457 Review
In September 2014, after four months of consultations, with
feedback from 189 submissions and more than 150 stakeholders, the results of
the independent review into the 457
program were published. 22
recommendations were made overall in the pursuit of increased deregulation and
liberalisation to improve the flexibility, responsiveness and certainty of the
457 program.
On 18 March 2015 the
Government published its response which, with the exception of the extension of
the list of countries exempted from English language testing and the
continuation of Labour Market Testing, supported or supported ‘in principle’
all the recommendations.
Among those recommendations,
the most important appear to be the following:
Recommendation
|
Government Response
|
|
Relaxing
of the English Language Requirement
The report recommended a relaxation of the
current English Language requirement by accepting the average
score, extending the number of testing authorities, increasing the number of
countries exempt from English language testing.
|
The English language
level will be altered to an IELTS average of 5 overall, with no less than 4.5
in any band. Alternate English language test providers are likely to be
announced next month. The exemption for demonstrating English
language competency will not be extended to further countries, although the
current exemption for 5 years continuous study in English will be changed to
5 years ‘cumulative’ study.
|
Increasing
validity period for Standard Business Sponsorship
The
report recommended extending the approval period from 3 to 5 years for
established businesses and from the current 12 months to 18 months for
start-up businesses.
|
SBS
approvals will be extended
from 3 to 5 years and from 12 to 18 months for start-up businesses. These new
approval time frames will commence from the time of renewal or new
applications for SBS. Current approvals will not be extended to these time frames.
|
Halving the time with the 457 sponsoring employer to access
the 186 visa
The report recommended maintaining
the two year period on a 457 for the Temporary Residence Transition stream
but decreasing to one year the amount a 186 applicant needs to spend with the
sponsoring employer.
|
The age limitations and the TRT time
frames for transition to ENS will be reviewed as part of the
Skilled Migration and 400 Visa Series Review, but the recommendations on
these from the 457 review are supported.
|
|
The
review recommended the abandonment of the current training benchmarks in
favour of an annual "training levy" for each sponsored 457 holder
(between $400 and $800) depending on the size of the business.
|
Training
Benchmarks A and B will be replaced
with an annual training fund contribution based on the number of 457
sponsored and with the contributions scaled according to the size of the
sponsoring organisation These contributions will be made to the Department of
Industry and directed to areas of identified training need. Training
expenditure cost may decrease for sponsors under this new arrangement.
|
Enhanced Compliance
The report recommended
that the Department of Immigration should follow more closely the model of
the ATO identifying discrepancies by risk tiering and data matching
techniques. Furthermore, more funding should be allocated to monitoring and
sanctions, as well as improving linkages with other agencies such as the Fair
Work Ombudsman.
|
The ATO and the
Department have signed an MOU which allows information to be shared on 457 visa holder
salaries. The MOU allows the Department to request salary
compliance checks across a broader range of the sponsored employees and
businesses, without increasing the number of work site visits.
|
Reviewing the Occupations List for
457 Occupations and the Labour Market Testing requirement by a Tripartite
Advisory Council
The
report recommended that a new Ministerial Advisory Council be set up in place
of the current one. The new entity should be composed by representatives from
Government, Unions and Industries and be supported by a dedicated market
analysis team. The report recommended that the current Labour Market Testing
be abolished.
|
The Ministerial
Advisory Council on Skilled Migration cannot be replaced, but
advice is being sought on whether it can be reconstituted to be more
responsive on labour market issues.
|
Labour Market Testing
The report recommended that
employer-conducted labour market testing
be abolished as not “fully reliable” and, in the Australian context,
ineffective.
|
|
Labour
market testing will not be abolished, however, the Department will
examine ways to reduce the burden to employers and red tape in this process.
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