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Immigration News & Updates

Australian Immigration Alert

September, 2008
TEMPORARY RESIDENCE VISAS subclass 457
MINIMUM SALARY LEVEL TO INCREASE on AUGUST 1, ‘08

IMPORTANT REMINERS ...

LONG STAY BUSINESS VISA SPONSORSHIP OBLIGATIONS

As a Standard Business Sponsor: Please take time to review the following essential information.

In providing this information Expat International emphasises that it is crucial for all Business Sponsors to comply with the Undertakings they sign upon application for Standard Business Sponsor status.

MAINTAINING MINIMUM SALARY LEVELS

The figures below apply until 31 July 2009, for all employees on your payroll who hold Subclass 457 Temporary Residence (Long Stay Business) Visas.

AUSTRALIAN WORKPLACE LOCATION	POSITION CATEGORY	CURRENT MSL (Gross)	HOURLY GROSS MSL
Metropolitan – Melbourne Perth Sydney Wollongong Newcastle Brisbane	General IT & Communics	$43,440 $59,480	$21.98 $30.10
Regional – All areas not listed above	General IT & Communics	$38,100 $53,530	$19.28 $27.09
Note: If an Industrial Award or Agreement prescribes a higher salary level than the MSL, the higher salary must be paid in accordance with Australian law As different MSL criteria apply to Regional appointments, and those positions requiring English language exemption, Expat will advise you separately as required, on these exceptions The stipulated minimum annual salary is: base salary only, plus amounts that are FBT exempt. The base salary must not reflect any benefits or allowances, including but not limited to: Housing, LAFHA, Superannuation, Bonus, or Commissions In complying with DIAC’s stringent monitoring requirements, every 457 visa holder’s pay slip must indicate that the employee has received the minimum hourly rate as prescribed by DIAC or the relevant Industrial Award (which ever is higher) for at least 38 hours per week over the given pay period (per week, fortnight or month) The MSL cannot be averaged on an annual basis If the employee has worked less than 38 hours per week within the given pay period, the employer is obliged to pay the minimum hourly rate, or the hourly rate as prescribed by the relevant Industrial Award (which ever is higher) to a total of 38 hours per week within that period If the employee has worked more than 38 hours per week within the pay period, the employer is obliged to pay the minimum hourly rate, or the hourly rate as prescribed by the relevant Industrial Award for all hours worked within that period (including if time and a half or double time applies)

When are these obligations in effect??

The employer’s obligations as signed on the SBS application, relative to medical insurance cover and payment of minimum base salary for a 457 visa holder are:

Employment Commencement

From date of grant of 457 visa: If the visa was granted while the holder is onshore in Australia (eg: transferring from a previous sponsor, or from another class of visa)

From date of arrival in Australia: If visa holder was overseas at time of grant, medical insurance is required. Note: Employer may either arrange private expatriate medical insurance, or self-insure
No later than 14 days after arrival in Australia: If the 457 visa holder was overseas at time of grant …. MSL payments must commence

While Employment is in Effect

Within Five Business Days: The employer must notify DIAC of any significant change in the 457 visa holder’s Position Description or Job Title. Expat will advise DIAC, upon the sponsor’s written authority.

Employment Completion

Within Five Business Days following date that employment ceased, DIAC must be notified in writing of completion date. Expat, upon the Sponsoring Employer’s timely advice, will notify DIAC
28 days after date of last day of employment and relevant notification to DIAC: DIAC will cancel 457 visa for employee and visa’d dependants

The employer must continue to pay MSL or Industrial Award rate (which ever is higher), and remain responsible for maintaining medical insurance for the employee and visa’d dependants until which ever of the following three events occurs first …..

28 days after date of notification to DIAC of completion of employment, OR
Until the sponsored 457 holder obtains another substantive visa, OR
Until a time which is previous to the prescribed 28 days (after ceasing employment as notified in writing to
DIAC), that the sponsored 457 holder and visa’d dependants have departed Australia permanently …

DIAC conducts periodic announced, or unannounced, site visits to all sponsoring employers to inspect their employment records of 457 visa holders.   If records are deficient the sponsor can face up to 5 years’ barring from sponsorship privileges, depending on severity of the deficiencies.

Each Sponsoring employer is required to keep a comprehensive range of employment-related records which comply with existing Commonwealth, State and Territory laws. To prevent action being taken against employers, they should be prepared for DIAC monitoring by maintaining, and regularly managing, procedures that reveal information of the required detail as described above.

Expat emphasizes that it is the sponsoring employer’s responsibility to definitively arrange the employee’s and accompany dependants’ timely repatriation from Australia, and to request Expat within 5 business days of date of last day of employment, to notify DIAC.   This is an important component of maintaining a faultless record with DIAC as a responsible, compliant business sponsor.

Failure to do so exposes the employer to the immense potential for DIAC’s sanctions.

We urge you to maintain careful vigilance on all aspects of the undertakings that you have legally agreed to in becoming a Business Sponsor.

Expat maintains a VisaWatch database which generates 3 alerts to the Sponsoring employer at one-monthly intervals prior to expiry of a 457 visa.

We are encountering frequent responses to these alerts that the holder has already left the sponsoring company’s employment several months, or even years, earlier.

