10 Useful Things to Know About Your Australian 457 Visa

 

Knowing the below information about your 457 visa can really help you protect your rights as an employee and ensure that your sponsoring employer complies with its obligations. You will also find useful information in relation to what happens when you need to change employer, and when you may be able to apply for Australian permanent residency.

 

1) Your employer’s obligation to pay you the Australian market rate

In the nomination application for your 457 visa, your employer needs to state what your guaranteed annual salary will be, as well as provide evidence of what the Australian market salary rate is for your role (generally by providing market salary survey data, or by providing the contract/payslip of an Australian citizen or permanent resident that is working for your employer. He or she needs to be working in the same role and location as your nominated role). Your employer needs to pay you at least the Australian market rate for your role. This ensures that you are not underpaid, and employers don’t just hire foreign employees because their salary demands are less than the Australian market rate.

2) Your employer needs to continue to pay you the Australian market rate

Your sponsoring employer is obligated to comply with the obligation outlined above for the duration of the time that you hold your 457 visa. Your employer is required to periodically review your salary and increase it as the Australian market rate for your role increases.

3) You can only work for your sponsoring employer and in your nominated role

Pretty self explanatory. You can only work for the employer that is currently sponsoring you for your 457 visa. Also, you can only work in the role that DIAC has approved in the nomination application.

4) Hold appropriate  health insurance coverage

You must show proof of adequate health insurance when applying for your 457 visa. An applicant must arrange for health insurance and show proof of cover when they lodge their 457 visa application. If any dependent family members are included in the application, then adequate health insurance coverage is also required for these individuals.

There are exceptions available for Irish passport holders and if you hold a passport from a country that has a reciprocal health care agreement with Australia – United Kingdom, Sweden, Finland, Norway, the Netherlands, Belgium, Slovenia, Malta and Italy.

A comparison site that lists all the policies can be viewed at www.457visacompared.com.au.

IMAN Health Funds offers a wide range of competitively priced health insurance policies that are appropriate for 457 visa applicants (as well as other foreign nationals who need to maintain health insurance coverage while in Australia): www.austhealth.com 

5) If you’re changing your role

If you’re employer wants you to take on some extra or more senior responsibilities due to your development in your role, you can generally take on these tasks without notifying DIAC. This is the case as long as the majority of your tasks and duties still fall within the ANZSCO that DIAC approved in the nomination application. For instance, if your approved ANZSCO occupation is Civil Engineer (233211), you can check the tasks listed for this ANZSCO and decide whether your role still fits within this ANZSCO after the changes to your duties. If the changes are such that you no longer fit into your approved ANZSCO, then your employer will need to lodge a new nomination application and DIAC will need to approve this application before you can start working in your new role. Your approved ANZSCO can be found in your 457 visa approval notification.

6) If you want to change employers / Taking a second job

Firstly, you need to ensure that your prospective employer is eligible to sponsor you for a 457 visa. This generally means that they need to hold Standard Business Sponsorship and that this sponsorship is valid (or that they are eligible and willing to apply for this). Your prospective employer will need to lodge a 457 nomination application and have this approved before you can start employment with them.

Due to Condition 8107, you can’t take up a second job – period (i.e. you can’t take up a second job even if this job is similar to your nominated role, or if it is a casual position that doesn’t interfere with your work with your 457 visa sponsor).

7) Changing employers and completing current employment obligations

As I stated in point 3 above, you can only work for your sponsoring employer and in your approved role. The exception to this is when you’re changing your employer and 457 visa sponsor. Even after the 457 nomination application for your new employer has been approved and your sponsorship has changed to this new employer, you can continue to work for your former employer and sponsor to ‘fulfil a requirement to give notice of termination of employment’. Basically, you’re allowed to fulfil the terms of your employment contract.

8) If you end your employment with your sponsor

Your 457 visa is subject to condition 8107 – this condition requires you to remain employed in your nominated role with your sponsor. If your sponsor terminates your employment, then they are obligated to notify DIAC.

If more than 90 days has passed since your last date of employment, then you are considered to be in breach of condition 8107 and DIAC may issue you with a issued with a Notice of Intention to Consider Cancellation. If you intend to lodge another visa application, then you can discuss this matter with DIAC and see if they can give you a little extra time to prepare and finalise the application (evidence supporting your claim that you will be lodging a genuine application may help you case).

If your employer notifies DIAC of your cessation and you’re outside of Australia, then DIAC can cancel your 457 visa without notifying you.

9) Covering the cost of your flight to leave Australia

Once you have ceased employment,  you can make a written request to your employer and request that they cover the reasonable cost of your departure. Your employer is obligated to cover this cost if it receives such a request.

