Australia: Restricted Policies for Subclass 400 Visa Released

The Australian government has restricted its policies on the subclass 400 visa. First, case  officers will now more closely scrutinize applications where the duration exceeds three months in any given 12-month period. While the subclass 400 visa allows for a period of stay of up to six months, with the new policy, the holder is expected to stay in the country for only three months or less unless a strong business case can be demonstrated; though if the applicant has previously held a subclass 400 visa in any 12-month period and applies for another subclass 400 visa, the authorities may consider granting the remaining balance of the normal period of stay of three months. Secondly, officers will more closely review applications submitted by individuals from countries with significant pay disparity to Australia. In scrutinizing whether a company is attempting to use the Subclass 400 program for a low-paid substitute workforce, the authorities may look into the company's history, particularly the number and nature of recent applications lodged, and consider the other applications filed by the same company for the same purpose. 

The newly-issued guidance also highlights that employers seeking to use the subclass 400 visa to facilitate the entry of lower-skilled foreign workers, should instead be directed to use the Temporary Skill Shortage subclass 482 (TSS 482) program under the Labour Agreement stream. This ensures that the Australian labor market and pay conditions are upheld while reducing the risk of exploitation. If there is an urgent need for a senior executive of a multinational company to travel to Australia on short notice to perform ongoing work, and there is evidence that the individual has filed a TSS 482 visa application or been nominated for a TSS 482 visa, employers may consider filing a subsequent subclass 400 visa application under the Australia’s Interest stream to allow the individual to enter Australia prior to the TSS 482 visa being finalized. Under this stream, applicants must prove the need for urgent entry to Australia. They must demonstrate that the seniority of the role and nature of the organization is such that Australia’s interest is likely to be affected if the position is left unfilled.