Regional Employer Concessions
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Lower minimum skill and salary levels may apply for employers located in regional or low population growth areas in Australia.
When regional concessions apply
Regional concessions apply to most areas in Australia. A complete list of eligible areas is available.
See: Eligible postcodes for the Regional Subclass 457 programme and Regional Sponsored Migration Scheme
When regional concessions do not apply
Regional concessions are not available to:
- overseas businesses
- businesses whose activities include recruitment or labour hire activities
- apprentice/trainee positions
- positions that have their own specific visas, such as religious workers
- positions that, by law, can only be filled by Australian citizens or permanent residents, such as judges
- positions for elementary clerical, sales and service workers or labourers
- tour guides
- general occupations not specifically included under the ASCO classification system
See: Australian Bureau of Statistics - positions that will be located in the following areas of Australia:
- Brisbane
- the Gold Coast
- Newcastle
- Sydney
- Wollongong
- Melbourne
- Perth.
Minimum Salary Levels
Employers must pay at least the Minimum Salary Level (MSL) to primary Subclass 457 visa holders. A higher salary must be paid where required under workplace law or where negotiated between the employer and visa holder.
The formula for caluculating the MSL for every sponsored worker to whom the MSL applies is based on a 38-hour week and must be paid on a weekly, fortnightly or monthly basis. In any given week, a sponsored worker cannot be paid for less than 38 hours. For any hours in excess of 38 that are worked, the sponsored worker must be paid at least the equivalent hourly rate for every hour. If a relevant industrial instrument required a higher salary or overtime rate, then you must pay it.
When determining whether a sponsor is meeting their requirements to pay MSL, the department looks at the amount of salary paid to a person separate from any allowances or bonuses. While some salary-packaged items are allowed, these are limited to items that would be either 100 per cent tax deductible to the sponsorted workers, or exempt from Fringe Benefit Tax (FBT).
In some regions of Australia regional concessions may apply.
See: Legislative Instrument of Minimum Salary Levels and occupations - Subclass 457 - Business (Long Stay) visa (193KB PDF file)
Note: Businesses should seek their own professional advice on whether an item is 100 per cent tax deductible or otherwise exempt from FBT. Further information is available from the Australian Taxation Office.
See: www.ato.gov.au
Regional Certifying Bodies
A Regional Certifying Body must certify your nomination application for you to obtain a regional concession. The Regional Certifying Body ensures that the:
- tasks of the nominated position correspond to the tasks of an occupation in the Australian Standard Classification of Occupations (ASCO) major groups 1 to 7
- position is genuine, full-time and necessary to the operation of the business
- position cannot reasonably be filled locally
- wage or salary will meet, at least, the Minimum Salary Level that applies at the time that the nomination application is made
- working conditions will be at least equal to those provided for under relevant Australian laws and awards.
Contact your local Regional Certifying Body for details of documenation you must submit for certification of your nominated position.
See: Regional Certifying Bodies