Changes affecting the Subclass 457 visa program from 1 July 2010
Introduction of ANZSCO - a new occupation classification standard
From 1 July 2010, the Department of Immigration and Citizenship is switching from the Australian Standard Classification of Occupations (ASCO) system to the Australian and New Zealand Standard Classification of Occupations (ANZSCO) system. While the same occupations remain eligible for the Subclass 457 program, they will be described differently and be assigned new codes.
All nominations that are received by the Department on or after 1 July 2010 defining an ASCO code will not be able to be approved. Clients in this situation may request in writing that the nomination application be withdrawn and the fee refunded.
The ANZSCO list of occupations eligible for the 457 visa program can be found on the ComLaw (Commonwealth Law) website (PDF).
Transitional arrangements ensure that there will be no adverse effect on sponsors who have nominations approved prior to 1 July 2010 using ASCO but the corresponding visa application is lodged after 1 July 2010. Visa applications will be assessed according to which ever standard, ASCO or ANZSCO, was used in the nomination assessment.
The introduction of ANZSCO also affects how occupations currently exempt from the English Language requirement are described. Previously described as ASCO 1-3 (excluding Chefs and Head Chefs), the exempt occupations have been translated in to ANZSCO. The list can be found on the ComLaw (Commonwealth Law) website (PDF).
Indexation of the Temporary Skilled Migration Income Threshold and English Language Salary Exemption Threshold
From 1 July 2010, the Temporary Skilled Migration Income Threshold (TSMIT) is being indexed by 5 per cent for all new nominations, in line with the ABS report on Average Weekly Earnings.
From 1 July 2010, TSMIT will be $47,480. The increase ensures that wages for Subclass 457 visa holders keep pace with annual wage growth for all Australians.
From 1 July, new nominations will not be granted for the Subclass 457 program if the market salary rate for the position is below the TSMIT of $47,480. Existing visa holders will be unaffected unless they change employer and a new nomination is lodged.
The English Language Salary Exemption Threshold is also being indexed to $85,090 in line with the indexation of the TSMIT.
Sponsors are reminded that they are required to pay their 457 visa workers the same terms and conditions as an Australian worker undertaking equivalent work in the same workplace. Importantly, this includes paying market salary rates.
Where there is an equivalent Australian worker in the workplace, the market salary rate will be determined by the industrial arrangements that apply to this worker - for example, a collective agreement, award, award conditions with above award salary rates or a common law contract.
Where there is no equivalent worker onsite, the employer may reference a range of information to substantiate the market salary rate for that occupation. This may include relevant collective agreements and awards or other evidence such as remuneration surveys or earnings data.
Further information
For more information on these changes, please contact Glenda Hutch, the DIAC Outreach Officer hosted by CCIQ on 0434 077 581 or by email ghutch@cciq.com.au.
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