The O'Neills

Just had an email fron the company sponsoring our 457 visa. Firstly they say they will sponsor us for PR AFTER Bing has been in the position for TWO years as this is a requirement of the PR Visa. Is this correct? I have read threads where people have said that they have applied for PR as soon as they have entered Australia on a 457 visa.

Secondly they told us that we will not qualify for LAFAH as Halliburton are offering Bing a PERMANENT position and therefore we will not be returning to the UK. BUT If they won't sponsor us for PR, then that keeps us on the 457 TEMPORARY business visa does it not?

Confused , Can anyone shed any light?

Thanks,

Nic

PS they also pointed us in the direction of private medical cover . . . . aren't employers supposed to organise this on a 457 visa?

wannabauzzienurse

Maybe it depends on the type of PR visa they're talking about but I'm going on a 457 and my sponsor said they will sponsor me for RSMS PR after a six month probation period. I think there used to be a two year rule but it's changed recently but I could be wrong (won't be the first time )

Don't know anything about the LAFHA I'm afraid.

Bix

Different visas, different rules Nic.

Which PR visa - ENS, RSMS ?

If you are on a 2 year 457 visa, yes the employer has to guarantee 2 years permanent employment but that does not change the status - it is still a temp visa.

On that basis I would have thought LAFHA is valid. However I think it is one of those negotiable things. Do they really believe he does not qualify or is it actually just something they don't want to do ? Hmmmmm.

Bix

Rules changes a while ago.
The way it's worded now the employer is able to duckshove it onto the visa holder.
Another negotiable item

woody1cruiser

I am over here on a 457 (4 year temporary visa). Pasted my appraisal after 3 months and they are now applying for RSMS visa for me. It is a PR but means I am tied to the company for 2 years unlike other permanent visa's.

They have spoken to Dima and as far as they are concerned, there are now worries.

Debs

pumpkin blossom

Sorry, what is a RSMS visa? Thanks

leigh&ivan

Hi Nic

This link will give you some info on LAFHA.

http://www.gomatilda.com/news/docume..._Allowance.pdf

Employers don't have to provide health insurance. OH's employers have made it a condition that we take out our own.

Leigh

wannabauzzienurse

regional sponsored migration scheme

it's a PR visa that an employer has to sponsor and you work for that employer in a regional area for two years

chels

There are no hard and fast rules when it comes to these issues. The employer doesn't have to sponsor for PR. They can make you pay for your health insurance yourself - it's quite a substantial cost, esp. for a family.

Technically they cannot offer you a permanent position while you are on a temporary visa! It's a bit of an oxymoron... Are you keeping your home in England? Then you can show that you are living away from your home and it may help your negotiations. But they don't sound keen on you getting it. Which is mad because there's no real cost implication for them.

Are they providing a good relocation package at least?

What have they said will happen if the job ceases to exist? Will they pay your repatriation costs?

JAJ

No, it's not correct in all cases. There is no requirement to spend 2 years on a 457 if:

- you can get a skill assessment and have 3 years work experience; OR
- you are being paid A$165k a year or more; OR
- you are eligible for PR through the RSMS

Did you not download and read booklet 5 which explains all of this?

It's a grey area. They are responsible for medical expenses, but some employers try to offload this onto employees.

Medical insurance may be a lot more expensive if you do not have Medicare access. Don't forget school fees for children either - NSW and some other states now insist 457 holders pay these. A few thousand dollars per year per child.

The question really is what you are willing to accept.

Abject_Rage

I'm on a 3-year 457 and have just taken legal advice about LAFHA. Basically, the fact that the 457 is, by definition, 'temporary' does not mean you automatically qualify for LAHFA. They look at everything to decide whether you genuinely intend to return to your 'home country' after the visa expires and make a call on the evidence. So, to give you 2 concrete examples:

- I sold my house in the UK a month after arriving in Melbourne, bought a house here with govt approval, and relocated my wife and 3 kids, along with all our stuff from the UK. I have 2x UK bank accounts still open and credit cards but no investments. I don't qualify and counsel claim they couldn't even begin to argue that I should. So I lose out on child and tax benefits I would receive as a resident in the UK and yet can't get the equivalent in Australia, because I'm a temp visitor on a 457.

- my uber-boss is Japanese and has been seconded from Japan HQ for a 3-year term. His wife and 2 kids remain in Japan during the 3-year term, he has a house there but sold his car and bought a new car as soon as he arrived here. His life, if you like, is still principally in Japan, despite the fact he's living and working here. Automatic qualification for LAFHA.

yanH

Its strange that you don't qualify as I am receiving LAFHA and have almost identical circumstances, ie no house in the UK, all stuff and family brought from the UK. My application did get assesed by our companies tax specialist as well before being granted.

chels

It's not about 'qualifying'. It is up to the employer. You do not have an automatic right to LAFHA, whatever your circumstances.

I know of people in identical situations as us, and whereas we were lucky enough to negotiate LAFHA, they were not because a few months later the company decided they were no longer going offer it.

mbike

If the company give you LAFHA and then ATO decide you don't meet the requirements the company is liable for FBT on the whole lot. It's self-interest on their part. 457 visa holders are in no position to argue with the employer who holds all the aces so most give up. Before agreeing to 457 sponsorship prospective applicants should ask for the company policy of LAFHA in writing and base their decision to accept the job on that.

For health insurance, even if a company specify a requirement for health insurance in your contract - and make it a condition of employment, they are still liable for your medical costs should they arise. It is very clear from
form 1196:

"The business undertakes to do the following in relation to sponsored persons including accompanying family members:

ensure that the cost of return travel by a sponsored person is met;
pay all medical and hospital expenses for a sponsored person [other than costs that are met by health insurance arrangements]:
- this undertaking continues until such expenses are paid”.

If you don't have insurance, they foot the bill. Simple as that. And self-interest again.

They are asking you to travel halfway around the world. You should rightly expect them to look after you when you get here. Again, something to be negotiated before you commit.

FWIW I missed out on both LAFHA and health insurance when I came over on a 457.

Mark

chels

That's exactly why OH's employers stopped offering it to new employeesA new HR person started with a bit more knowledge and they didn't want to risk getting audited by the ATO.