would be similar to those currently held by the Workplace Ombudsman.

Sponsors would be required to keep records of their compliance with obligations and notify officials of the Department of certain changes in circumstance within a prescribed period, such as change of business address, business registration, the appointment of administrators and the cessation of visa holders’ employment or activities with the sponsor. Officers could then request such information be supplied within a prescribed timeframe.

Penalties would be extended to enable the department to publish the names of employers found to be in breach of their obligations where non-compliances have not been remedied or for repeat offenders.

Investigations would be assisted by legislative amendments that would allow the department to share and receive information with other government agencies where that is currently not possible. This includes the Australian Taxation Office in relation to whether a visa holder is being paid the correct amount.

Other proposals include requiring sponsors to:

  • not use overseas workers as a means of strike-breaking;
  • pay income protection insurance;
  • pay travel costs to (and from) Australia;
  • pay the costs associated with recruitment and/or migration agent services;
  • pay costs associated with licensing and registration or similar;
  • pay certain medical costs or to pay for health insurance; and
  • pay education costs for certain minors.

Further, the proposals include an obligation that would make sponsors liable to pay the costs of locating, detaining, removing or processing the protection visa applications of visa holders, up to a certain prescribed limit. The Commonwealth would bear any cost over and above that amount. Currently, the prescribed limit for location and detention costs is $10,000.

Senator Evans has stressed that many of the proposals “are simply options and should not be interpreted as a complete list of obligations which would otherwise be imposed.” The Minister said stakeholder feedback would be considered in drafting the Bill and associated regulations, which form part of a broad range of reforms.

The consultation coincides with an investigation by Industrial Relations Commissioner Barbara Deegan in response to concerns about the exploitation of migrant workers, salary levels and English language requirements in order to improve the integrity of the scheme. Ms Deegan is due to present her report in October and the Government has supported the findings of other recent reviews.

However, the results of that report will not be incorporated into the Ministers’ proposed reforms. Senator Evans will present the Government’s response to the consultation when he introduces amendments to the Migration Act in September.

For more information, visit the Senator Evans’ Ministerial website.


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