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Changes expected for the 457 visa

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  • 09-04-2013 12:59pm
    #1
    Registered Users Posts: 179 ✭✭


    Anyone there considering applying for a 457 visa?
    You should be aware that there are changes coming down the line which will make it a greater disincentive for employers to hire foreign workers under the 457 visa.


    Immigration Minister Brendan O'Connor says the changes will reduce the number of 457 visa applications, which have outstripped national employment growth.



    What changes are being considered?

    Some of the key changes expected will include

    extending powers to the Fair Work Ombudsman (FWO) to monitor key aspects of employers’ compliance with 457 visa conditions - employers are paying the market rate and that the visa holders are doing the job the visa was granted for.


    requirement for employers to demonstrate there is a genuine skills shortage, and they will not be able to send foreign workers to an area where local skilled workers are available.


    an increase of the minimum salary requirement. This will mean that employers will now be looking at higher salary costs for their business.

    training requirements for the employer may also will become tougher - this will also increase the financial burden on the employer to pay more towards training their Australian employees.

    What does this mean for those considering applying for the 457?
    The requirement from many employers we deal with for job placements is that they want people who have permanent residency visa status or citizens only. Many employers are now rethinking their employment strategy of hiring people on 457 visas (not to mention the WHV).

    If you have an employer that is considering sponsoring you, you need to act fast and get your 457 application in and lodged before the expected changes are introduced in July 2013.

    For those that are finding it difficult to secure a sponsor, then you need to look at your permanent residency options early on - so that you allow yourself enough time for your permanent residency visa to be processed while you remain working on your current visa.

    Your permanent residency PR options may include:
    State sponsored skilled migration
    Independent skilled migration
    Employer Nomination Scheme
    Regional Skilled Migration Scheme
    Defacto - for those of you with an Australian partner for 12 months or more.

    We have noticed a large jump in the PR applications that we are preparing for people who are in Australia and looking to remain on there.

    I hope that this is of some help to people and encourages them to consider their options and take action sooner rather than later.


    Declan Clune


«13456

Comments

  • Registered Users Posts: 148 ✭✭melonstar


    Hi Declan,
    Thanks for this update. My 457 visa was finalised last week and I am heading over to Oz in May. Will they be backdating any of these changes or will it just be from July on?
    Thanks


  • Registered Users Posts: 179 ✭✭DeclanClune


    melonstar wrote: »
    Hi Declan,
    Thanks for this update. My 457 visa was finalised last week and I am heading over to Oz in May. Will they be backdating any of these changes or will it just be from July on?
    Thanks

    Congratulations on securing your 457 visa Melonstar.

    Most changes to visa criteria introduced by DIAC normally only affect new visa applications that are lodged after the changes are introduced.

    In terms of meeting the salary and training requirements, any changes to these would not affect your visa as it is granted.

    How you could be affected is with the increased monitoring of sponsors / employers - you need to ensure that you are working in the job that the visa is granted for and that your salary is not below the market average. These are things that the monitoring taskforce will check with approved sponsors with more scrutiny from July 2013 regardless when the visa is granted.

    Hope that helps. Any other qs - let me know and good luck.

    Declan Clune


  • Registered Users Posts: 148 ✭✭melonstar


    Thanks for that Declan.


  • Registered Users Posts: 595 ✭✭✭markymark21


    Ah it's gonna be squeeky bum time for me. I've landed a job as a restaurant manager and they want to see me work for a while before they start the sponsorship process - which is fair enough. Although they have said that they have been looking for the right candidate for a while so that should protect me if the labour market testing rule comes in.. I hope.

    I read this article a while ago as well - think it may be untrue if what Declan is saying is correct. Although only a couple of months ago the Western Australia hotels federation was over in Ireland recruiting due to the lack of staff in that region. I think that if they do increase restrictions for the 457 visa the hospitality industry will be up in arms. There is still a serious shortage of chefs everywhere in Australia

    http://www.gettingdownunder.com/australian-457-visa-update-attract-hospitality-workers/


  • Registered Users Posts: 6,240 ✭✭✭hussey


    Excellent post Declan.
    I found some of the changes pretty vague on what exactly it means from the government point of view.


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  • Registered Users Posts: 179 ✭✭DeclanClune


    Ah it's gonna be squeeky bum time for me. I've landed a job as a restaurant manager and they want to see me work for a while before they start the sponsorship process - which is fair enough. Although they have said that they have been looking for the right candidate for a while so that should protect me if the labour market testing rule comes in.. I hope.

