Latest Reforms to the 457 Program
April 21, 2015
By: Hannah Brimson and Sharon Sobolev
The 457 Program is aimed at meeting Australia’s skills shortages. As such, the 457 Program has always been, and remains to be an important instrument in supporting Australia’s economy. With this in mind, the Australian government announced a review of the 457 Program to consider the integrity measures within the Program. Four independent industry specialists were appointed and their findings were presented to the Australian Government in late 2014.
On 15 March 2015, the Australian government provided its response which, by and large, supported the recommendations. Predominantly they looked at ways to reduce ‘red tape’ for employers while strengthening the Program’s integrity. The 457 Program will be strengthened through greater collaboration with the Australian Taxation Office and communication around sponsor’s obligations in using the 457 Program. Red tape will be reduced through refining departmental processes and sponsorship approvals.
Noteworthy recommendations for employers include:
Implementing a simplified training regime
One recommendation is to implement a more simplified training regime which would abolish the current training benchmarks and introduce an annual contribution to a training fund made by sponsors. The contribution would be proportionate to the number of 457 visa holders and the scale and size of the sponsor’s business. This would also streamline monitoring of the sponsor’s training obligation. The fund would be administered by the government to train Australians.
Sponsorship and obligations
Recommendations regarding sponsorship aim to simplify the sponsorship process. For example, sponsor classes should be combined to avoid unnecessary costs and multiplication.
Importantly, the notification period for certain events to occur is extended from the current 10 days to 28 days. This will include when a sponsored visa holder ceases employment. This change will be reflected in legislation from 18 April 2015.
It has also been recommended that the period of sponsorship approval be extended for established and ‘start up’ businesses to 5 years and 18 months respectively, and that the renewal process is simplified.
Relaxation of the English language requirement
The English language requirement is a critical component of the visa process to ensure visa holders understand their rights and obligations under the 457 Program. The recommendations seek to make the English language requirements less onerous and more practical. That is, by amending the IELTS score to an average score of 5.0, instead of the current score of at least 5.0 in each component of the test.
For those individuals that can demonstrate 5 years study in the English language, the recommendation is to allow 5 years of cumulative study rather than the current 5 yearsconsecutive study.
Conclusion
Some recommendations are likely to be implemented within months, whilst others that require further consultation and development are likely to be progressed during the coming year. We will continue to monitor the implementation of all recommendations.
If you have any questions on the above, please feel free to contact your local Fragomen advisor.
MARN 1172192 / MARN 0103844