10) Applying for permanent residency with employer sponsorship

Holding a 457 visa can open up various pathways for obtaining Australian permanent residency. If your 457 visa sponsor is willing to sponsor you for permanent residency, then you may be able to apply for either a 186 or 187 visa. The most straight forward pathway to permanent residency for 457 visa holders is generally to complete two years of employment with your 457 visa sponsor and then apply under the Temporary Residence Transition stream. This stream is available under both the 186 and 187 visas.

To apply under the Temporary Residence Transition stream, you need to complete two years of employment with the employer that sponsored you for your 457 visa as the primary 457 visa holder (dependent 457 visa holders cannot apply under the Temporary Residence Transition stream). Employment with a different 457 visa sponsor can’t be counted towards the two years. Employment while holding any other visa also doesn’t count.

However, you may be able to apply for permanent residency under the Direct Entry stream, in which case, you do not need to complete two years of employment as a 457 visa holder.

For the 186 visa Direct Entry stream, generally speaking, you need to apply for and obtain a positive skills assessment for your nominated occupation from the relevant skills assessment body. If your guaranteed annual salary is $180,001 or over, then you are exempted from having to obtain a skills assessment, and you may be able to proceed with an application under the Direct Entry stream now.

For the 187 visa Direct Entry stream, generally speaking, you only need a positive skills assessment if your nominated occupation is a ‘trade’ occupation (e.g. plumber, cook, electrician etc.). For professional occupations (e.g. accountant, engineer, nurse, teacher, management level roles etc.), you do not need to obtain a skills assessment. Generally speaking, you need to have either a Bachelor degree or higher level qualification that is relevant to your nominated occupation or alternatively, you need five years of full-time experience in positions that are similar to your nominated role. Like with the 186 visa, you are also exempted from needing a skills assessment if your guaranteed annual salary is $180,001 or over.

 

Alternative pathways to permanent residency

 

Many 457 visa holders transition to permanent residency through the sponsorship of their employer. However, you may be able to apply for permanent residency without the sponsorship of your employer. You may now eligible for a Subclass 189 or 190 visa.

The 189 visa is called the Skilled Independent visa. It is an invitation and points-based visa. Before you can apply for this visa, you need to firstly prepare and submit an Expression of Interest. In the ‘EOI’, you provide your personal details, employment history, qualifications etc. You are entitled to points based on various factors such age, experience and qualifications etc. DIAC will invite the applicants with the highest points to apply (the minimum points required for an invitation is 60). You must receive an invitation from DIAC before you can apply. Also, only the occupations listed on the Skill Occupation List can be used for a 189 visa application.

The 190 visa is similar to the 189 visa. The main difference is that you firstly need to obtain Australian state or territory government sponsorship before you can apply for this visa. Why obtain such sponsorship? Firstly, it is worth 5 points. Also, each state or territory has its own list of sponsorable occupations – consequently, there are a lot of occupations which are sponsorable under the 190 visa, which are not sponsorable under the 189 visa.

A great advantage of obtaining one of the above mentioned visas is that you are not obligated or tied to any one employer. If you obtain permanent residency through employer sponsorship, then you will need to make the commitment that you will work for your sponsor in your nominated role for 2 years from the date of visa approval.

There is no such obligation imposed on 189 and 190 visa holders. You are free to change your employer as you please. For the 190 state or territory government sponsored visa, you need to make the commitment to work in your sponsoring state or territory for at least 2 years from when the visa is approved. But you are not committed to any one employer.

In fact, you do not even need to work in your skilled profession. You can start your own business, make a career change, progress to a more senior role in management etc.

For Subclass 189 visa holders, you do not really even need to remain in Australia since you do not have any obligations to an employer, or state or territory governments. You can obtain this permanent residency visa and secure your future in Australia, or just give yourself the option of living and working in Australia. Your family members can come to Australia and establish a living for themselves while you remain overseas.

 

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920 thoughts on “10 Useful Things to Know About Your Australian 457 Visa

  1. Felipe Broering

    Hi!

    I’m just checking for more information about Direct Entry stream and on the Border website I found this information:

    The Direct Entry stream is for:
    – people who have been nominated by their employer under the Direct Entry stream
    – people who have never, or only briefly, worked in Australia, or
    – temporary residents who do not qualify for the Temporary Residence Transition stream.

    When they say “briefly”, how long is this? I’m already on a 457 visa for 11 months, can I apply for this visa to get the PR?

    Thanks!

