
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
Podcast
Associates Stephanie D. Weaver and Julia Manacher examine immigration issues emerging in a popular reality television series, including K-1 visa denials, consular non-reviewability, fraud findings and changing adjudication policies.
Blog post
Manager Dr. Adela Schmidt examines common misconceptions in German citizenship law, including birthright citizenship, dual citizenship, citizenship by descent and naturalization processing, and explains why eligibility often depends on specific legal requirements, timelines and documentation.
Awards
Partner Audrea Golding, Senior Associate Kyle Sommer and Senior Talent Development Director Wendy Milici have been named finalists in the 2026 TLC Lions Human Awards Americas, recognizing their contributions to human-centered leadership, workplace culture and inclusion.
Media mentions
Fragomen and SICPA have launched a global joint venture to develop an end-to-end digital identity platform that enables secure identity verification, document authentication and verifiable credential management.
Media mentions
Senior Counsel Mitch Wexler discusses how potential changes to H-1B visas, employment-based green cards and OPT could impact employers’ workforce planning and compliance obligations.
Media mentions
In a Leaders in Motion interview with World Business Travel Forum, Partner Ali Haider and Nomadic CEO Carsten Østberg discuss recent travel and mobility developments across the Middle East and practical considerations for employers managing cross-border talent in the region.
Media mentions
Partner Rachel Beardsley explains how new DHS guidance clarifies that dairy employers may use the H-2A program when they can demonstrate a temporary or seasonal labor need.
Fragomen news
Fragomen and SICPA announced the formation of a global joint venture to advance next-generation digital identity solutions for governments, enterprises and individuals.
Blog post
Senior Associate Kyle Sommer and Adam Schwartz, Director in the Global Mobility practice at Andersen, discuss how immigration and tax considerations intersect across common US immigration classifications and why early coordination can help travelers, employers and advisors reduce compliance risks and make more informed mobility decisions.
Podcast
In this episode of The Immigration Conversation, Senior Associates Sarah Melnick and Kimberly Elmazi discuss key considerations for foreign nationals planning international summer travel, including visa appointment planning, document preparation, consular interviews, port-of-entry procedures and I-94 review.
Podcast
UK Government Affairs Strategy Director Shuyeb Muquit is joined by Jonathan Thomas of the Social Market Foundation, Dr. Ben Brindle of the Migration Observatory, University of Oxford and Steve McCauley of the University of Cambridge to discuss what a new UK Prime Minister could mean for immigration policy, employers and workforce mobility.
Podcast
Associates Stephanie D. Weaver and Julia Manacher examine immigration issues emerging in a popular reality television series, including K-1 visa denials, consular non-reviewability, fraud findings and changing adjudication policies.
Blog post
Manager Dr. Adela Schmidt examines common misconceptions in German citizenship law, including birthright citizenship, dual citizenship, citizenship by descent and naturalization processing, and explains why eligibility often depends on specific legal requirements, timelines and documentation.
Awards
Partner Audrea Golding, Senior Associate Kyle Sommer and Senior Talent Development Director Wendy Milici have been named finalists in the 2026 TLC Lions Human Awards Americas, recognizing their contributions to human-centered leadership, workplace culture and inclusion.
Media mentions
Fragomen and SICPA have launched a global joint venture to develop an end-to-end digital identity platform that enables secure identity verification, document authentication and verifiable credential management.
Media mentions
Senior Counsel Mitch Wexler discusses how potential changes to H-1B visas, employment-based green cards and OPT could impact employers’ workforce planning and compliance obligations.
Media mentions
In a Leaders in Motion interview with World Business Travel Forum, Partner Ali Haider and Nomadic CEO Carsten Østberg discuss recent travel and mobility developments across the Middle East and practical considerations for employers managing cross-border talent in the region.
Media mentions
Partner Rachel Beardsley explains how new DHS guidance clarifies that dairy employers may use the H-2A program when they can demonstrate a temporary or seasonal labor need.
Fragomen news
Fragomen and SICPA announced the formation of a global joint venture to advance next-generation digital identity solutions for governments, enterprises and individuals.
Blog post
Senior Associate Kyle Sommer and Adam Schwartz, Director in the Global Mobility practice at Andersen, discuss how immigration and tax considerations intersect across common US immigration classifications and why early coordination can help travelers, employers and advisors reduce compliance risks and make more informed mobility decisions.
Podcast
In this episode of The Immigration Conversation, Senior Associates Sarah Melnick and Kimberly Elmazi discuss key considerations for foreign nationals planning international summer travel, including visa appointment planning, document preparation, consular interviews, port-of-entry procedures and I-94 review.
Podcast
UK Government Affairs Strategy Director Shuyeb Muquit is joined by Jonathan Thomas of the Social Market Foundation, Dr. Ben Brindle of the Migration Observatory, University of Oxford and Steve McCauley of the University of Cambridge to discuss what a new UK Prime Minister could mean for immigration policy, employers and workforce mobility.

