There is effectively a 3-stage process to follow in sponsoring foreign workers under the 457 scheme.
Stage 1 – Apply to become an approved business sponsor
To successfully get through this stage you will need to confirm some information on the business. We can take the information over the phone or via email to establish your eligibility. Information will include:
Business structure (I.e. Pty, Sole Trader etc)
- Legal name
- ABN, ACN
- Date of commencement of trade
- Recent financial year’s turnover, info on how many on current payroll – expats vs. locals etc
- Gross payroll $
- And then some info on what your training plans are for the next 12 months.
? Training information required will show that you are committed to provide training to your staff (only required for staff that are Australian Citizens or Permanent Residents), and that you have provided a level of training to your Australian staff to the value of 1% of your payroll if you are training them internally, or 2% if you are using an industry training fund. If your business has not been trading for 12 months, you will need to submit an auditable plan that you will meed these requirements in the next 12 months. Some brief info on this:
What is payroll?
Payroll is the amount of money an employer pays in wages to their employees, in the 12 months prior to application lodgement. Payroll expenditure includes any wages, remuneration, salary, commission, bonuses, allowances, superannuation contributions (mandatory or otherwise) or eligible termination payments that are defined as wages in the Act relating to payroll tax in the relevant State or Territory.
What if a sponsorship applicant has been trading in Australia for less than 12 months?
Applicants who have been trading in Australia for less than 12 months can submit an auditable plan to meet either of the training benchmarks.
What needs to be included in an auditable plan?
An auditable plan must clearly identify how the applicant intends to meet one of the training benchmarks. An auditable plan must relate to the immediate future (within the next 12 months), clearly articulate the forecast payroll for the next 12 months, the intended expenditure towards Training Benchmark A or Training Benchmark B, and show a clear intent to implement the plan.
For applicants submitting an auditable plan to meet Training Benchmark B, the plan must clearly articulate the type and duration of training, and the estimated cost in delivering the training.
From the 1st July 2013, you will also be expected to elect a nomination ceiling which will be used by the DIAC to determine how many subclass 457 temporary work (skilled) visa holders your business can nominate. We suggest you read our update on this major change here
The list looks long, but it will literally take a couple of minutes to collate if it is handy, and we will assist in the process.
Stage 2 – Nominate the position
This is where Global Enterprises makes a business case on your behalf to the Department of Immigration and Citizenship (DIAC) to confirm that your business can sponsor. Some questions you may wish to ask yourself on this are:
- How did you find the people you are looking to sponsor – was it through a Seek ad, or some method of advertising?
- Were you unable to find anyone local with the same skill set? If so, what is your evidence that you have tried? This is a key point from 1st July 2013 as the federal government passed a bill that requires labour market testing (LMT). Whilst LMT does not commence until November 2013, from the 1st July 2013 DIAC are putting more focus on the genuineness of the position to ensure that the nomination position has not been created solely for assisting someone to obtain a visa. Information on why the position is necessary to the business is something that employers will need to think more about. Is it due to attrition? Is it due to more contracts being picked up by the company?
- Are you looking to pay a salary equal to, or more than $53,900 per year for the positions? Also have you ensured that the rate you are paying is in line with the market rate? Market rate is a key element to the 457 system, and ensures that you have benchmarked your 457 visa nominee’s salary against a local employee in the same position or some other form of benchmarking (including job boards, salary surveys such as the Robert Walters survey etc).
Stage 3 – The applicant applies for the visa
This is where we obtain all the required information from the applicants to ensure they meet the criteria for the visa –I.e. No criminal record, degrees, work experience etc.
So what this process will require from you:
– Assistance to Global Enterprises Group in providing the information required for the above steps
– All relevent fees and charges are listed here
For more information on this visa, please contact us, or see the appropriate page on the website of the Department of Immigration and Citizenship here:
Other Related Corporate Migration Services.
Standard Business Sponsorship Application
For businesses that are applying for a business to be approved to sponsor foreign skilled workers under the 457 scheme, they need to first be approved as a ‘standard business sponsor’ or possess a labour agreement. Global Enterprises Group works
together with the business to ensure eligibility, gather all appropriate documentation, prepare and lodge the application for approval as a standard business sponsor with the Department of Immigration and Border Protection.
Compliance and Audit Preparation Services
The Department of Immigration and Border Protection often conducts audits on standard business sponsors and employers to ensure they are meeting their obligations. Global Enterprises Group can assist employers in maintaining their compliance in areas such as; market rates for employees, appropriate annual training expenditure and cessation notices. We can also assist those who have been visited by the department or for those who have received a NOITA (notice of intention to take action) from the department.
We also provide Migration Review Tribunal services that are related to employer sponsored visas.