    I read this article a while ago as well - think it may be untrue if what Declan is saying is correct. Although only a couple of months ago the Western Australia hotels federation was over in Ireland recruiting due to the lack of staff in that region. I think that if they do increase restrictions for the 457 visa the hospitality industry will be up in arms. There is still a serious shortage of chefs everywhere in Australia

    http://www.gettingdownunder.com/australian-457-visa-update-attract-hospitality-workers/


    Hi MarkyMark21,

    The article is right in the sense that the hospitality industry is actually one of the industries facing severe staff shortages. So proving that the employer is having difficulty filling a position will not be too difficult to do.

    We are actually working directly with WA Hotel Federation and placing Irish Chefs and Restaurant Managers in WA with their members so we are familiar with their needs and requirements and their members (hotels and restaurants in WA) are definitely experiencing staff shortages.

    The changes would affect employers who were bringing in someone in one occupation but have them working at a lower skilled job. Also employers were bringing in employees but paying them salaries well below the required level as per to the 457 criteria.

    I have no doubt that this was happening in the hospitality, construction, beauty and other trade industries.

    Increased monitoring from the Fair Work Ombudsman (FWO) will aim to reduce the violations of the 457 visa criteria from being broken.

    Increased monitoring coupled with expected increased salary and training requirements will make the 457 less attractive.


    Declan Clune


    Regards,
    Declan


  • Registered Users Posts: 595 ✭✭✭markymark21


    Hi MarkyMark21,



    We are actually working directly with WA Hotel Federation and placing Irish Chefs and Restaurant Managers in WA with their members so we are familiar with their needs and requirements and their members (hotels and restaurants in WA) are definitely experiencing staff shortages.



    Regards,
    Declan


    Which company do you work for Declan? Do you guys work with any Victorian hospitality businesses? If the role I've recently taken up doesn't work out any contacts may help.


  • Registered Users Posts: 6,240 ✭✭✭hussey


    Which company do you work for Declan? Do you guys work with any Victorian hospitality businesses? If the role I've recently taken up doesn't work out any contacts may help.

    declan works for a very famous visa company a 2 second google will find his linkedin (http://ie.linkedin.com/pub/dir/Declan/Clune)


  • Registered Users Posts: 179 ✭✭DeclanClune


    Hi guys,

    Just to advise that DIAC are introducing price hikes to the visa part of the 457 application this July. The visa application fees will increase from AUD455 to AUD900 (100% INCREASE !!).

    Fees for partners / dependents for all visa subclasses are expected to be introduced in July - nothing released yet.

    If you are thinking of submitting an application, my advise is to get it lodged ASAP before you have to incur higher fees.

    Thanks,
    Declan Clune


  • Registered Users Posts: 36 eoindoyle_syd


    Hi guys,

    Just to advise that DIAC are introducing price hikes to the visa part of the 457 application this July. The visa application fees will increase from AUD455 to AUD900 (100% INCREASE !!).

    Fees for partners / dependents for all visa subclasses are expected to be introduced in July - nothing released yet.

    If you are thinking of submitting an application, my advise is to get it lodged ASAP before you have to incur higher fees.

    Thanks,
    Declan Clune

    Well the new immigration minister has completely succeeded in demonising 457 visa holders through the media.

    http://www.partyforfreedom.com.au/2013/02/21/visa-457-foreign-workers-stealing-aussie-jobs/

    http://www.theage.com.au/it-pro/government-it/employers-want-a-cheapie-just-arrived-off-the-boat-aussie-it-workers-told-20130315-2g515.html

    Looking at some recent forums many now believe 457 visa holders;

    - have arrived by boat, (they are called boat people here, not asylum seekers)
    - are stealing aussie jobs
    - are cheap labour
    - should go back to where they came from

    A lot of mis-information going out right now! Such a shame as only 1 year ago IMMI were recommending 457 being the best route to attaining PR.

    And $455 --> $900 increase is shocking!


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  • Registered Users Posts: 241 ✭✭Pingu


    At the risk of ostracising myself, it really is a paltry increase.

    I was discussing it with some Aussie's last night. and in the overall scheme of landing a skilled worker here:

    Flights: $2,000
    Initial Accommodation: $1,000 - $3000
    Moving Expenses: $2,000 - $5,000
    Recruiter Fees: $10,000 - $30,000
    Migration Agent: $5,000 - $10,000

    Given the purpose of the visa, skilled workers I would consider $900 pretty cheap. If you break down the labour overhead cost of an office worker processing this it really would be less than a days work given the over head rate is approx $120/ph


  • Registered Users Posts: 4,435 ✭✭✭mandrake04


    I cant understand why people are surprised there is going to be such high increase everyone knows there have been rorts in the 457, unskilled laborers dressing up their job to look like something more substantial, people in reality getting paid less than the TSMIT, paying sham companies to nominate them and the self sponsorship scams.

