CHANGES TO 457 VISA SPONSORSHIP

Following changes late last year to how 457 Visa Sponsorships can be arranged, a degree of confusion has arisen as to what processes Practices can take when wishing to sponsor someone from an offshore background.

The changes only relate to Practices using the services of a Sponsoring Agent, which creates a “3-way scenario” of End User Company – Sponsoring Agent – Sponsored Employee. In this case, the sponsoring agent has a number of visas available for which they have pre-applied. And then sponsorship of the person occurs when a suitable offer of employment is made by the end user practice.

The advantage of this method is that the End User Practice does not have to go through a relatively rigorous process to satisfy the requirements of the Department of Immigration and Citizenship (DIAC), as these responsibilities are primarily carried out by the Sponsoring Agent.

The changes relate to the process a Sponsoring Agent must now undertake, which involves being accredited by DIAC and holding a Labour Agreement that is verified by DIAC. Many Sponsoring Agents are in the process of being awarded these Labour Agreements; however to our knowledge, only 2 have been formalized in Australia at this point. It is our understanding that even when these Labour Agreements are more widespread, increased costs and industry-specific classifications (e.g. a Sponsoring Agent that may be classified to engage only IT personnel) will remove the ease that this alternative provided in the past.

These changes do not affect the direct sponsorship method - where the End User Practice directly undertakes the sponsorship process. And given the recent changes, this appears to be the most likely chance of success if a practice were keen to engage professionals from offshore.

Again, these changes do not relate to travellers on Working Holiday Visas, and would only impact if a practice wished to retain the services of a traveller on a long-term basis at the expiry of the Working Holiday Visa.

For any further information, please contact Bruce Whetters in our Melbourne office on: (03) 9349 1055.

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