    Felipe

    Reply
    1. Peng Cheng Post author

      Hi Felipe,
      You can apply for the DE stream if you satisfy the relevant requirements – 11 months of work as a 457 visa holder won’t affect your eligibility.
      PC

      Reply
  2. Harry

    Hello, I am on a 457 visa and immigration has asked for proof that I am not underpaid. The hourly rate is 4$ less than market rate but the yearly package is more. The sponsor has told them that he was putting extra hours to make up for the market rate but they are still asking for proof. What happens in this case if they cancel his eligibility to sponsorship? Will I be asked to leave or wont be able to apply for PR? Thanks in advance.

    Reply
    1. Peng Cheng Post author

      Hi Harry,
      Sorry but I can’t provide advice just based on your comment information.
      Please see Contact Us page and in relation to our Consultation Service – feel free to contact us if you need advice in relation to your visa options.
      PC

      Reply
  3. Afolabi Tolulope Josiah

    Hi Peng,
    I am a renewable energy engineer from Africa who recently got nominated for 457 Australian visa. Please I would like to know if the cost of the visa application and other bills will be borne by me or my potential employer. Thanks and hoping to hear from you soonest

    Reply
    1. Peng Cheng Post author

      Hi Afolabi,
      Extract from DIBP website – see sponsor tab: https://www.border.gov.au/Trav/Visa-1/457-
      Not recover, transfer or charge certain costs to another person
      You must not take any action or seek to take any action that would result in the transfer or charging of costs (including migration agent costs) to another person, such as a sponsored visa holder or their sponsored family members this includes costs that relate to:
      the recruitment of the person you sponsored
      becoming or being a sponsor or former approved sponsor.
      This obligation:
      starts on the day the sponsorship is approved or the work agreement commences
      ends on the following two events:
      you cease to be an approved sponsor or party to a work agreement
      you no longer have a sponsored visa holder.
      Sponsors are also required to pay certain costs associated with becoming a sponsor and not pass these costs, in any form, onto another person. These include:
      cost of sponsorship and nomination charges
      migration agent costs associated with the lodgement of sponsorship and nomination applications
      administrative costs and any sundry costs an employer incurs when they conduct recruitment exercises, including:
      recruitment agent fees
      migration agent fees
      the cost of job advertising
      screening of candidates, short listing, interviews and reference checks
      salaries of recruitment or human resource staff
      the cost of outsourcing background checks, police checks and psychological testing where they relate to an employer determining an applicant’s suitability for the position
      training of new staff
      responding to queries for prospective candidates, and advising unsuccessful applicants
      travel costs for the sponsor to interview and/or meet the applicant either overseas or in Australia.
      PC

      Reply
  4. Marcus Pillhofer

    Hi
    We have applied to be a “Standard Business Sponsor”.
    Can we lodge a “Nomination Application” whilst this is being processed as we have a existing 457 visa holder to fill a roll we cannot recruit locally?
    Can this 457 visa holder then begin their employment with once while our Sponsorship application is being processed?

    Cheers
    Marcus

    Reply
  5. Ash

    Hi,
    This was a very helpful article! I just had a quick question: I need a visa for 2-3 months before I get my 189 visa invitation. I am already working in Australia with a Post-grad visa. My current visa expires in August and I expect to receive an invitation for 189 in Oct-Nov. In this case, can I just get a 457 from my employer now and then just shift to 189 when I get it? Does it tie me down to my current employer for 2 years?
    Thanks in advance!
    Ash

    Reply
    1. Peng Cheng Post author

      Hi Ash,
      You can apply for a 189 visa as a 457 visa holder – you aren’t tied to the employer once you get your 189 visa.
      PC

      Reply
      1. Fahim

        Hello Peng,

        I am desperately seeking help with this as I’m struggling to make a decision.

        Im on TR expiring on 17th october 2017.

        I turn 25years on 22nd september 2017 and have enough points to apply on 189.
        (Occupation list electrical engineering)

        I have time to get an invitation within 24 days.
        Im working full time with a company who said they are going to sponsor 457.
        Main question: Is it possible to get an invitation for 189 while you are on 457?

        Reply
        1. Peng Cheng Post author

          Hi Fahim,
          Yes you can receive an invitation and apply for a 189 visa while you hold a 457 visa.
          PC

          Reply
          1. Fahim

            Peng quick question to add to that,
            Is it possible to get an invite in 24 days in electrical engineering occupation on 189 ? I will have just 60 points!

  6. Chang

    Hi, Iam on 457 dependent visa and currently working. I would like to know whether am still eligible to work if my spouse (being main applicant) resigns from the job and doesn’t want to work for sometime. If my spouse is cancelled once the employer notifies the DIBP, am I still eligible to work. Please advise.

    Reply
  7. Cadu

    Hello, I am 457 holder and work as a Sous Chef, however I do some painting in my spare time and a friend of mine want to sell the paints in her shop. Can I use a ABN or I can not even sell the paintings?

