Home   Australia Immigration   Employer Sponsored visa   Business Long Stay

This is the most commonly used program for employers to sponsor overseas workers to work in Australia on a temporary basis.  From 14 September 2009, under the Subclass 457 visa program, there are no special arrangements for employers in regional areas across Australia.

Employers can be either:

• Australian businesses
• overseas businesses.

Who is this visa for?

This visa is for employers who would like to employ overseas workers to fill nominated skilled positions in Australia.

What does this visa let me do?

With this visa you can employ overseas workers for a period of between one day and four years.

With this visa those people you employ from overseas can:

• work in Australia for a period of between one day and four (4) years
• bring any eligible secondary applicants with them to Australia – secondary applicants can work and study
• after entering Australia, have no limit on the number of times they travel in and out of Australia.

How this visa works

For this visa you will need to be approved as an eligible sponsor. You will also need:

• an eligible nominated occupation
• an eligible nominated employee.

The process for obtaining a Subclass 457 – Business (Long Stay) visa is summarised in the table below.

Regional employer concessions

From 14 September 2009, employers in regional Australia will no longer be eligible for concessions in meeting the minimum salary and skill level requirements for their nominated positions under the Subclass 457 visa program.

Subclass 457 – market salary rates

From 14 September 2009, all sponsors of Subclass 457 visa holders  will be required to adhere to a new series of Sponsorship Obligations. For 457 sponsors, the obligation to ensure equivalent terms and conditions of employment will mean that they pay market salary rates to their overseas workers.

For current Subclass 457 visa holders, transitional arrangements will apply.

Validity periods

The validity period of the:

• sponsorship is three years
• nomination is 12 months
• visa is between one day and four years.

Applying for a new visa or changing employer

If you have an employee who wants to apply for a new visa (where their current visa is about to expire), the employee must lodge a new visa application.

From 14 September 2009, 457 visa holders who wish to change employer or position (within the validity of their current visa) will not be required to apply for a new Subclass 457 visa.

Visa labels

There are a number of eligible passports for travel to Australia without a visa label.

Medicare levy exemption

The Medicare Levy is a tax paid through the personal tax system in Australia. People granted temporary residence visas may be subject to the Medicare Levy. The Medicare Levy is based on the taxable income of the individual for each income tax year.

If you are from a country that has no reciprocal health care arrangements with Australia, you and your dependents, who have not been entitled to Medicare benefits can seek an exemption from the Medicare levy in your end of financial year income tax return. Your lack of entitlement to Medicare benefits must be certified by the Minister for Health.

If you are from a country with reciprocal health care arrangements with Australia, Medicare assistance is available for immediately necessary treatment. Nationals from reciprocal countries are therefore not exempt from the Medicare levy.

More information

Important changes affecting the Subclass 457 Business (Long Stay) visa program have progressively come into effect from 1 April 2009.

Eligibility

These pages outline the requirements that must be met by all parties participating in this program.

• Employer
• Employee
• Nomination
• Secondary applicant

Employer Eligibility

On this page

• Domestic business sponsors
• Overseas business sponsors
• Employing local labour and non-discriminatory employment practices
• No adverse information

An employer needs to be approved as a sponsor in order to employ skilled workers from overseas. The following requirements must be met for an employer to become a sponsor.

Domestic business sponsors

If you are an employer with a business that operates in Australia, you must meet benchmarks relating to the training of Australian citizens and permanent residents.

Overseas business sponsors

If you are an employer with a business that has no formal operating base or representation in Australia, you may apply to bring employees to Australia to do one of the following:

• establish a business operation in Australia
• Fulfil obligations for a contract or other business activity in Australia.

Note: Overseas Business Sponsors do not need to be operating in Australia but may need to meet other employer eligibility requirements.

Employing local labour and non-discriminatory employment practices

From 27 June 2009, there has been a requirement for sponsors under subclass 457 visa program to attest that they have a strong record of, or a demonstrated commitment to:

• employing local labour
  and
• non-discriminatory employment practices.
  
