British Expats

British Expats (https://britishexpats.com/forum/)
-   Immigration, Visas & Citizenship (Australia) (https://britishexpats.com/forum/immigration-visas-citizenship-australia-32/)
-   -   Why do employers offer subclass 457 visas rather than permanent residency? (https://britishexpats.com/forum/immigration-visas-citizenship-australia-32/why-do-employers-offer-subclass-457-visas-rather-than-permanent-residency-522340/)

verystormy Mar 30th 2008 8:47 pm

Re: Why do employers offer subclass 457 visas rather than permanent residency?
 
I think the reason companies like the 457 is that it is so much quicker. You can get it in two to three months compared to the very long times people are waiting for other visas. There are few employers happy to have a vacancy unfilled for months at a time.
We are on a 457, though the company have already said the will sponser PR as soon as we want, i think they want to ensure we are happy in Oz, before going down the full and expensive PR route

winedonju Mar 30th 2008 8:54 pm

Re: Why do employers offer subclass 457 visas rather than permanent residency?
 

Originally Posted by verystormy (Post 6135620)
I think the reason companies like the 457 is that it is so much quicker. You can get it in two to three months compared to the very long times people are waiting for other visas. There are few employers happy to have a vacancy unfilled for months at a time.
We are on a 457, though the company have already said the will sponser PR as soon as we want, i think they want to ensure we are happy in Oz, before going down the full and expensive PR route

Not that I mean to pry, but do you earn over the threshold hold as well in order to get PR straight away??? Or can anyone do it (so to speak), I just get confused easy lol.
Donna.

verystormy Mar 30th 2008 9:13 pm

Re: Why do employers offer subclass 457 visas rather than permanent residency?
 
From what i understand, the sponsered PR can be done anytime regardless of salary, it is the non sponsered PR that requires a salary over a certain amount

Alan Collett Mar 30th 2008 9:23 pm

Re: Why do employers offer subclass 457 visas rather than permanent residency?
 

Originally Posted by verystormy (Post 6135620)
I think the reason companies like the 457 is that it is so much quicker. You can get it in two to three months compared to the very long times people are waiting for other visas. There are few employers happy to have a vacancy unfilled for months at a time.
We are on a 457, though the company have already said the will sponser PR as soon as we want, i think they want to ensure we are happy in Oz, before going down the full and expensive PR route

I think there are often likely to be 2 reasons - the one the employer tells you (the application is quicker to be processed) as against the real reason (it is more likely you won't leave their employ if you are employed on a 457 visa).

For reference we are still seeing ENS applications lodged in Sydney (nomination and visa) processed to a decision in less than a month ...

Best regards.

jayr Apr 1st 2008 10:35 am

Re: Why do employers offer subclass 457 visas rather than permanent residency?
 

Originally Posted by verystormy (Post 6135756)
From what i understand, the sponsered PR can be done anytime regardless of salary, it is the non sponsered PR that requires a salary over a certain amount

It can be but there are different ways of getting it.

One rule is that you need 2 years of employment in the career in which you are being sponsored with 12 months with current employer.

An alternative is to earn above a threshold salary which negates the requirement above.

JAJ Apr 1st 2008 12:36 pm

Re: Why do employers offer subclass 457 visas rather than permanent residency?
 

Originally Posted by jayr (Post 6144990)
It can be but there are different ways of getting it.

One rule is that you need 2 years of employment in the career in which you are being sponsored with 12 months with current employer.

An alternative is to earn above a threshold salary which negates the requirement above.

A further alternative is skill assessment + 3 years work experience (which can be overseas, can also be waived in some circumstances).

I_Will_Freckle Apr 1st 2008 1:17 pm

Re: Why do employers offer subclass 457 visas rather than permanent residency?
 

Originally Posted by Pollyana (Post 6079587)
Ok, I'm going to throw this one in as a bit of devil's advocate. Does anyone feel that employers prefer to use the 457 sponsorship because -----
it gets workers to Aus quicker, into jobs that Australians wont take, in the hope that by the time the migrants find out why the Aussies won't take them the migrants have expended so much effort getting to their "promised land" that they will stay anyway. By the end of the sponsorship period they already have enough potential employees in the next batch to replace those that say "on your bike" and walk away, and so the cycle repeats itself.

(this is a purely personal comment btw, no particular employers in mind)

I am of a similar opinion.


