How is the rate of pay determined?Īs at 1 July 2013, the lowest wage acceptable under the scheme, known as the Temporary Skilled Migration Income Threshold (TSMIT) is $53,900, in order to best ensure that all subclass 457 visa holders have sufficient income to independently provide for themselves in Australia. Employers must also provide a clear understanding of the skills and experience required for the position, and identify where the employee will be working. Employers must pay employees a rate equivalent to comparable local wages, and must not underpay their employees or deduct money without the employee’s consent for such purposes as rent or board. Employers must attest to having a strong record of, or commitment to, employing local labour and non-discriminatory employment practices.

What are employers obliged to do under the scheme?īusinesses must make a commitment to meet the prescribed training benchmarks for the program, which require an ongoing commitment to training activities for Australian citizens and permanent residents, and that at least 75 per cent of their workforce are Australian residents or citizens. If DIBP knows of adverse information about the business sponsor, or those associated with the business, then the Department has discretionary power to refuse sponsorship arrangements. Whilst overseas firms would not need to demonstrate the same training commitments, their initial sponsorship term is limited to 12 months in which time they would be expected to make headway towards Australian operations. Overseas employers can also use the program if they are operating legally and actively seeking to establish a business operation on Australia. Employers can be accredited for up to six years before needing to re-apply as a sponsor. Firms must also attest in writing to a record or commitment to the employment of local labour and a commitment to non-discriminatory recruitment practices.Ī standard business sponsorship is valid for three years.

The firm is required to demonstrate or meet minimum training benchmarks based on the length of time that the firm has traded (under or over 12 months). To qualify, businesses in Australia provide an application and fee (the amount is revised on 1 July each year) and demonstrate they are operating as a lawful business. Links to information sources are provided throughout the quick guide and in the final section ‘Need to know more?’Įmployers Which employers can use the program?Įmployers lawfully operating a business inside or outside of Australia can use the program once they have been approved by the Department of Immigration and Border Protection (DIBP) as a ‘Standard Business Sponsor’. This guide provides an overview of the program to assist enquiries into the role of employers and visa holders, and some of the broader considerations in the program. The subclass 457 is the most commonly used program to sponsor overseas workers on a temporary basis. The skilled overseas worker completes the process by lodging a linked temporary work skilled visa application. The program involves a three-stage process whereby an employer applies to become an approved sponsor and then nominates a skilled overseas worker to fill a specific position.

It allows employers to access overseas workers where a genuine skill shortage exists or, in effect, where a suitably qualified Australian worker is not available. The uncapped program is driven by employer demand, and built on the premise that it does not undermine job opportunities for Australians.

The Temporary Work (Skilled) visa, or ‘subclass 457 visa’, allows skilled persons to come to Australia to work for an approved employer, accompanied by their immediate families, for a period of between one day and four years.

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