457 Visa System- The 457 Visa System Explained In Detail
The Essential Information
457 visa system explained
For someone to apply for a 457 visa it is a three stage process
1- The Company must be approved as a Standard Business Sponsor
2- The position to be filled must be an approved position
3- The 457 visa applicant must meet the requirements of the visa
Standard business sponsorship essential criteria
The criteria to become a standard business sponsor is set out in Migration Act, Regulation 2.59
The business must be lawfully trading in Australia. regulation 2.59
This involves providing evidence of Business registration and trading activity.
Examples of evidence can include Financial Activity – Profit & Loss, Balance Sheet, Payroll (most recent 12 months), Business Activity Statements (most recent 12 months), end of financial year report, shareholders report amongst others and for Non financial operations – Registration of Business name, Advertising, promotional material, website, ABN and ACN, annual report and trust deed will be required.
Training requirement (regulation 2.59 (d) or (e)
A Business must demonstrate that they are committed to the training of Australians (PR or citizens)
If the business has been training for less than 12 months they need to provide an auditable training plan – which includes, costs, people who will receive the training, the specific training programs, estimated dates training will occur.
If the business has been training for more than 12 months, they must meet training benchmark A or B.
Training Benchmark A
A Business must demonstrate they have made a contribution to an industry training fund to the value of 2% of payroll.
Payroll includes tax AND superannuation
An industry training fund can be a TAFE. Many TAFE colleges have easy on-line payment systems to make the contribution.
A scholarship fund can also be an approved industry training fund.
Training Benchmark B
In order to meet the training requirement for training benchmark B, a business must demonstrate they have spent 1% of payroll on training for their Australian employees.
Paying for a formal or informal course of study for the employees who are Australian citizens and Australian permanent residents or for TAFE or University students, as part of the organisational training strategy.
Employment of apprentices, trainees or recent graduates on an ongoing basis in numbers proportionate to the size of the business.
Employment of a person who trains the business’s Australian employees who are Australian citizens and Australian permanent residents as a key part of their job.
Internal training of employees, which must include training material, trainer’s employment contract, training calendar
Participating in a university coordinated internship program
Other essential criteria include
There must be no adverse information known to the immigration department
The business has put forward the number of people they intend to sponsor during their term of sponsorship
If the business has been a standard business sponsor previously, they provide information on how they fulfilled the training requirement
The business attests that they are committed to employing local labour and non-discriminatory hiring
Nomination of a position within the business
The next step is to apply to nominate a position within the business, that will be filled by the 457 visa holder
The legislative criteria is set out in Regulation 2.73
The essential 457 visa system criteria for an employee
1- the position is listed on the Consolidated Skilled Occupation list (CSOL) and has a 6 digit ANZSCO code
2- the duties and tasks of the nominated position are similar to the ANZSCO description of the position
3- the position is a genuine position within the business
4- the business provides the name of the person who will be nominated to work in that position or the 457 visa applicant
5- the salary offered is above TSMIT ($53,900) and is at the Market Salary Rate (eg. a doctor would make a lot more than $53,900)
6- the employment terms and conditions of the position are not less favourable than they would be to an Australian
7- some occupations require Labour Market Testing – evidence that the position was advertised and no suitable Australian applicants could be found
457 Visa System Nomination Evidence
The evidence in order to meet the criteria includes
Signed employment contract – signed by bother employer and employee and clearly stating the terms and conditions of employment
Detailed job description
Organisational Chart (including the nominated position)
Other evidence to demonstrate it is a genuine position. Can include the following;
Business plan, statement describing how the position came about, examples of work that will be completed by the nominee, information on business operations, job advertisements for the position, CV of nominee
Passport information and address of 457 visa system applicant – including family members
Essential 457 Visa System Criteria For an Employer
1- An approved Standard Business Sponsorship is in place
2- An approved nomination – not more then 12 months
3- the visa applicant has the qualifications, experience and or skills, licensing to do the job (as prescribed by ANZSCO)
4- has adequate health insurance
5- Has the required level of English (IELTS, PTE, CAE)
6- has a valid travel document
7- passes health and character requirements
457 Visa System Evidence
The evidence that is usually provided to meet the criteria
1- passport/ travel document of visa applicant and members of the family
2- evidence of the relationship of the family members eg. Marriage certificate, de facto evidence, birth certificates
3- resume (CV)
5- work reference letters
6- health insurance
8- if there are any character or health issues these are addressed as required. For example if someone has a criminal record, a police check is provided and a statement from the applicant about the incident
Key Information and Further Resources
1- Sponsorship Obligations
Available at: https://www.border.gov.au/Trav/Visa-1/457-
2- Consolidated Skilled Occupation List
Available at: https://www.border.gov.au/Trav/Work/Work/Skills-assessment-and-assessing-authorities/skilled-occupations-lists/CSOL
3- ANZSCO Dictionary
Available at: http://www.abs.gov.au/ausstats/abs@.nsf/Previousproducts/1220.0Search0First%20Edition,%20Revision%201
4- Occupations requiring Labour Market Testing
Available at: https://www.border.gov.au/Trav/Visa-1/457-
If you’ve been in discussions with an employer about potential sponsorship opportunities in Australia we would be delighted to assist. With many years experience dealing with both complex and more straightforward cases we believe we are amongst the best in Australia to be able to deliver your visa.
Put simply, we know the 457 Visa System and will work with both you and your employer to breeze through the 457 Visa System criteria for a successful outcome.
If you are an employer looking for further information, support and guidance for sponsoring employees we will gladly assist.
Take our free assessment for more information