Frequently Asked Questions about changes to Subclass 457 program – Change to pathways for Semi-skilled Occupations

An applicant for a Subclass 457 visa under standard business sponsorship arrangements must be nominated for an activity which corresponds to the tasks of a gazetted occupation.

On 15 May 2009 the range of gazetted occupations was revised to include only gazetted occupations in Australian Standard Classification of Occupations (ASCO) major groups 1 to 4, meaning that employers can no longer nominate activities that have tasks that correspond to the tasks of occupations in ASCO major groups 5 to 7.

On 1 July 2010, the Department shifted to the ANZSCO framework to describe eligible occupations. The most current approved list of occupations is specified in a Legislative Instrument, and is listed on the department's website.
See: Nomination Eligibility

Regional employers seeking to fill positions relating to occupations that have been excluded from the standard sponsorship arrangements may wish to seek to enter into a labour agreement.

What are the gazetted occupation requirements under the Subclass 457 Visa Program?

A minimum skill level applies to all positions to be filled by overseas employees under the standard business sponsorship arrangements for the Subclass 457 Visa Program. The tasks of the activity must correspond to the tasks of a skilled occupation in a gazetted list of skilled occupations. These occupations are those in the eligible occupations list.

The most current approved list of occupations is specified in a Legislative Instrument, and is listed on the department's website.
See: Nomination Eligibility

Why were the changes to the gazetted list of occupations introduced?

A number of changes to the Subclass 457 visa program were introduced in order to ensure that it continues to provide industry with needed skills, while not undermining local training and employment opportunities.

These measures were developed through 2008 following the commitment by the Government to implement a package of longer-term reforms to the Subclass 457 visa program in 2009 to improve both its integrity and ability to deliver the skills needed in the economy. These measures were developed in response to concerns about the integrity of the Subclass 457 visa program, at a time when the demand for skills was high and the program was growing strongly.

The slow-down in the Australian economy in the wake of the global economic crisis and the subsequent decline in demand for Subclass 457 visas has not diminished the need to implement these measures and restore public confidence in the program.

One of these measures is that if the Subclass 457 visa program is to be used for the performance of tasks that correspond to the tasks of an occupation in ASCO 5 to 7, then this can only be done through a labour agreement pathway. This is to ensure that employers using the Subclass 457 visa program to access these occupations satisfy obligations on matters such as training.

I currently hold a valid Subclass 457 visa in an ASCO 5-7 occupation and I am still employed in that occupation. Is my visa still valid?

Yes. The changes do not affect the validity of your current visa. You will however not be able to be granted another Subclass 457 visa under the standard business sponsor program for this occupation.

Your sponsor may want to contact the Department to assess whether a labour agreement may be feasible in their circumstances.

You may also consider other visa options depending on your particular background and personal circumstances close to the expiry of your current visa.

As a 457 visa holder, can I seek permanent residence through the Regional Sponsored Migration Scheme (RSMS) or the Employer Nominations Scheme (ENS)?

Yes. You will need to make a valid application for a RSMS or ENS visa and meet all of the relevant criteria including the skill, age and English language requirements for the grant of these visas.

I currently hold a valid Subclass 457 visa in an ASCO 5-7 occupation, can I change my employer in my current occupation?

Your current Subclass 457 visa may be cancelled if you cease to be employed by your current employer.

As your occupation is no longer listed on the Gazetted List of Occupations you will not be eligible for the grant of another Subclass 457 visa under the standard business sponsor program.

You may only be granted another Subclass 457 visa on the basis of performing tasks which correspond to the tasks of an occupation in ASCO 5-7 if you are nominated by an employer who is party to a labour agreement that includes your occupation.

I currently hold a Subclass 457 (Long Stay) visa which is due to expire. The occupation I work in is in the ASCO 5-7 group, can I apply for another Subclass 457 (Long Stay) visa?

Whether you are eligible for a Subclass 457 visa will depend upon your individual circumstances and the occupation you wish to work in. If you wish to work in an ASCO 5-7 occupation you will not be eligible to apply under standard business sponsorship, however you may be eligible to apply under a labour agreement pathway.

How do I enter into a labour agreement?

Employers wishing to employ overseas workers in the ASCO 5-7 occupations should contact the Labour Agreement Section at the Department of Immigration and Citizenship.
Email: labour.agreement.section@immi.gov.au

I do not meet the new ASCO occupation requirement. Can I apply for a short stay business visa instead?

The short stay business visas (Subclasses 456, 459, 956, 977) are not intended to be used as work visas. Work is only permitted on a short stay business visa in limited circumstances:

• where the work is highly skilled (ASCO 1-4) and not for longer than six weeks
• where the work is highly specialised and not for longer than six weeks
• where the work is in the national interest.

The short stay business visa is not an appropriate visa for people intending to take up ongoing employment in Australia.