    Cheers
    Cadu

    Reply
    1. Peng Cheng Post author

      Hi Cadu,
      Sorry but you can only work in your nominated occupation – extract from DIBP website:

      Condition 8107
      This condition is only relevant to a primary holder of a subclass 457 visa. You must:
      only work in your nominated occupation
      start work within 90 days of arrival in Australia if you were outside Australia when your visa was granted, or within 90 days after your visa was granted if you were already in Australia at the time
      only work for the sponsor, who nominated the position you are working in (if your sponsor is a standard business sponsor and is an Australian business, you can also work for an associated entity of the sponsor)
      not cease employment for a period of more than 60 consecutive days
      obtain any licence, registration or membership necessary to perform your occupation in Australia and comply with any provisions within 90 days:
      after initial arrival in Australia on this visa
      from date of visa grant if already in Australia
      if your visa was granted on or after 1 December 2015 you must also:
      not engage in work that is inconsistent with your licence, registration or membership
      notify us in writing as soon as practicable if your application for the licence, registration or membership is refused
      notify us in writing as soon as practicable if your licence, registration or membership ceases to be in force or is revoked or cancelled.
      PC

      Reply
  8. Geoff

    Hi Peng,

    If I want to transfer my visa to another company that has sponsored people in the past. Will they need to prove that they require a foren employee even if it just a transfer or will they just need to do the 457 nomination application?

    Thanks

    Reply
    1. Peng Cheng Post author

      Hi Geoff,
      Yes demonstrating the business’ need for the role is generally required for a 457 nomination application.
      PC

      Reply
  9. Kellie

    Hello,
    I’ve just recently applied for my 186 visa, and currently waiting for my employers nomination to be approved for my permanent residency on a temporary transition stream. As lm now on a bridging visa (457 visa runs out in June ’17).
    My question is, while lm on this bridging visa…can l get a second job?

    Thanks

    Reply
  10. Geoff

    Hi Peng,

    I have ceased my employment with my employer. I gave my 30 days notice and they paid me off and told me that they would not inform DIAC that I quit for 30 days after I left the office. It has been over 45days and I logged into myVEVO and my visa status has not changed.

    If they forgot to inform DIAC but did much later can my quit date be back dated?

    Thanks
    Geoff

    Reply
  11. Dale

    Hi peng,
    I m regularly checking your forum and you are really very helpful, so i want to ask you one question that i have applied 186 visa after completion of 457 visa that i have applied in 11 January 2016 still no response from immigration. Now i m on bridging visa so can i work with other employer to earn extra money as i m working with my sponsoring employer as well because i can see on my bridging visa that “Full Permission to Work ” so is that mean i can work with any employer until my 186 visa grant!!
    Hope you will help me for this confusion.

    Reply
  12. par

    Hi, there,
    how long do we need to work under 457 visa? do we need to work for 4 years and cant leave
    this position? Can we leave the company once we apply for 187?

    Reply
  13. SINOR BITI

    Hi Peng,
    I’ve applied for 457 visa. My medical and nomination ok. Nomination done on 10 October. But, not approve visa yet. It is noted that I have been in Au and had WA-010( Refugee)visa record. Now im offshore. Is there any restriction of time for me for 457? In my case, someone told me I’ll have to wait at least 3 years time after leaving Australia. I’ve already passed 2 year 6 months out of Au.
    What do you think?
    Thanks

    Reply
    1. Peng Cheng Post author

      Hi Sinor,
      Sorry but I can’t provide advice just based on your comment information.
      Please see Contact Us page and in relation to our Consultation Service – feel free to contact us if you need advice in relation to your visa options.
      PC

      Reply
  14. Vinay

    Hi,

    I am on a 457 VISA and it is expiring on 20th April. I have changed my employer and the nomination is transfered to the new employer effective Dec 2016.
    Now as my VISA is expiring, ia asked my employer to extend my 457 VISA but they advised that they cannot extend the 457 but I will have to apply for a fresh 457 VISA with the existing nomination.
    Need your advise in this matter.

    Thanks,
    Vinay

    Reply
    1. Peng Cheng Post author

      Hi Vinay,
      Sorry but I can’t provide advice just based on your comment information.
      Please see Contact Us page and in relation to our Consultation Service – feel free to contact us if you need advice in relation to your visa options.
      PC

      Reply
  15. Raj

    Hi Peng,

    I am on 457 visa and my company has lodged the dependent 457 visa for my wife and kid on 12th Dec 2017. Today is 20th Feb 2017 and still no news from immi side. What could be the reason for delays.

    Regards,
    Raj

    Reply

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