Examples of scenarios that could seriously impact on the sponsoring employer who has not advised DIAC within the mandatory 5 business days after completion of the visa holder’s employment are:

Although the 457 holder may have departed Australia, he or she remains eligible for MSL or Industry award payment (which ever is greater) until 28 days after the date of notification to DIAC, of last date of employment
The 457 holder could have departed, and later returned on the same sponsored 457 visa to work as a consultant, eg: working on his or her own, but technically still under the auspices of the sponsor. The sponsoring employer in addition to exposure to paying MSL or Industry award as described above, is responsible for costs to the Australian Federal Government incurred by the past-employee and visa’d dependants for public health and other charges incurred by the 457 holder

Under the foregoing scenarios:

DIAC can hold the employer responsible for making back-dated MSL or Industrial Award salary payments to the visa holder until 28 days after date of notification to DIAC, of completion of employment
The sponsoring employer may be liable for up to $60,000 fine and barred from Sponsorship status for up to 5 years
The 457 visa holder and / or visa’d dependants could have become seriously ill or injured. If public health costs were incurred, they are the employer’s responsibility

These undertakings are a part of Immigration Law, with which Sponsors must comply.

Expat’s next Newsletter will address aspects of other important 457 visa sponsor obligations.

Margaret McCartney
MARN 9904656

Since 1987 Expat International’s Visa Division has served Australian companies and multi-nationals in the management and acquisition of their Australian and global visa requirements.
Additionally, Expat is an independent relocation management consultancy operating throughout Australia, and in New Zealand and London, with established networks worldwide.
Expat’s combined delivery of in-house visa and relocation activities provides the advantage of a unique and value-add service for your company, and has proven to streamline employee transfer schedules both inbound and outbound.
We welcome discussion with you to arrive at best-possible solutions for your Australian or Global Visa and relocation issues, and look forward to doing so.

Australian Immigration Update

May, 2008
TEMPORARY RESIDENCE VISAS subclass 457
MINIMUM SALARY LEVEL TO INCREASE on AUGUST 1, ‘08

The Minister for Immigration and Citizenship has announced a 3.8% increase to the Minimum (Annual Base) Salary Levels (MSL’s) applicable to Temporary Residence visa holders.

Importantly, this increase not only applies to new temporary skilled migrants coming to work in Australia, but also to those already in the workforce as 457 holders.

AUSTRALIAN WORKPLACE LOCATION	POSITION CATEGORY	CURRENT MSL (Gross)	NEW GROSS MSL Effecttive 1.8.08
Metropolitan – Melbourne Perth Sydney Wollongong Newcastle Brisbane	General IT & Communics	$41,850 $57,300	$43,440 $59,480
Regional – All areas not listed above	General IT & Communics	$37,665 $51,570	$38,100 $53,530
Note: If an Industrial Award or Agreement prescribes a higher salary level than the MSL, the higher salary must be paid according to Australian law. The stipulated minimum annual salary cannot reflect any benefits or allowances, including housing, LAFHA, Superannuation, Bonus, or Commissions.

The Department of Immigration’s Monitoring program will continue to stringently monitor 457 holders’ salary payments, and directly contact employer sponsors affected by this change prior to August, 2008.

The Department will also conduct a campaign to inform existing visa holders of the change.

WILL BE PLEASED TO ANSWER YOUR QUERIES AND GUIDE YOU ON EITHER THE INFORMATION PROVIDED, OR OTHER CONCERNS YOU MAY HAVE.

Margaret McCartney
MARN 9904656

NEW CHANGES ……REVISED IMMIGRATION POLICY

April 2, 2008
SHORT STAY AND ELECTRONIC TRAVEL AUTHORITY BUSINESS VISAS

Short Stay Business Visas

The Department of Immigration and Citizenship (DIAC) has announced further revisions to their Policy on Condition 8112.

Condition 8112 states that: ‘The holder must not engage in work in Australia that might otherwise be carried out by an Australian citizen or Australian permanent resident’.

This is a mandatory condition on the following visa Subclasses (which are not intended as work visas):

Business Visitor (Short Stay) visa (Subclass 456)
Sponsored Business Visitor (Short Stay) visa (Subclass 459)
Electronic Travel Authority (Business Entrant – Long Stay) visa (Subclass 956)
Electronic Travel Authority (Business Entrant – Short Stay) visa (Subclass 977).

These visas allow business people to enter Australia for purposes such as:

attending conferences,
conducting business negotiations,
undertaking exploratory activities.

Additionally Subclasses 456 and 459 are applicable for short-term work which does not exceed 6 weeks’ duration and meets the following circumstances:

Highly specialized in nature, and not an ongoing role, or
An emergency or urgent situation, and not an ongoing role, and
In Australia’s interest.

A Short Stay Business Visitor’s Visa must not be utilized as a means for immediate travel to Australia, to commence work while applying for a substantive visa such as long-stay Temporary Residence Visa Subclass 457.

Short-stay Business visas remain inappropriate for:

unskilled or semi-skilled workers, or
individuals intending to undertake employment activities in Australia for longer than 6 weeks, or on an ongoing basis.

In these scenarios, a long-stay employer-sponsored temporary visa, subclass 457 is required.

EXPAT INTERNATIONAL’S TEAM OF FIVE REGISTERED MIGRATION AGENTS WILL BE PLEASED TO ANSWER YOUR QUERIES AND GUIDE YOU ON EITHER THE INFORMATION PROVIDED, OR OTHER CONCERNS YOU MAY HAVE.

Margaret McCartney
MARN 9904656

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