Temporary Business (Long Stay) - Standard Business Sponsorship (Subclass 457)
Employer Obligations
There are a number of obligations that employers must be willing and able to meet. These obligations apply to applications lodged on or after 1 July 2004.
The department must be satisfied that the employer is able to meet these sponsorship obligations for both the employee and their accompanying family members.
- Senator Chris Evans addresses sponsors – changes to the Subclass 457-Business (Long Stay) visa (45KB PDF file)
- Subclass 457-Business (Long Stay) visa - Employer sponsorship requirements (377KB PDF file)
- Subclass 457 - Business (Long Stay) visa - Information for standard business sponsors Minimum Salary Levels
| Employer | Obligations |
|---|---|
| Must be responsible for costs |
|
| Must comply with immigration laws |
|
| Must cooperate with the department |
|
| Must comply with the terms of the nomination |
|
| Must comply with workplace relations laws |
|
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 calculating 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 requires 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 sponsored workers, or exempt from Fringe Benefit Tax (FBT).
See: Minimum Salary Levels and Occupations for the Temporary Business Long Stay Visa Notice 2009 (544KB PDF file)
See also: Frequently Asked Questions about changes to Subclass 457 program – ASCO 5-7 Occupations
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 (ATO).
See: Australian Taxation Office
Results of non-compliance
Penalties may be sanctioned if the business does not comply with these obligations.
See: Monitoring of Business Sponsors
Note: These obligations apply to applications lodged on or after 1 July 2004.
Before lodging an application, please read all related obligation requirements.
See: Other obligations
