More Subclass 457 Visa Requirements Eased

Australia

Foreign nationals applying for subclass 457 visas are now subject to a lower minimum salary level to be eligible for a market salary rate exemption and a more flexible English language proficiency requirement, according to recently registered Legislative Instruments. Additionally, start-up businesses are now eligible to sponsor foreign workers for 18 months instead of twelve months. These changes are effective as of April 18, 2015.

More Flexibility for Market Rate Exemption Eligibility

Employers applying for subclass 457 visas must prove that the salary and other terms and conditions of employment are no less favorable than those offered to an Australian national performing equivalent work in the same location, known as the market salary rate requirement. If the applicant earns above a certain amount, the employer is exempt from the market salary rate requirement. The market salary rate exemption has been reduced to AU$180,000 from AU$250,000, consistent with the highest tax bracket threshold prior to July 1, 2013.

Easier English Language Proficiency Standards

The government has also reduced the minimum International English Language Test System score to an overall band score of 5.0, with a minimum of 4.5 in each part of the test (listening, reading, speaking and writing). This allows subclass 457 visa applicants to pass the test based on an overall test score rather than a score of 5.0 in each category.

Further, visa applicants can now take English language proficiency tests offered by other providers such as Occupational English Test (OET), Test of English as a Foreign Language internet-based test (TOEFL iBT), Pearson Test of English Academic (PTE), and Cambridge English: Advanced test (CAE).

Additionally, more applicants will be exempt from the English language proficiency test, as the exemption now includes those who studied English in a secondary or higher education program for a total of five years instead of five consecutive years.

Changes to the English language testing requirements apply to subclass 457 visa applications submitted on or after April 18, 2015 and applications pending as of that date.

Start-Up Business Sponsorship

Lastly, start-up businesses are now eligible to sponsor foreign workers for 18 months instead of twelve months.

What This Means for Employers and Foreign Nationals

Employers and foreign workers should benefit from the continued efforts of the Australian government to ease subclass 457 sponsorship criteria.

Employers or foreign workers interested in learning more about the reduced market rate exemption amount, English language proficiency requirements or start-up business sponsorship should contact their immigration professional to discuss the changes.

This alert is for informational purposes only. If you have any questions, please do not hesitate to contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].

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