457 Visa: Accredited Sponsorship – A fairer approach for business

Perhaps the most pleasing amendment made to the 457 visa program on 1 July 2017 was the broadening of categories of business which may be eligible for Accredited Sponsorship under the 457 visa program.
Accredited Sponsorship:  What are the benefits?

Prior to employing an overseas national on a 457 visa, the business must first apply to the Department of Immigration & Boarder Protection (“DIBP”) to become an approved sponsor.  Established businesses will either be approved as a standard sponsor or if they meet certain, additional requirements, will be approved as an accredited sponsor. 

The benefits for a business approved as an accredited sponsor include:

• sponsorship approval for a longer period (typically six years instead of five);
• streamlined nomination process in certain circumstances; and
• priority processing for all nomination and visa applications.

In short, accredited sponsors wait less time for their employee’s visa to be approved.  Current processing times for 457 visas have blown out to up to five months most applications so taking steps to determine if your business is eligible for accreditation is a very simple way of being able to get your overseas national staff member working for your business, sooner. 

Accredited Sponsorship:  What are the categories?

There are four categories of business who are eligible to become an accredited sponsor:Category 1:         Commonwealth, state and territory government agencies

• Category 2:         Australian Trusted Traders
• Category 3:         Low Volume Users with High Proportion of Australian employees; &
• Category 4:         High Volume Users with Medium Proportion of Australian employees
  

The required characteristics for each category are further defined and the below is a summary of the requirements. 

 Table One:  Summary of Characteristics for Accredited Sponsor Categories

	Required Characteristics
Category 1: Commonwealth, state and territory Government Agencies	·         Australian workforce is at least 75%
Category 2: Australian Trusted Traders	·         Australian workforce is at least 75% ·         Demonstrate that all employees are engaged under a written employment contract which includes the at least the minimum employment entitlements under the National Employment Standards.  ·         Demonstrate that existing employees are paid in accordance with an Enterprise Agreement or internal salary table that is reflective of current market rates for all occupations within the business
Category 3: Low Volume User	·         Australian workforce is at least 90% ·         Have had at least one primary 457 visa holder in the two years prior to the application for accreditation ·         Publicly Listed company or private company with at least AUD$4Millon turnover in the last 2 years ·         Have been an active 457 sponsor for at least 2 years ·         Demonstrate that all employees are engaged under a written employment contract which includes the at least the minimum employment entitlements under the National Employment Standards.  ·         Demonstrate that existing employees are paid in accordance with an Enterprise Agreement or internal salary table that is reflective of current market rates for all occupations within the business ·         Provide details of all business activities to the DIBP ·         Provide details of all Principals/Directors of the business to the DIBP
Category 4 High Volume Users	·         Australian Workforce is at least 75% of the workforce ·         Have had at least ten primary 457 visa holders in the two years prior to the application for accreditation ·         Publicly Listed company or private company with at least AUD$4Millon turnover in the last 2 years ·         Have been an active 457 sponsor for at least 2 years ·         Demonstrate that all employees are engaged under a written employment contract which includes the at least the minimum employment entitlements under the National Employment Standards.  ·         Demonstrate that existing employees are paid in accordance with an Enterprise Agreement or internal salary table that is reflective of current market rates for all occupations within the business ·         Provide details of all business activities to the DIBP ·         Provide details of all Principals/Directors of the business to the DIBP
NOTE:	The above table is a summary of the characteristics only.  Use this as a guide only.  Make your own enquiries and seek advice from Nevett Ford Lawyers as to the full requirements a business is required to meet

 The period between nomination/visa lodgement and approval is often characterised by a frustrating waiting game for employee and business where your employee is unable to commence working for the business.  The changes made to the accredited sponsorship criteria offer a genuine opportunity for all businesses accessing the 457 visa program to reduce the timeframes associated with this “lost time” and get your employee to start work sooner.  We would suggest that business with robust HR practices that are responsive and up-to-date with legislative changes to workplace laws are appropriately placed to take advantage of these changes.  

Should you have any questions about the above information or if you want to discuss how your business can access these arrangements in more detail please do not hesitate to contact us for a confidential discussion on (03) 9614 7111 on send us an on-line enquiry.

 

Read More»

Australia may introduce ‘mandatory’ provisional visas before permanent residency

Migrants coming to Australia may have to spend a certain period of time on mandatory provisional visas before they are granted a permanent residency. The Immigration Department is exploring this possibility in a visa transformation discussion paper by inviting submissions from the public.

 

The number of persons in Australia applying for permanent residence has grown substantially over the last two decades. In 2015-16, around half of all permanent visas were granted to people already in Australia on a temporary visa.  This means that temporary residence is increasingly becoming the first step to living in Australia permanently.

 

It has also been argued that it’s in the national interest to facilitate a pathway to permanent residence for the “best and the brightest” international students and “skilled workers” and that some permanent visas include mandatory provisional visa stages.

 

However, under most of the permanent visa categories, migrants do not have to spend any time in Australia before they are granted permanent residency, which the discussion paper says is inconsistent with “like-minded countries”, such as the UK, the Netherlands and the US that have a more formal assessment process and period for evaluating those who seek to stay permanently.”

 

Though introducing such a probationary period for permanent migrants is likely to deliver budget savings, concerns have been raised that it could create a divide in the Australian society. The proposed reforms could undermine Australia's social cohesion and potentially increase the risk factors that may lead to violent extremism by creating a two-tier society where migrants are treated substantially differently to Australian citizens.

 

Major changes being discussed include slashing the number of visa categories from 99 to about 10 and making the visa system flexible so the government can respond more quickly to local and global trends.

 

Would you like to know your eligibility for a visa or seeking permanent residence? Call our office today on +61 3 9614 7111.

Read More»