    Its all here in the Ministerial paper attached

    The will be an increase the amount and time of DIAC case officers/Investigative officers, they will probably spend twice as long checking information rather than give the benefit of doubt.

    Also DIAC are now cross data matching with the ATO as far back as 2011 to see how much and exactly who has been paying temporary visa holders, of course the cost of all this has to come from the 457 pot.


  • Registered Users Posts: 330 ✭✭statina


    For a 4 year visa, I think $900 is pretty cheap!


  • Registered Users Posts: 1,208 ✭✭✭Batgurl


    But it's not a 4-year visa ... it's a possible 4-year visa.

    All good and well if you're lucky enough for your employer to cover the costs but it's a sizeable increase for someone who has to fork it out themselves (which shouldn't happen but we all know does).

    Thing is, this increase isn't going to deter the cowboy employers who are flouting the system. $500 is nothing to genuine employers so they won't mind paying but the dodgey ones will just pass on the increase to the desperate employees.


  • Registered Users Posts: 36 eoindoyle_syd


    Pingu wrote: »
    Given the purpose of the visa, skilled workers I would consider $900 pretty cheap. If you break down the labour overhead cost of an office worker processing this it really would be less than a days work given the over head rate is approx $120/ph

    On the contrary I think this increase is insane. Remember, this visa is simply there to allow employers sponsor an overseas person to come and work to fill a gap in the market. It is a basic temporary work visa. Some come for 3 months on it, others for 4 years. I've been on two 457's for a total of 3 years maybe. That's $1800 not taking into account nomination and sponsorship costs of another $500 for each visa!

    Cost in other countries:
    Canada = $150
    US = $160
    UK = 200GBP

    Their making it pretty hard for young people to come over and "have a fair go". In a small business sponsorship these costs will be passed onto the applicant sadly.


  • Registered Users Posts: 179 ✭✭DeclanClune


    On the contrary I think this increase is insane. Remember, this visa is simply there to allow employers sponsor an overseas person to come and work to fill a gap in the market. It is a basic temporary work visa. Some come for 3 months on it, others for 4 years. I've been on two 457's for a total of 3 years maybe. That's $1800 not taking into account nomination and sponsorship costs of another $500 for each visa!

    Cost in other countries:
    Canada = $150
    US = $160
    UK = 200GBP

    Their making it pretty hard for young people to come over and "have a fair go". In a small business sponsorship these costs will be passed onto the applicant sadly.


    Hey EoinDoyle - I was going to make that exact point. I think that it is expensive relative to other countries.

    It is a revenue making exercise for DIAC - pure and simple
    The employer pays these visa application fees anyway so it does affect the applicant in any case !!!!!! (yeah right !)


  • Registered Users Posts: 1,191 ✭✭✭The_Hustler


    Batgurl wrote: »
    But it's not a 4-year visa ... it's a possible 4-year visa.

    All good and well if you're lucky enough for your employer to cover the costs but it's a sizeable increase for someone who has to fork it out themselves (which shouldn't happen but we all know does).

    Is this not the employee visa application fee? There is nothing to say this shouldn't happen and nothing dodgy about that


  • Registered Users Posts: 179 ✭✭DeclanClune


    Pingu wrote: »

    Flights: $2,000
    Initial Accommodation: $1,000 - $3000
    Moving Expenses: $2,000 - $5,000
    Recruiter Fees: $10,000 - $30,000
    Migration Agent: $5,000 - $10,000

    Hi Pingu,

    What agent is charging $5K - $10K? !!!

    Fees are $2K for sponsorship or $3K for permanent residency and we have a price promise too for the exact same service !

    Anyway - you point is valid - when you look at the grand scheme of things the increase isn't that much but it all goes into DIAC's bank account. In my opinion, they are taking advantage of the 457 applicants.

    Regards,

    DECLAN CLUNE


  • Registered Users Posts: 309 ✭✭niva*sis


    hi all,

    has anyone heard if there are going to be any changes to the skilled lists?

    new skills added or current ones removed?

    thanks :)


  • Registered Users Posts: 49 !Nicky!


