Changes to the 457 Visa


Author: Craddock Murray Neumann Lawyers

Publish Date: Jun 01, 2007

The Australian Government has committed an additional $85.3 million over the next four years to maintain the 457 visas scheme. The Government has stated this initiative is a response to low unemployment and the temporary shortage of skilled workers in some Australian industries, such as the aged-care, resources and IT industries. The Government will also introduce new civil penalties under the Migration Act 1958  for organisations that breach sponsorship obligations. The $85.3 million for improved policing of the 457 visa program will be delivered over four years, and will be administered through the  Department of Immigration and Citizenship, the Department of Employment and Workplace Relations, the Office of Workplace Services the Department of Education, Science and Training and the Australian Taxation Office.

What is the 457 Visa?

The 457 visa is designed for employers who would like to employ overseas workers to fill nominated skilled positions in Australia. Under the Migration Act 1958, employers can employ overseas workers for a period of between three months and four years, and 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. A minimum skill level applies to all postitons to be filled under the 457 visa, and there are four major occupation groups – managers and administrators,  professionals, associate professionals, tradespersons and related workers.

If the visa application for a temporary visa is approved, employment is subject to visa requirement  8107, which means the employee must not:

  • Cease working for the employer who sponsored them (that is, become unemployed or change employer)
  • work in a different position other than the position that was nominated in the visa application
  • work for another person or for themselves while working for the sponsor.
  • If an employee wishes to change employer, a new sponsorship and visa application will be required.

Under the new Government initiative, employers will be better educated to ensure they meet 457 sponsorship requirements. Employer compliance will also be targeted to ensure that the small numbers of employers who intentionally misuse the system are investigated and face significant penalties for any breaches of the system. The Migration Act 1958 will be amended to ensure employers of skilled temporary overseas workers (457 visas) face tougher penalties if they breach their sponsorship obligations, and new civil penalties will apply, including fines for those employers who commit the most serious offences. These offences will relate to such matters as failure to pay the minimum salary level and using workers in unskilled jobs.

The Department of Immigration and Citizenship will also be given stronger powers to enforce employer compliance with the 457-visa programme, including the power to conduct unannounced audits of employers and their premises.

This will be complemented with additional powers for the Office of Workplace Services to investigate breaches of the Minimum Salary Level. The Australian Government will also put in place formal arrangements for the fast-tracking of applications from those employers who have a strong and demonstrated record of complying with the 457 visa programme. Applications lodged by fast-tracked employers and their overseas personnel will be priority processed, helping to streamline access to skilled workers.

From 1 July 2007, employers will be also be required to ensure that overseas workers they sponsor have English language skills equivalent to an average score of 4.5 in an International English Language Testing System (IELTS) test, or a higher level where required as part of licensing or registration. Applicants will be required to detail their English language skills and, on a targeted basis, may be required to complete an IELTS test. Employers must recognise that access to temporary skilled migrants is a privilege, not a right, and if they abuse this privilege, then they will face strong penalties.


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