  

No adverse information

To meet this requirement, there must be nothing adverse known about the business.

Adverse information includes the conviction, finding of non-compliance, administrative action, investigation, legal proceedings or insolvency. Adverse information is relevant to a person's suitability as an approved sponsor, when it occurred within the previous three years.

Employee Eligibility

• Health requirements
• Health insurance requirements
• English language proficiency requirements
• Character requirements
• Limitation of applications
• Skills assessment
• Australian Values Statement

As an employee, you must meet all the following requirements:

• be sponsored by an employer to fill a nominated position
• have skills, qualifications, experience and an employment background which match those required for the position
• demonstrated English language proficiency  
• be eligible for any relevant licences or registration required for the nominated position
  
  
• you can apply for this visa while you are in Australia, only if the last visa you held is not a Transit visa (Subclass 771) or a Special Purpose visa.

Health requirements

There are a number of health requirements that must be met by health industry workers and their accompanying family members.
Further information regarding health requirements for visa applicants.
Health examinations for visa applicants outside Australia must be conducted by an approved overseas doctor.

Health insurance requirements

Subclass 457 visa holders granted visas after 14 September 2009 will be required to maintain arrangements for health insurance. 

English language proficiency requirements

From 14 September 2009, all primary Subclass 457 visa applicants who are sponsored by a Standard Business Sponsor must demonstrate that they have English language proficiency that is equivalent to an International English Language Testing System (IELTS) test score of at least 5 in each of the four test components of speaking, reading, writing and listening.  Prior to 14 September 2009, applicants required an average test score of at least 5 across the four test components.

Where the nominated occupation requires a higher level of English (equivalent to IELTS test score of more than 5 in each of the four test components) because it forms part of that occupation’s registration, licensing or membership requirement, the visa applicant must have at least the standard of English language proficiency required for the grant of that registration, licence or membership.

This requirement affects all new subclass 457 visa applications from 14 September 2009, as well as visa applications which were made before but not decided by 14 September 2009.

Character requirements

You must meet all character requirements.

Limitation of applications

If you are in Australia, your current visa may have restrictions which will prevent you from applying for this visa.

Skills assessment

Australia requires visa applicants to have the skills required for their nominated positions. Where necessary for safety or to prevent fraud, Australia will undertake more extensive skills assessments to confirm skills claimed by applicants.

Australia requires formal skills assessments of some trade occupations. This arrangement commenced on 1 July 2009 and will be extended as capacities are increased.

More information on this new skills assessment process is available on the Trades Recognition Australia website.

Australian Values Statement

If you are aged 18 years or over, you must declare that you will respect Australian values and obey the laws of Australia. For this visa, the values statement is included in the general declaration section of the application form. When you sign the application form it means you will also be signing the values statement. You will not be required to have read the Life in Australia book, but may do so if you wish.

You are also encouraged to gain an understanding of Australia, its people and their way of life, before applying for this visa. 

Nomination Eligibility

On this page

• Employer requirements
• Position requirements
• Subclass 457 - market salary rates
• Regional employer concessions

As an employer, you must lodge a nomination application. The nomination application must provide details about the vacant position and employee who will fill the position.

Employer requirements

To nominate a position you must:

• have been approved as a business sponsor
  or
• have already lodged an application to become an approved business sponsor
  or
• lodge an application to become a business sponsor at the same time that you lodge the nomination application.

Position requirements

A nominated position must be in:

• your business or related business;
• relation to an approved occupation.

Approved occupations

There is a list of approved occupations - check this list to ensure that your nominated position matches one of the occupations on the list.

English language

Certain subclass 457 visa applicants will need to meet the English language requirement.

Subclass 457 – market salary rates

From 14 September 2009, all sponsors of Subclass 457 visa holders (457 sponsors) will be required to adhere to a new series of Sponsorship Obligations. For 457 sponsors the obligation to ensure equivalent terms and conditions of employment will mean that they pay market salary rates to their overseas workers.