    Hi Declan,
    My company is ready to put in the 457 application as soon as I want to.
    If I stay on a 417 until the end of the tax year will I receive more tax back?
    Is there really a big risk in waiting until after 1/7/13 to apply if my company is willing to sponsor, I'm in a position as per my qualification with a reputable company in WA and everything is above board?
    From what I've read on immi there doesn't seem to be any risk, also I have heard there can be some benefits after the 1/7 such as a 90 day period should you lose your job to find a new sponsor as opposed to 28.

    Any info would be much appreciated.

    Thanks


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  • Registered Users Posts: 736 ✭✭✭Legend100


    !Nicky! wrote: »
    Hi Declan,
    My company is ready to put in the 457 application as soon as I want to.
    If I stay on a 417 until the end of the tax year will I receive more tax back?
    Is there really a big risk in waiting until after 1/7/13 to apply if my company is willing to sponsor, I'm in a position as per my qualification with a reputable company in WA and everything is above board?
    From what I've read on immi there doesn't seem to be any risk, also I have heard there can be some benefits after the 1/7 such as a 90 day period should you lose your job to find a new sponsor as opposed to 28.

    Any info would be much appreciated.

    Thanks

    There is no difference tax wise being on a 417 or 457 - they are both temporary visas. Tax is based on your residency for tax purposes, not visa status (other than Medicare with PR)


  • Registered Users Posts: 556 ✭✭✭danotroy


    http://blog.entitysolutions.com.au/meet-the-new-one-per-cent-australias-457-visa-holders/

    "Few topics are as politically divisive to Australians as immigration. It seems ever since Europeans first arrived here, we’ve been looking over our collective shoulder, worrying and arguing about who we should let in and under what circumstances. Even what should be innocuous immigration topics have the potential to set tensions running high. One of the best examples of this is the ongoing debate surrounding temporary employer sponsored workers entering the country under 457 visas.

    In the past few months, scarcely a week has gone by without a story appearing in the media about the integrity of the 457 and other temporary work visa programs. Generally, the stories and many of the commentators approach the issue of work visas from a negative viewpoint, insinuating that Australian employers are somehow rorting the system and that the local workforce is suffering due to an influx of overseas workers. Before taking a position however, it is always a good idea to look beyond the headlines and try to understand the real situation.

    The facts

    According to the Department of Immigration and Citizenship website, the 457 visa is “for skilled workers from outside Australia who have been nominated and sponsored by a business to work in Australia on a temporary basis”. For a business to sponsor someone from overseas for a 457 visa, it must, among other things, “demonstrate their commitment to employing local labour”, and demonstrate a contribution to “the training of Australian workers by providing evidence of meeting the training benchmark”.

    It is worth noting that at present, there is no requirement to show that the employer attempted to fill the position locally.

    It is also important to understand there are currently around 105,000 457 visa holders in Australia. This roughly equates to just one per cent of the workforce. There are around twice as many student visa holders, many of whom will seek to remain permanently on completion of their tertiary studies.

    Statistics have been used to show that 457 visa increases are tracking at a much higher rate than job growth. However, as the ABC 7.30 Report pointed out back in March, this does not take into account the number of workers exiting the workforce each year. Australia’s aging population and the ongoing global skills shortage mean we will continue to need to source skilled workers from overseas well into the future.

    Businesses seek simplicity, not complexity

    No business deliberately seeks out complexity. Organisations almost always prefer to recruit locally where possible as this reduces cost and compliance issues. The problem is, sometimes they just can’t find the skills they need and when that happens, a 457 visa may be the only way to bring those skills into the company – and ultimately, to transfer those skills to Australian workers.

    On 1 July 2013 the Federal Government will introduce a number of reforms for the 457 visa program. Key among these are:

    the requirement for the nominated position to be a genuine vacancy within the company;
    the ability to take steps against sponsors who engage in discriminatory recruitment practices;
    market salary rate requirements;
    strengthened English language requirements;
    new training obligations for local employees; and
    a tightening of employment contracts for visa holders.
    The net effect of these changes will be to add more layers of red tape to the 457 visa process.

    These visa holders usually bring much-needed specialised trade or professional skills in the areas of health, engineering and construction. They are frequently deployed in remote or needy locations. Wouldn’t it make more sense to streamline recruitment processes, rather than making them more complex?

    The 457 visa program should be designed to give all businesses the flexibility to source workers on temporary assignments, to bring in skills that are crucial when operating in an international marketplace where global mobility is the norm.

    A pathway for permanence?

    To take the program one step further, perhaps we should also be looking to provide a secure pathway for all 457 visa holders who have become valued employees and who wish to remain permanently in Australia.

