Subclass 457-

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Subclass 457- Business (Long Stay) visa program
WTO Mode 4 Symposium, Geneva Linda Mortensen,
Regional Director Europe Department of
Immigration and Citizenship Australian Government
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Australias trade commitments

• Australias WTO commitments on Mode 4 are based
  on the sub-class 457 visa.
• Most service suppliers take advantage of
  Australias trade commitments by securing a 457
  visa (others obtain a 456 visa).
• The 457 visa was not designed to facilitate trade
  in services but the program is open,
  non-discriminatory and used by very large numbers
  of service suppliers.

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Subclass 457 visa program

• The Subclass 457-Business (Long Stay) visa
  program is for businesses seeking to recruit
  skilled persons from overseas for temporary entry
  into Australia for periods between 3 months and 4
  years.

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Subclass 457 visa program

• Demand driven employment visa (visas holders come
  to Australia to fill specific positions not to
  look for work)
• Economic benefits for Australia, and also for
  sending countries
• More responsive and better targeted to employer
  needs than any other Australian visa category

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Responsiveness
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Four stage process
1. Sponsorship assess the suitability of the
business to be a sponsor 2. Nomination
identify the position the business requires to
fill and skills/experience required. 3. Visa
Application assess the suitability of the
overseas workers skills and attributes
to fill the nominated position 4.
Monitoring sponsor and visa holder are
monitored after arrival to ensure the
Sponsorship Undertakings are being met.
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Step 1 Sponsorship

• The Business must seek approval to sponsor an
  overseas employee.
• Business must be actively and lawfully operating
  and be the direct employer of the overseas
  workers
• Must be of benefit to Australia
• Must have a commitment to train Australian
  workers or be introducing new technology
• Must be in a position to fulfil sponsorship
  undertakings
• Sponsorship approvals are for a specific number
  of visa holders and can be valid for up to two
  years.

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Sponsorship undertakings

• The business sponsor must agree to meet certain
  sponsorship undertakings, including
• Paying a Minimum Salary Level (MSL)
• Complying with Workplace Relations laws
• Their employees being properly licensed or
  registered, where required
• Meeting certain costs of the visa holder, such as
  health costs in a public hospital
• Paying tax and superannuation, as required under
  Australian law
• Complying with immigration laws

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Step 2 Nomination

• The business identifies the position to be
  filled by the overseas employee/s, and the skills
  and experience required for the position.
• This position must be of the Gazetted List of
  Occupations which is drawn from Australian
  Standard Classification of Occupations (ASCO)
  major groups 1-4.
• The nominated position must meet the Minimum
  Salary Level requirement.
• The visa holder must possess the necessary
  skills/qualifications.

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Step 3 Visa Application

• Assesses the suitability of the overseas worker
• The skills, qualifications and employment
  background must match the position on offer.
• Need to meet English language requirements,
  unless exempt.
• Applicant and their dependents must meet other
  requirements for immigration such as health and
  character.

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Monitoring

• Ensures that the sponsor is complying with the
  sponsorship undertakings by performing targeted
  monitoring.

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Monitoring

• If breaches of the sponsorship undertakings are
  found, sponsors may be
• Formally warned
• Barred for a period of time from using the
  program
• Cancelled

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Managing the program

• Managing the Subclass 457 program poses two
  critical and potentially competing challenges
• remaining internationally competitive in
  facilitating movement of skilled and semi-skilled
  persons, in the context of Australias changing
  demographic and skill needs, and in meeting
  international trade commitments and
• safeguarding employment and training
  opportunities for Australians and protecting
  overseas workers from exploitation.

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Key Concerns

• Exploitation
• Undercutting Australian wages and work conditions
• Parallel industrial relation system for overseas
  workers
• Red tape, rules non-transparent and difficult to
  comply with

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Governments position

• The Rudd Government is committed to ensuring the
  457 visa scheme operates as effectively as
  possible in contributing to the supply of skilled
  and semi-skilled workers while protecting the
  employment and training opportunities of
  Australians and the rights of overseas workers.
• http//www.minister.immi.gov.au/media/media-releas
  es/2008/ce01-buget-08.htm

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Reform process
Independent 457 Integrity Review Ms Deegan
Inter-Departmental Committee (DIAC, DEEWR,
Treasury, DFAT, Finance, PMC)
Skilled Migration Consultative Panel (State
governments, unions, industry)
Key ERG External Reference Group report
April 2008 JSCM Joint Standing Committee on
Migration report Temporary visas Permanent
Benefits August 2007 COAG/CSWP Commonwealth
State IDC report - arising from the Council of
Australian Governments and the Ministerial
Council on Immigration and Multicultural Affairs
initiated review of temporary skilled work visa
arrangements
Broader stakeholders (other government agencies,
visa holders, employers, welfare groups etc)
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Key Challenges

• Sponsorship and mobility
• Distinguishing good employers from bad employers
• Determining market salary rates
• Responding to demand for visas for less skilled
  persons and labourers
• Pathway to permanent residence
• Welfare of visa holders

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Objective and approach

• The key objective of the reform agenda is to make
  the program more responsive to employer needs,
  while protecting the employment and training
  opportunities of Australians and the rights of
  overseas workers.
• Compliance approach
• Transparent rules that are easy to comply with
  High cost to those who do not comply.

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Subclass 457- Business (Long Stay) visa program
WTO Mode 4 Symposium, Geneva Linda Mortensen,
Regional Director Europe Department of
Immigration and Citizenship Australian
Government Thank you.