Regional employer concessions

From 14 September 2009, employers in regional Australia will no longer be eligible for concessions in meeting the minimum salary and skill level requirements for their nominated positions under the Subclass 457 visa program.

Secondary Applicant Eligibility

• Partner
• Dependent child
• Other dependent relatives
• Subsequent visas for secondary Subclass 457 visa holders
• Health requirements
• Health insurance requirements
• Character requirements
• Work and study
• Australian Values Statement

As a primary Subclass 457 visa holder, the following people may apply to accompany and stay with you in Australia as secondary visa holders:

• your partner
• your dependent child or your partner's dependent child
• your other dependent relatives or your partner's other dependent relatives.

Partner

A partner is your spouse (the person you are married to) or de facto partner (including same-sex partners).

Dependent child

A dependent child is the child or stepchild, of you or your partner. You or your partner must have legal responsibility for the child. The child must:

• not be married, engaged to be married or in a de facto relationship and
• be under 18
  or
• if they have turned 18, are wholly or substantially reliant on you or your partner for their basic needs, or are incapacitated for work.

Other dependent relatives

Other relatives of you or your partner may be considered in the application if they meet all of the following:

• they have no other relative able to care for them in their own country
• they are currently not married, engaged or in a de facto relationship
• they are usually resident in your household
• they rely on you for financial support for their basic needs
• you have supported them for a substantial period
• they rely on you more than any other person or source.
  Example: An aged, unmarried relative.

Note: You must provide details of all children or other dependent relatives aged 18 years or over, regardless of whether or not they are included in the application. For all dependent relatives 18 years of age or over, Form 47A must be completed and attached to your application.

Subsequent visas for secondary Subclass 457 visa holders

Certain secondary Subclass 457 - Business (Long Stay) visa holders can now, in a subsequent Subclass 457 visa application, continue to be the member of the family unit (MOFU) of a primary holder of a Subclass 457 visa. Such secondary visa holders will not have to satisfy the general MOFU requirements if they satisfy the requirements described below.

At the time of decision on the subsequent Subclass 457 visa application the person must meet the following:

• be under the age of 21
• not be the spouse or de facto partner of another person.

In addition, to be eligible for the MOFU extension, the person must have been granted their initial Subclass 457 visa on the basis that they were the MOFU (other than a partner) of the primary Subclass 457 visa holder.

A person will not be able to satisfy the new requirements if they were granted an initial Subclass 457 visa on the basis that they were one of the following:

• a dependent child of the partner of a primary Subclass 457 visa holder
• a dependent child of a dependent child of the partner of a primary Subclass 457 visa holder
• a relative of the partner of the primary Subclass 457 visa holder
• a dependent child of an interdependent partner of a primary Subclass 457 visa holder

and the partner relationship is no longer in existence at time of decision on the subsequent Subclass 457 visa application.

Health requirements

All secondary applicants must meet the health requirements.

Health insurance requirements

From 14 September 2009, all new Subclass 457 visa holders will be required by law (a condition of their visa) to maintain adequate health insurance for the length of their visa. 

Applicants for 457 visas will need to provide evidence that they have obtained adequate health insurance before their visa can be approved.

Character requirements

All secondary applicants must meet character requirements.

Work and study

Any secondary applicants granted this visa are given full work and study rights.

Australian Values Statement

All visa applicants aged 18 years or over, must declare that they will respect Australian values and obey the laws of Australia. For applicants of this visa, the values statement is included in the general declaration section of the application form. By signing the form applicants will also be signing the values statement. Applicants for this visa will not be required to have read the Life in Australia book, but may do so if they wish.

Visa applicants are also encouraged to gain an understanding of Australia, its people and their way of life, before applying for this visa.

Obligations

These pages provide information about the obligations of each party participating in this program.

• Employer
• Employee

Employer Obligations

On this page

• Impact on overseas based standard business sponsors
• Monitoring
• Sanctions
• Subclass 457 – market salary rates

There are nine sponsorship obligations that sponsors of Subclass 457 visa holders (457 sponsors) must comply with. These are set out below.