    The government presides over a migration program with over 129,000 skilled places available in the current migration program year. These skilled permanent residence visa holders enter the labour market eventually, so does it really matter whether they arrive on a temporary visa first or apply for a permanent visa offshore and look for work on arrival?

    Australia is a great place to live and work. People are attracted to our climate and lifestyle. The global mobility of skilled talent means Australia must compete with countries that are also seeking to attract skilled workers from overseas. It’s a pity the continual 457 debate does little to instil confidence that Australia is the place to which they should commit their own and their children’s future"


  • Registered Users Posts: 39,104 ✭✭✭✭Mellor


    !Nicky! wrote: »
    Hi Declan,
    My company is ready to put in the 457 application as soon as I want to.
    If I stay on a 417 until the end of the tax year will I receive more tax back?
    Is there really a big risk in waiting until after 1/7/13 to apply if my company is willing to sponsor, I'm in a position as per my qualification with a reputable company in WA and everything is above board?
    From what I've read on immi there doesn't seem to be any risk, also I have heard there can be some benefits after the 1/7 such as a 90 day period should you lose your job to find a new sponsor as opposed to 28.

    Any info would be much appreciated.

    Thanks
    Waiting until after 30th June will mean the visa will cost more


  • Registered Users Posts: 595 ✭✭✭markymark21


    Just sent all my info today..hope to god the agent gets it all lodged by July 1st!


  • Registered Users Posts: 219 ✭✭purcela


    Just sent all my info today..hope to god the agent gets it all lodged by July 1st!

    My company lodged mine yesterday...waiting game now.


  • Registered Users Posts: 595 ✭✭✭markymark21


    purcela wrote: »
    My company lodged mine yesterday...waiting game now.


    Yeh mine got lodged today..such a relief. I've got the missus as a De Facto so hopefully there are no hiccups.


  • Registered Users Posts: 1,521 ✭✭✭ardle1


    Anyone there considering applying for a 457 visa?
    You should be aware that there are changes coming down the line which will make it a greater disincentive for employers to hire foreign workers under the 457 visa.


    Immigration Minister Brendan O'Connor says the changes will reduce the number of 457 visa applications, which have outstripped national employment growth.



    What changes are being considered?

    Some of the key changes expected will include

    extending powers to the Fair Work Ombudsman (FWO) to monitor key aspects of employers’ compliance with 457 visa conditions - employers are paying the market rate and that the visa holders are doing the job the visa was granted for.


    requirement for employers to demonstrate there is a genuine skills shortage, and they will not be able to send foreign workers to an area where local skilled workers are available.


    an increase of the minimum salary requirement. This will mean that employers will now be looking at higher salary costs for their business.

    training requirements for the employer may also will become tougher - this will also increase the financial burden on the employer to pay more towards training their Australian employees.

    What does this mean for those considering applying for the 457?
    The requirement from many employers we deal with for job placements is that they want people who have permanent residency visa status or citizens only. Many employers are now rethinking their employment strategy of hiring people on 457 visas (not to mention the WHV).

    If you have an employer that is considering sponsoring you, you need to act fast and get your 457 application in and lodged before the expected changes are introduced in July 2013.

    For those that are finding it difficult to secure a sponsor, then pyou need to look at your permanent residency options early on - so that you allow yourself enough time for your permanent residency visa to be processed while you remain working on your current visa.

    Your permanent residency PR options may include:
    State sponsored skilled migration
    Independent skilled migration
    Employer Nomination Scheme
    Regional Skilled Migration Scheme
    Defacto - for those of you with an Australian partner for 12 months or more.

    We have noticed a large jump in the PR applications that we are preparing for people who are in Australia and looking to remain on there.

    I hope that this is of some help to people and encourages them to consider their options and take action sooner rather than later.


    Declan Clune
    Jaysus I wish we had a minister just like him 'applause
    applause'


  • Registered Users Posts: 219 ✭✭purcela


    Yeh mine got lodged today..such a relief. I've got the missus as a De Facto so hopefully there are no hiccups.

    Same as. $450 instead of $1800, had to get it lodged before Monday!


  • Registered Users Posts: 812 ✭✭✭rightyabe


    What if your employer lodged your nomination last week? Will they still have to adhere to these new laws?


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  • Registered Users Posts: 595 ✭✭✭markymark21


    rightyabe wrote: »
    What if your employer lodged your nomination last week? Will they still have to adhere to these new laws?


    Nah I think once you've lodged your application before July 1st your visa applications bound by the current rules


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