Originally Posted by ponyrama (Post 6080784)
I fall into the desperate category and so will be considering all options including 457. However, having researched the routes I could take I will be pressing any prospective employer willing to sponsor me to support a PR application straight away. Technically you are tied to them for two years (you can walk into another job and sponsor at any time on a 457) and so whilst it may take a few weeks longer to process, they should get more bang for their buck? It is definitely a more attractive option I feel and whilst I might have to settle for living in a regional area for 2 years, at least I know after that time I can please myself whereas on a 457 you might never get out of the loop and end up having to return to the UK.

You're not tied to the employer for any length of time on a PR visa. You're an employee, not a slave.

We originally agreed to come over on an ENS PR visa. The sponsoring company employed an agent who recommended the 457 route and we refused, saying it was PR or nothing. We got the PR visa. The risks associated with a 457 were just too great for us to consider it.

jayr Apr 1st 2008 5:25 pm

Re: Why do employers offer subclass 457 visas rather than permanent residency?
 

Originally Posted by I_Will_Freckle (Post 6145394)
We originally agreed to come over on an ENS PR visa. The sponsoring company employed an agent who recommended the 457 route and we refused, saying it was PR or nothing. We got the PR visa. The risks associated with a 457 were just too great for us to consider it.

My experience is that is always the employer's agent who recommends 457. The employer engages a professional and not suprisingly acts on their advice.

I have had three 457's so far by different employers (one being the original). For the second and third my emplyers were keen to offer PR and in both cases had it written into mey employment contract but the agents advising them both said do 457 first.

Alan Collett Apr 1st 2008 5:30 pm

Re: Why do employers offer subclass 457 visas rather than permanent residency?
 
I had a discussion with an experienced agent at a seminar in Melbourne last Friday, and she was also of the view that a 457 visa was preferable to an ENS or RSMS.

"Tax reasons" was the main argument given. Which is fine, but there is an old adage I remember from my UK tax practice days - don't let the tax tail wag the commercial dog.

Best regards.

jayr Apr 1st 2008 6:21 pm

Re: Why do employers offer subclass 457 visas rather than permanent residency?
 

Originally Posted by Alan Collett (Post 6145868)

"Tax reasons" was the main argument given. Which is fine, but there is an old adage I remember from my UK tax practice days - don't let the tax tail wag the commercial dog.

Best regards.

I presume that one tax benefit that goes to the employer is probably lower payroll tax, assuming that payroll tax is based on taxable income, which is reduced by LAFHA.

Alan Collett Apr 1st 2008 6:28 pm

Re: Why do employers offer subclass 457 visas rather than permanent residency?
 
Payroll tax isn't always payable - I stand to be corrected, but I recall the liability to pay this tax depends on the size of the payroll.

Certainly the quantum of the superannuation guarantee is reduced though.

By contrast, consider the employer's obligation (reg 1.20CB) to pay all medical or hospital expenses for a sponsored person arising from treatment administered in a public hospital (other than expenses that are met by health insurance or reciprocal healthcare arrangements). That could be a significant exposure financially ...

Best regards.

Vanessa Apr 3rd 2008 8:26 pm

Re: Why do employers offer subclass 457 visas rather than permanent residency?
 

Originally Posted by verystormy (Post 6135756)
From what i understand, the sponsered PR can be done anytime regardless of salary, it is the non sponsered PR that requires a salary over a certain amount


I don't think that is quite right. As I understand, if you are here on a 457 you can apply before the 2 years is up on for an ENS but only if your occupation is on the skills list (you could also apply for PR in your own right in this instance anyway). If however, you are are not on the skills list there is a 2 year waiting period unless you earn over $165,000 not including super.

This is very basic advice and it is more indepth than that, but someone will correct me if I am wrong

saraliz Apr 3rd 2008 10:25 pm

Re: Why do employers offer subclass 457 visas rather than permanent residency?
 

Originally Posted by Vanessa (Post 6157484)
I don't think that is quite right. As I understand, if you are here on a 457 you can apply before the 2 years is up on for an ENS but only if your occupation is on the skills list (you could also apply for PR in your own right in this instance anyway). If however, you are are not on the skills list there is a 2 year waiting period unless you earn over $165,000 not including super.

This is very basic advice and it is more indepth than that, but someone will correct me if I am wrong

Not quite right. To apply for an ENS visa, the person's occupation must be on the ENS skills list (ENSOL), regardless of how long they have been in Australia. The person can apply for the ENS visa at any time if they have either: (a) a skills assessment in their nominated occupation and three years recent work experience in that occupation; or (b) a base salary of A$165,000 or more. If neither of these can be met, the person can be eligible to apply immediately after having worked for two years in Australia while on an eligible visa (and they must have worked for at least the year before applying with their sponsoring employer).

Cheers

Sara Brownell


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