Sponsorship by Australian or Overseas Business - visa subclass 457
This visa class is for an Australian or overseas business who is unable to fill skilled positions from the labour market in Australia. Sponsorship can be for up to 4 years and the positions must be full-time (38 hours per week) and meet minimum skill and salary levels.
There are 3 steps in the application process:
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Sponsorship the employer applies for approval as a Standard Business Sponsor by completing part A on form 1196
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The employer nominates the position to be filled and the primary person to fill the position by completing part B on form 1196
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The prospective employee applies for a Temporary Business (Long Stay) visa subclass 457 by completing form 1066
These forms can be lodged electronically by an Australian business operating in Australia or if outside Australia the printed forms must be lodged at the Australian High Commission in London by post or courier. Forms 1196 and 1066 can be lodged individually or together but form 1066 cannot be lodged prior to form 1196.
Please note: The primary applicant sponsored by an overseas business must be outside Australia when form 1066 is lodged but the spouse and dependents may be in Australia when the application is lodged.
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Sponsorship undertakings and monitoring of business sponsors
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A sponsor must agree to meet certain sponsorship undertakings in relation to overseas employees and their dependents. This includes;
A full summary of the sponsorship undertakings can be found in the DIAC booklet number 11 (pages 7 & 8)
The primary applicant is subject to visa condition 8107.
This requires that a primary holder of a subclass 457 visa, sponsored to work in Australia, must not:
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Cease to be employed by the employer who sponsored them
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Work in a lower skilled position
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Work for another person or themselves
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Spouse and Dependent Children
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A spouse of the primary applicant can work and study during his/her stay in Australia. Visa holders (including dependent children) may incur education/tuition fees and should contact the relevant authority in the state for more details. Studies undertaken at tertiary level will attract the same fees which apply to overseas students.
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Sponsorship by a Business Operating in Australia
| To be approved as a sponsor the employer must demonstrate that the business:
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Is a lawfully and actively operating business a new businesses or business proposals may be considered if there is clear evidence of intention to establish the business.
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Will be the direct employer of the temporary business entrant this usually involves responsibility for payment of salaries, PAYG tax instalments, superannuation, the conditions of employment and day-to-day supervision of the employee.
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Has a good business record and complies with immigration laws this generally means that there is nothing adverse known about the business and its principals or the activities of the business are of a nature generally considered unacceptable in Australia.
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Is of benefit to Australia the sponsor will need to demonstrate that the employment of the applicant will contribute to either:
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creating or maintaining employment for citizens or permanent residents of Australia
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expanding Australian trade in goods or services
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improving Australian business links with international markets
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increasing competitiveness within sectors of the Australian economy
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Will advance skills through technology or training the employer must demonstrate that:
- their Australian business operations will introduce, use or create new or improved technology or new business skills; or
- satisfactory record or commitment towards training Australian citizens or permanent residents in their business operations.
See pages 11 & 12 in booklet number 11 for more detailed information plus checklist on page 14.
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Sponsorship by an Overseas Business
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Businesses which have no formal operating base or representation in Australia may apply to bring employees to Australia in order to establish a branch, joint venture, or agency distributorship and subsidiary branches in Australia or fulfil obligations for a contract or other business activity in Australia
Overseas employers must also be able to satisfy the undertakings (1, 2, 3 & 4) outlined above.
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Skill and Salary Threshold
| Skill Threshold
A minimum skill level applies to all positions to be filled by overseas employees. The position must be of an equivalent skill level described in the Australian Standard Classification of Occupations (ASCO), major groups 1-4 inclusive defined in booklet 11.
Major group 1 Managers & administrators page 38 Major group 2 Professionals pages 38-42 Major group 3 Associate professionals pages 42-44 Major group 4 Tradespersons and related workers page 44
When nominating the positions to be filled, sponsors must outline the duties, roles and responsibilities involved in the position they are seeking to fill. If there are doubts about the primary applicants skills, a skills assessment may be requested plus if applicable evidence of relevant registration or licensing for the occupation.
Salary Threshold
The nominated salary (before tax) must be no lower than a minimum salary level specified in a Gazette notice at the time of nomination application is lodged. The minimum salary for non-communications and technical occupations currently is A$43,480 and for applicants employed in communication and technical occupations A$59,480. The salary and working conditions must be in line with Australian laws and meet any applicable award based on a 38 hour working week. The salary must be paid to the primary person on a regular basis and does not include:
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salary sacrificing/packaging (forgo wages or salary in lieu of non-cash benefits)
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accommodation or rental assistance, board, upkeep, meals or entertainment
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incentives, bonuses or commissions
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shares or bonus shares
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travel, holidays, health care/insurance
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vehicles or vehicle allowances
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communications packages
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living-away from home-allowance
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superannuation contributions (either voluntary employee or compulsory employer contributions)
Please note: a skill and/or salary concession may be considered for applicants who are employed in regional Australia.
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Health & Character Requirements
| All primary applicants and their dependents must meet current health standards and be of good character.
In some cases, health requirements may be waived if the Australian employer gives a written undertaking to DIAC that they will meet all costs relating to a disease or condition. There is no option of a waiver if the condition may result in a public health risk.
Police certificates are not normally required but may be requested by DIAC and are applicable to any countries the primary applicant and dependents aged 16 or over have resided for cumulative periods of 12 months or more during the lat 10 years.
Nomination application charge (per nomination) A$280.00 Business Sponsor by Australian or Overseas businesses (per nomination) A$ 60.00 Visa Application Charge (primary applicant and dependents) A$250.00
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