457 Visas

The most commonly encountered category of employer sponsored visa is the subclass 457 visa.  This visa allows an employer that has been approved by the Australian Department of Immigration to act as a business sponsor to nominate a skilled position, and for the intended employee to apply for the grant of a 457 visa.

Employers can be based in Australia, or located outside Australia where a new enterprise is to be established in Australia.

The 457 visa is a long term temporary residency visa, allowing the visaholder and accompanying family members to live and work for the sponsor for up to 4 years.

Being a temporary residency visa, those who are living and working in Australia as the holders of 457 visas are only subject to Australian tax on their Australian source income and capital gains – income and gains arising outside Australia are simply ignored from the Australian tax perspective.

There are also significant opportunities for 457 visa holders to enter into tax effective salary packaging with the employer.

The 457 visa application usually involves:

  • The employer (whether Australia based, or located overseas) seeking approval from the Australian Department of Immigration to acting as a business sponsor
  • The employer nominating a skilled position
  • The intended employee applying for the grant of a subclass 457 visa
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