Australia has amended the requirements for its subclass 457 visa (Temporary Business – Long Stay) for the stated purpose of preventing exploitation of foreign workers and ensuring that they are not brought in to undercut national wages. Subclass 457 visas are the most commonly used visa for sponsoring foreign workers in Australia. The visas can be valid for a period between three months and four years.

Under the amended rules, employers sponsoring foreign employees on subclass 457 visas are required to pay the market rate for the position. Employers currently paying below the market salary rate to existing subclass 457 visa holders will have until January 1, 2010 to commence paying market rates.

Where an Australian national occupies a similar position, a foreign worker’s rate will be based on that employee’s salary, benefits, etc. Where no equivalent Australian employee exists, employers must review outside collective agreements, salaries, etc. to establish the market rate.

In addition, if an employee’s salary is $180,000 AUD ($155,275 USD) or more, the employer will be exempt from the market rate requirement. Also, subclass 457 visas will not be issued for positions with salaries below $45,220 AUD ($39,008 USD).

Previous significant changes to the 457 visa were made in April; specifically:

• An increased English language requirement for trade occupations and chefs;
• The introduction of formal skills assessments for all trade occupation applicants from countries that are not considered low-risk;
• A requirement that employers attest to a strong record of, and commitment to, employing local labor and non-discriminatory employment practices;
• The development of formal training benchmarks for sponsors; and
• A requirement that labor agreements be in place for ASCO (Australian Standard Classification of Occupations) five to seven occupations.