Important Information Regarding Immigration Changes

Significant changes have been announced this year regarding the Subclass 457 visa program. Some of the changes have come into effect, while others will be introduced from 1 July 2009. Changes range from an increase in English standards for some occupations and the introduction of skills assessment for applicants from various countries through to greater requirements of employers in respect to training and the need to demonstrate the benefit to Australia of employing overseas workers.

Although these changes are wide-ranging, the value of overseas workers to Australia cannot be underestimated. Many industries still face a skills shortage, which people from overseas can meet.

As a service to our clients, ISA Group wishes to bring details of these changes to your attention. We also with to take this opportunity to allay any fears that the changes prohibit the future employment of overseas workers. The new requirements do however mean it is more important than ever to obtain professional advice regarding immigration matters.

Overview of Immigration Changes to Subclass 457 Visas

A summary of the changes announced this year is as follows:

Increase to the Minimum Salary Level (MSL) from 1 July 2009

From 1 July 2009, it will be necessary for all new and existing Subclass 457 visa holders to be given a 4.1 per cent increase to the MSL. This means that a Subclass 457 visa holder who is currently paid at the MSL of $43,400 must be paid at least $45,220 for a 38 hours week (also applies to the MSL applicable to IT positions and the MSL applicable to positions for which the English exemption is claimed and for which regional concessions apply).

From mid-September 2009, the MSL will be replaced by a market-based minimum salary for all new and existing 457 visa holders. The expected changes will mean that the MSL will be over-ridden by any relevant industrial instrument (e.g. award or agreement or market rate except where the market rate or award is lower than the gazetted MSL, for which instances the MSL will apply.

This change will mean that if you currently  employ a 457 worker in an occupation that is covered by an agreement award wage or an industry market rate that is higher than the MSL, you will be required to pay the higher amount.

Skills Assessment Requirements

Another change to be progressively introduced from 1 July 2009 is a requirement for Subclass 457 visa applicants from high-risk countries in trade occupations and chefs to undergo a formal skills assessment.

This requirement will be administered by the Department of Education, Employment and Workplace Relations (DEEWR) through Trades Recognition Australia (TRA) and will involve the assessment of skills against relevant qualifications from the Australian Qualifications Framework.

Further information regarding the new skills assessment process will be communicated to our clients when it becomes available.

Increased Language Requirement for Nominated Occupations

The English language requirement was increased to IELTS (International English Language Testing System) Band 5 for non-native born English speaking applicants in nominated occupations (ASCO 4 and chefs ASCO 3) for Subclass 457 visa applications lodged on or after 14 April 2009. (Note: ASCO 1, 2 & 3 occupations are not affected unless licensing and registrations are required.)

Labour Agreement Pathway for ASCO 5-7 Occupations

From 15 May 2009, ASCO 5-7 occupations can only be filled by overseas workers under a Labour Agreement. Employers with existing 457 visa holders in ASCO 5-7 occupations will need to put a Labour Agreement in place for the future employment of workers in these occupation.

This means that when sponsorship agreements or existing 457 visas for employees in ASCO 5-7 occupations expire, employers will be required to establish a Labour Agreement to re-employ those workers.

Labour Agreements are formal arrangements between an employer and the Federal Government that enable the recruitment of a number of overseas skilled workers (temporary and permanent). They will provide an avenue to employ workers in ASCO 5-7 occupations, but also can be advantageous if other conditions exist, e.g. if a large number of workers for relatively short term projects and tight timeframes are required.

ISA Group is experienced in establishing Labour Agreements and can provide guidance to employers who wish to pursue this option.

Training Benchmarks

The development of training benchmarks to clarify the existing requirement on employers to demonstrate a commitment to training local labour. This will need to be demonstrated at the time of applying for business sponsor approval.

Requirement to Attest

The requirement for sponsors to attest that they have a strong record of, or a demonstrated commitment to, employing local labour and non-discriminatory employment practices will be introduced soon. This measure will apply to applications for sponsorship under the Subclass 457 visa program. Further information will be provided when known.

DIAC Fee Increase

From 1 July, DIAC will increase its fees in respect to Subclass 457 visa applications as follows:

Business Sponsor -  $345    (previously $285)

Position Nominations - $70   (previously $60)

S/C 457 Visa Applications - $260   (previously $250)

Note: no fees are applicable for Labour Agreements

ISA Group’s Monitoring and Compliance Service

In response to the increasing obligations of business sponsors, and greater scrutiny by the Federal Government of sponsors, ISA Group has introduced a monitoring and compliance service. As part of this service, an ISA Group agent will undertake a thorough review of existing business sponsorships to ensure that all obligations are being met. We believe that such as assessment is an essential ‘health check’ that no business can afford to overlook.

If, through a Government review, a business is found to be in breach of its immigration obligations, not only does it face the threat of a costly fine, it may also face a ban on future sponsorships and existing overseas workers may be required to return to their country of origin. Such penalties could be debilitating for a business.

For more information regarding ISA Group’s monitoring and compliance service contact jackie@isa.com.au