
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].
MARN 0004980
Explore more at Fragomen
Awards
Fragomen is recognized with multiple honors at the 2026 FEM Americas EMMAs, including Outstanding Agility & Crisis Management as a Service Provider and Thought Leadership – Best Survey or Research Study of the Year for the Worldwide Immigration Trends Report 2026.
Blog post
Destination Services Director Christine Sperr examines how housing market reforms, rent stabilization measures and cost-of-living dynamics in Saudi Arabia are influencing workforce mobility, compensation planning and long-term settlement strategies under Vision 2030.
Visas
Manager Dr. Adela Schmidt explains how German authorities assess past travel and business activities and why suspected unauthorized work during prior visits can lead to visa refusals and temporary entry bans.
Podcast
Partner Cosmina Morariu and Senior Director Leah Rogal discuss the mission of Fragomen’s Center for Strategy and Applied Insights and how it helps organizations and governments navigate evolving immigration policy and global talent mobility challenges.
Fragomen news
Fragomen and Papaya Global announce a strategic partnership combining workforce technology and immigration capabilities to help organizations simplify global mobility, enhance compliance and manage cross-border workforces through a more integrated, technology-enabled approach.
Video
Latin America & the Caribbean Managing Partner Leonor Echeverria explores how Latin America’s evolving immigration landscape offers accessible and flexible residence pathways for foreign nationals, highlighting key visa options, regional trends and the growing role of digital modernization across the region.
Podcast
Senior Associate Stephanie Weaver and Associate Julia Manacher continue their discussion on immigration law in popular culture, examining how television and media portray immigration processes and the realities behind common immigration storylines.
Media mentions
Partner Kevin Miner discusses how proposed H-1B salary threshold increases may raise employer costs and influence hiring strategies for specialized talent across industries.
Video
In this Mobility Minute, Manager Pierangelo D’Errico discusses Portugal’s newly approved nationality law changes and the potential impact on Golden Visa applicants and other foreign residents.
Media mentions
Partner Rajiv Naik highlights the importance of transparency, clear guidance and human oversight as AI use expands in UK immigration tribunals.
Video
Senior Associate Tuğba Özyakup outlines how Europe’s Entry and Exit System (EES) introduces digital tracking of non-EU short-stay travel across the Schengen Area, requiring more proactive planning, accurate record-keeping and awareness of increased border processing times to avoid delays and overstay risks.
Awards
Fragomen is recognized with multiple honors at the 2026 FEM Americas EMMAs, including Outstanding Agility & Crisis Management as a Service Provider and Thought Leadership – Best Survey or Research Study of the Year for the Worldwide Immigration Trends Report 2026.
Blog post
Destination Services Director Christine Sperr examines how housing market reforms, rent stabilization measures and cost-of-living dynamics in Saudi Arabia are influencing workforce mobility, compensation planning and long-term settlement strategies under Vision 2030.
Visas
Manager Dr. Adela Schmidt explains how German authorities assess past travel and business activities and why suspected unauthorized work during prior visits can lead to visa refusals and temporary entry bans.
Podcast
Partner Cosmina Morariu and Senior Director Leah Rogal discuss the mission of Fragomen’s Center for Strategy and Applied Insights and how it helps organizations and governments navigate evolving immigration policy and global talent mobility challenges.
Fragomen news
Fragomen and Papaya Global announce a strategic partnership combining workforce technology and immigration capabilities to help organizations simplify global mobility, enhance compliance and manage cross-border workforces through a more integrated, technology-enabled approach.
Video
Latin America & the Caribbean Managing Partner Leonor Echeverria explores how Latin America’s evolving immigration landscape offers accessible and flexible residence pathways for foreign nationals, highlighting key visa options, regional trends and the growing role of digital modernization across the region.
Podcast
Senior Associate Stephanie Weaver and Associate Julia Manacher continue their discussion on immigration law in popular culture, examining how television and media portray immigration processes and the realities behind common immigration storylines.
Media mentions
Partner Kevin Miner discusses how proposed H-1B salary threshold increases may raise employer costs and influence hiring strategies for specialized talent across industries.
Video
In this Mobility Minute, Manager Pierangelo D’Errico discusses Portugal’s newly approved nationality law changes and the potential impact on Golden Visa applicants and other foreign residents.
Media mentions
Partner Rajiv Naik highlights the importance of transparency, clear guidance and human oversight as AI use expands in UK immigration tribunals.
Video
Senior Associate Tuğba Özyakup outlines how Europe’s Entry and Exit System (EES) introduces digital tracking of non-EU short-stay travel across the Schengen Area, requiring more proactive planning, accurate record-keeping and awareness of increased border processing times to avoid delays and overstay risks.

