Changes To The 457 Business Sponsorship Program

After considering the points highlighted in the Independent Review into the Integrity of the 457 Visa report, the Australian government have accepted the recommendations that have been put forward. This means that you can expect some reductions in the red tape for the 457 business Sponsorship Program.

Take a look at some of the expected changes that you can see being implemented in 2015/16 year.

Training Benchmarks for 457 Sponsorship

The requirements that are needed for training are expected to become simpler as a replacement for the existing training benchmark. The Independent Review into the Integrity of the 457 Visa report gives the suggestion that there should be a levy on training that is dependent on the size of the employer and the level of which they use the 457 program. The existing structure has it so a certain percentage of payroll is to be spent on training of Australian permanent residents or citizens. The Report suggested a training levy which depends on the size of the employer and the degree to which they use the 457 program.

In an administrative sense, the changes could lead to a significant reduction in paperwork as at present, employer’s are required to put forward a large amount of evidence. This is so that they are able to establish the business’ training record. The changes are likely to come into effect in 2016 with updated announcement set to be made in the coming months.

English Requirement for 457 Visas

As with other skilled visas, the 457 subclass could see it adopting the Alternative Test of English. This recommended change may also be introduced alongside an alteration to the score which an applicant needs to achieve in the IELTS (Vocational English). An average band score of 5 will be accepted, providing the applicant has at least 4.5 in each band.

In regards to the exemption from the English Language testing, those who previously had studied in an English medium with a break from studies may still have to undertake the test. This is due to the proposed change of a ‘cumulative period of five years’.

Expect to see these changes implemented in the near future as the the English language requirement is expected to become far less stressful and needing more effort from applicants.

Business Sponsorship Validity Periods

All changes to the validity periods are to only affect those who have become approved after the changes have been put into the program. The validity period is proposed to be extended for businesses who have only been operating for less than 12 month, from the already set 12 months to a period of 18 months or five years. In the existing 457 program, all employers before they are able to sponsor staff under the program are required to be be approved as a business sponsor. So what does this mean to employers? The changes will see business not needing to renew their sponsorships as often as they are required to under the existing program, with the changes likely to happen in the next 6 months.

Salary Level

In regards to the salary level for the 457 visa, the Government has shown signs of their support towards the following changes to the salary level for 457 visas. Under the current 457 visa program, the minimum salary level (TSMIT) is set to be maintained at $53,900 for the next few years. The Independent Review into the Integrity of the 457 Visa report identifies the level of TSMIT and whether it should be varied by locality. The result of the locality factor could see and acceptance of a lower minimum salary for those in a regional post. The minimum salary for waiver of the market rate salary requirements be reduced from $250,000 to $180,000

This subject is very tricky to handle in a political sense and although the Government shows support for the recommended changes, the proposition will see opposition in the Senate.