457 Visa Scheme – How it Works

The following constitutes general guidance only, and is intentionally broad. Further details can and should be obtained from a Registered Migration Agent, either in Visa Workforce’s office, or any independent, registered agent you wish to consult.

Principal points of interest are;

  • Generally 457 visas are available for skilled applicants. Some concessions may be available for regional employers, and for occupations in demand.
  • Visas are issued for up to four (4) years duration.
  • The visa links the applicant and the sponsoring employer. A worker may only work for their sponsoring employer, and in the specified occupation for which the visa was issued.
  • Applicants can bring dependants, conditions apply.
  • Under certain conditions, 457 visa holders can apply for Permanent Residency.

Steps for sponsoring workers on 457 visas are;

A business must apply for Sponsorship Approval. Essentially you must demonstrate your business credentials, your financial stability and capability, your commitment to training Australian workers. You will have to provide all or some of the following: corporate details, accounts, business plan, training records etc. You will apply for a specified number of workers that you may want to sponsor over the following two years. You are not locked into sponsoring this number of workers. You may get approval for this number of workers or a lesser number (or none if you cannot demonstrate your business bona fides).

Subsequent Nominations are submitted, by occupation. i.e. you may have approval for 10 workers over 2 years but now want to submit requests to sponsor 4 auto mechanics and 2 auto electricians.

Individual Visa Applications are lodged after appropriate workers have been identified. This is by far the longest lead time of the three steps, and approval times may depend on the quality of documents submitted, the ability for DIAC to verify documents submitted, and more recently, lead times are impacted by the need for some applicants to undergo English language testing (IELTS).

In so far as DIAC and Employers are concerned, there is actually a fourth step to the program. DIAC has an active Monitoring program to ensure the sponsorship undertakings and the visa conditions are being met, and this is ongoing. Penalties apply for non compliance.

Sponsored workers are treated much the same as “local” staff. They pay income tax, are entitled to employer superannuation contributions, worker’s compensation coverage, and leave entitlements. They are not, however, covered by the Australian public health insurance scheme Medicare, and should take out private health insurance.

Conditions apply regarding minimum salary, overtime payments, payroll deductions, and general conditions of employment. These details will be explained to you by a Registered Migration Agent, but employers should make the effort to be conversant with the 457 visa scheme, and their obligations as Sponsors.