Understanding the 457 visa lingo!

If you’re looking into being sponsored by an employer on a 457 visa, your head may be spinning! There are several buzz words surrounding 457 applications and we’ve explained them in simple terms.

Standard Business Sponsorship (also known as “SBS”): The employer needs to obtain an SBS before you (or anyone else) can be sponsored by them. It may be offered for 12 months or three years, depending on how long the company has been in operation.

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Training benchmark: When applying for the SBS, the employer must meet the 457 visa training benchmark. They need to show that they have spent 1% of the company’s payroll (over the past 12 months) on training Australian residents in their company. Alternatively, they can make a donation to an industry training fund of 2% of the company’s payroll (over the past 12 months). Lots of employers think they can’t meet the 1%, but most businesses do through on the job training. This involves capturing how a senior person in their business commits a portion of their day to day role to structured training of Australians. We have helped lots of companies with this step.

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Nomination of position: The employer must advise Immigration of the job that you will do under sponsorship. The job must be on the Consolidated Skilled Occupation List (CSOL). It is crucial that the right occupation is nominated. Some occupations are on the list for a 187 residency visa but not for a 457 visa. A nomination can be knocked back for something as seemingly small as nominating Civil Engineering Draftsperson instead of Civil Engineering Technician.  The employer may need to describe how the position fits into the organisation and why it is essential to the function of the business.

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Labour market testing: Since November 2013, some occupations require the employer to show that they have advertised for the position in the past 12 months. It is primarily trades, nurses and engineers where this needs to be shown. There is no minimum amount of time that this advertisement needs to run, not how long before the nomination. We can help with this.

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Minimum salary threshold (sometimes called “TSMIT”):  If you are sponsored on a 457 visa, you must be paid a minimum salary of $53,900 + superannuation for a 38 hour full time week. You can be paid more than this, but not less. You can’t include bonuses or commission in this amount.

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Market salary data: Immigration wants to make sure that the salary you are paid does not make you worse off that the average Australian doing the same role. If the sponsoring company employs people in the same job – and same location – then you must not be paid less than them. If there are no others in the same role, you need to provide relevant data from reputable Australian salary surveys, industry publications, or job seeker websites to show that you’re being paid a fair salary for the job.

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457 skill assessment: Depending on your passport and the nominated occupation you may need to undertake a skill assessment as part of the application. This can take anywhere from 4 – 16 weeks you need to know if you need it before you start the process.

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For more information on 457 visas, contact the team at True Blue Migration today!

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