Overhaul of Australian Temporary-Worker-Visa-Program Makes Permanent Visas More Attractive

The Australian Department of Immigration has2009, the English language requirement has been
introduced a number of changes to the 457 temporaryincreased from an IELTS average 4.5 to average 5.0.
worker visa program so far in 2009, and furtherIn addition, chefs and head chefs are now required to
changes have been announced which amount to aprovide evidence of English - these occupations are in
complete overhaul of the 457 visa system. The 457ASCO Group 3 and were previously exempt from
visa program allows employers to sponsor workersEnglish language testing.
for a visa lasting up to 4 years. Permanent employerWorkers are still exempt from English language testing
sponsored options are unaffected by the changes,if:
making them more attractive than 457 visas in many- They are to be employed in ASCO Groups 1-3 (ie
ways.Managers, Professionals and Associate Professionals)
The changes have been in response to a number ofapart from Chefs and Head Chefs; or
concerns. Firstly, there is a perception that employers- Base salary is $77,850 or higher; or
rely too heavily on the 457 program in a time where- They hold a passport from the UK, Ireland, USA,
the unemployment rate in Australia has been rising.Canada or New Zealand; or
Secondly, there have been several examples of- They have completed certain qualifications taught in
employers who have abused the 457 system leadingEnglish medium Skills Assessment for Trade
to exploitation of workers.Applicants
Minimum Salary LevelA formal skills assessment or "job-ready" test is to be
There will be an increase in the Minimum Salary Levelprogressively introduced from 1 July 2009. To date,
from 1 July 2009. The changes will result in an increasethere is little detail on what this would involve but is
in the applicable minimum salary of 4.1% for all workerslikely to include a workplace-based assessment.
currently on a 457 visa.Regional Sponsorship for Semi-Skilled Workers
The minimum salary levels for workers sponsoredEmployers were previously able to sponsor
after 1 July 2009 will be as follows:semi-skilled workers in ASCO Groups 5-7 to fill
- Non-IT Occupations: $45,221 (currently $43,440)positions in regional areas. Such positions had to be
- IT Occupations: $61,919 (currently $59,480) Benefit toendorsed by the local Regional Certifying Body.
Australia Since February 2009, the Department ofHowever, from 15 May 2009 such workers must be
Immigration has been requesting evidence of thesponsored under a labour agreement. Obtaining a
benefit to Australia of sponsoring the relevantlabour agreement involves an individual negotiation
employee at the nomination and visa application stageprocess for each employer or employer group, and
of the 457 process. Establishing benefit to Australiacan take 12 months or more.
has always been a requirement for approval as aUpcoming Changes to 457 Program
business sponsor, albeit one which the Department ofThe above changes have made obtaining 457 visas
Immigration has not actively policed.more challenging for many employers. However, we
Employers are now being asked to provide informationcan expect further changes in the future, including:
on any redundancies which have occurred within the- Introduction of more objective criteria for assessment
business, evidence of efforts made to recruit localof the Employer's training record;
workers and specific benefits of sponsoring each- Revision of sponsorship obligations;
worker. This has introduced significant delays in the- Expanding the requirement for labour agreements to
application process.larger 457 visa users;
Minimum Salary to be Based on Market Rate- Restricting the maximum length of time a person can
In addition to the above increases in the Minimumspend in Australia on a 457 visa to 8 years;
Salary Level, the Minister for Immigration has- Making it easier for 457 holders to change employer
announced that from 1 September 2009 the requiredor move onto permanent visas from within Australia.
salary level will be based on a "market rate". At thisPermanent Visas Now More Attractive
point, there are not many details on how this will beThe changes have not so far affected the permanent
calculated.employer sponsored options (ie ENS and RSMS). The
However, it is likely that the market rate requirementpermanent options are currently being processed
will only apply where the remuneration package isreasonably quickly and may be a better option for
under $100,000. The following sources of informationemployers who are concerned about sponsoring under
are likely to be considered in estimating the marketthe 457 program. In particular, the permanent options:
rate:- Do not require employers to show benefit to
- Salary paid for equivalent positions in the business;Australia
- Rate set by any Collective Agreements in effect- Salary need not be paid at the market rate
- Australian Bureau of Statistics (ABS) Data The- Regional concessions are still available
Department has already taken measures to implement- English language testing can be waived and is lower
this policy - sponsors have been requested in somefor regional positions
cases to provide copies of employment contracts for- There are no ongoing sponsorship obligations. For
employees in similar positions to the 457 applicant.employees, permanent visas are also much more
English Language Ability for Trade Applicantsfavorable as they give access to Medicare, eligibility
English language testing is required for people beingfor Australian citizenship and make them less
sponsored to work in trade occupations (ie ASCOvulnerable if they lose their job.
Group 4). For applications lodged on or after 14 April