457 changes July 1 2009
The Department of Immigration and Citizenship (DIAC) intend to make significant changes to the “457″ Business (Long Stay) 4 year Temporary visa. This visa is one of the most prolific vehicles used by those with a skill, allowing them to immigrate to Australia. The “457″ allows a relatively speedy way of entering Australia on the Skill Program, without having the relevant skill assessed by the Recognised Assessing Authority which can be found on Form 1121i.
One of the criteria which must be met is the Minimum Salary Level (MSL). The MSL is always being reviewed by DIAC to enable those on the “457″ to keep pace with the Australian workers.
On 1st July 2009 DIAC will be increasing the MSL by 4.1%.
As an example, those on Schedule “A”, which is the majority of the skilled work force, this will take the salary from the current $43,440.00p.a. before tax, but does not include the 9% Superannuation, to $45,222.00 ($869.65 p.w.) as a “Base Salary”. The 9% Superannuation must be added to this, making the Salary Package $49,290.00 ($947.90 p.w.). Any further additions such as Living Away from Home, must be added to this.
Schedule “B” employees are those in the “IT” Industry with ASCO codes 1224-11 and 2231. Their base salary will increase from $59,477.00 before Tax and Super to 61,916.00.
Schedule “C” employees are those who work in Regional Australia who are represented in Schedule “A”, with a few exeptions not listed here. The Base Salary will go from $39,100.00 before Tax and Super to $40,705.00.
Schedule “D” employees are those who work in Regional Australia who are represented in Schedule “B”. Their Base Salary will go from $53,530.00 before tax and Super to $55,725.00.
In September 2009, there will be a further adjustment to the MSL to ensure overseas workers are not exploited and the local wage and salary levels are not undermined.
There has already been the increase in the required English language level via IELTS from an average of 4.5 to an average of 5.0.
From 1st July 2009, DIAC will be gradually introducing formal assessment of skills in the “457″ visa for immigrants from high risk countries in Trade Occupations as well as Chef.
Employers using the “457″ visa as a vehicle to hire staff, must demonstrate in the future, their commitment to hiring of local Australian Citizens, Australian Permanent Residents or Eligible New Zealand Citizens.
Employers using the “457″ visa as a vehicle to hire staff, must demonstrate in the future, their commitment to hiring of Apprentices or Trainees as well as their commitment to the training of the local Australian Citizens, Australian Permanent Residents or Eligible New Zealand Citizens.
The extension of the labour agreement pathway to all ASCO 5-7 occupations, to ensure that the employers using the “457″ visa program to access these occupations satisfy obligations on local training and employment.
