Several changes were announced on 14 September 2009 by the Department of Immigration and Citizenship regarding the 457 visa.

Market salary rates of pay and equivalent terms and conditions
From 14 September 2009, all sponsors of Subclass 457 visa holders (457 sponsors) will be required to provide equivalent terms and conditions of employment which will mean that they pay their overseas workers market salary rates. For current Subclass 457 visa holders, transitional arrangements will apply.

The move to market salary rates means that sponsored Subclass 457 visa holders will benefit from the same terms and conditions of employment as are provided to an equivalent Australian undertaking equivalent work in the same workplace at the same location.

How will market salary rates be assessed?
Where there is an equivalent Australian in the workplace, the market salary rate will be determined by the industrial arrangements that apply to this worker.

Where there is no Australian performing equivalent work in the same workplace, the employer may demonstrate the market rate by reference to the applicable modern award or collective agreement. In absence of an award of collective agreement the employer is to provide a range of evidence to substantiate the market salary rate.

The Temporary Skilled Migration Income Threshold – currently $45,220 per annum
The Temporary Skilled Migration Income Threshold (TSMIT) commences on 14 September 2009. The TSMIT is intended to ensure that all Subclass 457 visa holders have sufficient income so that they can independently provide for themselves in Australia.

Subclass 457 nominations and the TSMIT
The TSMIT has no bearing on what the Subclass 457 visa holder should be paid in the workplace. A nomination under the Subclass 457 visa program will be refused in most cases if the market salary rate for the nominated position is below this level of income.

For the purposes of a Subclass 457 nomination it is not possible for a 457 sponsor to inflate a nominated worker's proposed salary in order to pass or meet the TSMIT requirement. It is the market salary rate for the nominated position that is compared to the TSMIT. The claimed intended salary in the nomination should reflect the terms and conditions of employment.

Employers Obligation
Employer obligations include cooperating with inspectors, ensure equivalent terms and conditions of employment, pay travel costs to enable sponsored persons to leave Australia, pay costs incurred by the Commonwealth to locate and remove unlawful non-citizen and keep records.

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

If the sponsor ceases your employment, you must do one of the following:

• find another employer who is willing to nominate you
• apply for another type of substantive visa; or
• 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 work condition will be applied to the you. You must work:

• in the occupation you were nominated for
• for the sponsor, or an associated business of the sponsor (except for medical practitioners and general managers).

If you cease employment, you can work for your previous sponsor.

If you cease employment altogether, the period you cease employment must not exceed 28 consecutive days.

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, current 457 visa holders who want to change employers (within the validity of their current visa) will not be required to apply for a new Subclass 457 visa.

Health insurance
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 granted.

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.

For any assistance with a 457 visa, or any other temporary visa or permanent visa solution, please start the process with LIVE IN australia.com today.