Impact on overseas based standard business sponsors

The reforms that came into effect on 14 September 2009 under the Migration Legislation Amendment (Worker Protection) Act 2008 and associated regulations also impact upon overseas based standard business sponsors.

Monitoring

Employers who are approved as a sponsor will be monitored to ensure they are complying with their sponsorship obligations.

Sanctions

There is action the department can take if a Subclass 457 sponsor fails to satisfy a sponsorship obligation.

Subclass 457 – market salary rates

From 14 September 2009, all sponsors of Subclass 457 visa holders (457 sponsors) will be required to adhere to a new series of sponsorship obligations. For 457 sponsors, the obligation to ensure equivalent terms and conditions of employment will mean that they pay market salary rates to their overseas workers.

For current Subclass 457 visa holders, transitional arrangements will apply.

Where transitional arrangements apply, information on the Minimum Salary Level is available.

Employee Obligations

• Visa conditions
• Health insurance
• Subclass 457 – market salary rates

You must notify the department of any change in your circumstances.

If you cease employment, you must do one of the following:

• find another employer who is willing to nominate you
• apply for another type of substantive visa
• leave Australia within 28 days unless your visa expires before that time, in which case you must leave Australia prior to visa expiry.

Visa conditions

If your application for a temporary visa is approved, the following visa condition, known as Condition 8107, will be applied to your visa. This visa condition relates to work conditions and stipulates that you must work:

• in the occupation you were nominated for; and
• for the sponsor, or an associated entity of the sponsor (except for exempt occupations). Further information is available on ComLaw.
  If you do cease employment, you must not cease for more than 28 consecutive days. You are considered to have ceased employment when either you, or your employer gives notice of intention to cease employment and the date of the notice of intention to cease employment has passed. If more than 28 consecutive days have passed since the date in the notice of intention to cease employment, you may be in breach of Condition 8107 and may have your visa cancelled. In the event that you abandon your employment, or are absent without leave (AWOL), you may be considered to have ceased employment.

If your visa is about to cease, and you want to apply for another Subclass 457 visa, you must lodge a new visa application.

From 14 September 2009, Subclass 457 visa holders who want to change employers (within the validity of their visa) will not be required to apply for a new Subclass 457 visa, however a nomination must be lodged and approved by your new sponsor.

Health insurance

From 14 September 2009, under visa Condition 8501, all new Subclass 457 visa holders are responsible for all health costs for themselves and their family. They will be required by law to maintain adequate insurance for these health costs for the length of their visa. Applicants for Subclass 457 visas will need to provide evidence that they have obtained adequate insurance before their visa can be granted.

For Subclass 457 visa holders, approved prior to 14 September 2009, the sponsor is still responsible for all medical or hospital expenses arising from treatment administered in a public hospital for the duration of the visa (other than expenses that are met by health insurance or reciprocal health care arrangements).

Subclass 457 - market salary rates

From 14 September 2009, all sponsors of Subclass 457 visa holders will be required to adhere to a new series of sponsorship obligations. For 457 sponsors, the obligation to ensure equivalent terms and conditions of employment will mean that they pay market salary rates to their overseas workers. For Subclass 457 visa holders whose nomination or visa applications were approved prior to 14 September 2009, transitional arrangements may apply.

 Applying for this Visa

If the employer and employee are eligible willing and able to meet their obligations under the visa, they can commence the 3-step application process.

Step 1 - Employer Applies to be a Sponsor

The employer must complete an application to become a sponsor.

Step 2 - Employer Nominates a Position

The employer must nominate the position to be filled.

Step 3 - Employee Applies for a Visa

The employee must apply for a visa to be allowed to work in Australia.

Applying for a new visa

If you have an employee who wants to apply for a new visa (where their current visa is about to expire), the employee must lodge a new visa application.

From 14 September 2009, 457 visa holders who want to change sponsors or nominated positions (within the validity of their current visa) will not be required to apply for a new Subclass 457 visa.