16th June 2009

New MSL and SOL for 457 workers

New SOL for Skilled migrants

Fees increase and Forms changes

Other News

Policy Corner – nominated occupation / closely related

New Minimum Salary Levels (MSL) for 457 workers – effective 1 July 2009

Non Regional Australia: (Metropolitan cities)

Non-ICT occupations = $45,220

ICT occupations = $61,920

Regional Australia

Non-ICT occupations = $40,705

ICT occupations = $55,725

English Language exemption = $81,040

On 1 July 2009, employers must pay all sponsored 457 workers in accordance with the new MSL.The increase will affect all existing and future 457 sponsored workers.Failure by employers to do so will constitute a breach of the Sponsor's Undertakings under the migration legislation.

The MSL is based on a 38-hour week – no allowances e.g. LAFHA or bonuses can be included in the MSL.The MSL must be paid on a weekly, fortnightly or monthly basis.In any given week, a worker cannot be paid for less than 38 hours.For any hours in excess of 38 that are worked, the 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, this must be paid.

Please read the Diac letter to sponsors of 457 workers

Diac Letter to Sponsors

Also see Diac Media Release dated 1/4/2009 announcing 457 changes.

Diac Media Release

Tip:Employers must ensure all their 457 holders are paid at least the MSL on 1 July 2009.

New 457 Occupation List – effective 15 May 2009

The new list no longer includes occupations from ASCO 5 – 7.Employers, particularly from regional Australia, wishing to sponsor overseas workers in the ASCO 5-7 occupations may be able to use a labour agreement.

See: New 457 SOL

New SOL for the General Skilled Migration Program – effective 15 May 2009

A new Skilled Occupation List (SOL)was introduced on 15 May 2009. Chef, Cook and Hairdressers etc. are still listed as 60 points occupations.

See: New SOL

Government Lodgement Fees increase–1 July 2009

GLFsare revised each July.

Clients are encouraged to lodge your applications prior to this date – if possible – to avoid additional costs.

Changes to Forms– 1 July 2009

Significant changes to forms are made in March, July and November each year, with minor changes from time to time.Applications using outdated forms can be returned by Diac as invalid applications.This will have a huge impact on those applicants needing to meet lodgement deadline, e.g. age requirements.

Tip:Applicants are advised to ensure your applications are lodged prior to 1 July 2009, or use the new forms.

Two year study rule – now called 'Australian Study Requirement' – from 15 May 2009

From 15 May 2009, the Migration Regulations 1994 (‘the Regulations’) are amended to change the name of the 2 year study requirement to the Australian study requirement, with academic years now defined as follows:

1 academic year: 46 weeks

2 academic years: 92 weeks

3 academic years: 138 weeks

Previously the '2 year study requirement' was defined under policy and had led to confusion.This has now been rephrased as the 'Australian Study Requirement'.

More Changes to Skilled Visas (GSM)

The English language requirement for trades occupations will be increased to at least IELTS 6 in all test components:

1. for offshore applicants – from 1 July 2009;
2. for onshore applicants – from 1 January 2010.

A Job-Ready Test (JRT) will be introduced for GSM applicants nominating some trade occupations. Details of the JRT are being developed by DEEWR and DIAC.

Under this arrangement, fewer trade applicants will be able to apply for GSM in 2009-10.

POLICY CORNER

Nominated Skilled Occupation – cannot be changed

A nominated skilled occupation on the SOL must be indicated when lodging a skilled visa application.

According to Diac policy, there is no legislative mechanism that allows an applicant to change their nominated occupation after making a valid application. If an applicant has skills in more than one occupation on the SOL, they must decide which one of those occupations will be their nominated skilled occupation.

This is important because the points available for the applicant’s occupation and where applicable, specific employment, Australian employment and occupation in demand, are tied to the applicant’s nominated skilled occupation. It is not possible for an applicant to produce more than one skills assessment in an attempt, for example to claim points for being skilled in an occupation that has been added to the migration occupation in demand list while the visa application is being processed.

Study and nominated occupation must be 'closely related'

An onshore skilled applicant must meet this requirement.The intention of this requirement is to support the policy objective that skilled migrants be job ready for the Australian labour market and make a positive contribution to the Australian economy and society as soon as possible.Diac policy defines:

10.7'Closely related'

Where an applicant claims to meet the two year study rule (now Australian Study Requirement), the completed Australian qualification(s) must be 'closely related' to the nominated skilled occupation. The 'closely related' requirement is to ensure that applicants have qualifications that are compatible with their nominated skilled occupation. Under the new policy, the critical factor in determining whether the qualification is closely related to the occupation is whether the skill set(s) underpinning the qualification(s) are complementary and can be used in the nominated occupation – in terms of both subject matter and the level at which those skills were obtained.

Under the new policy, the circumstances of a qualification not being 'closely related' to the nominated occupation include those where the qualification is not related to the nominated skilled occupation e.g. an applicant’s nominated occupation is Registered Nurse and they have completed a Bachelor of Commerce to meet the two year study requirement.

Another instance in which qualifications would not be considered to be 'closely related' to the nominated occupation is where the level at which the skills were obtained is inconsistent with the level at which the applicant is skilled to work. For example, an applicant who completes a Certificate III in Furniture Making and a Masters of Information Technology to meet the two year study requirement. Although basic IT skills are generally applicable to most occupations the high level skills gained by completing a Masters course is inconsistent with the skills that would be useful on a day to day basis as an entry level tradesperson.

10.8Acceptable combinations

Example of acceptable combinations of study and nominated occupation are:

• an applicant who nominates Pharmacist as their skilled occupation and completes a Bachelor of Pharmacy in Australia;
• an applicant who nominates Electrical Engineer as their skilled occupation and has completed a Bachelor and Masters of Engineering in Australia;
• an applicant who nominates Pastry Cook as their skilled occupation and has completed a Certificate IIIin Patisserie and Certificate IV in Commercial Cookery in Australia;
• an applicant who nominates Archivist as their skilled occupation, and has completed a Graduate Diploma in Information Management and an Associate Diploma in Computer Science in Australia;
• an applicant who nominates Graphic Designer as their skilled occupation and has completed an Advanced Diploma of Arts in Graphic Design and a Diploma of Business.

Where an applicant has completed a ‘double degree’ it is a strong indication (though not conclusive) that the courses are closely related to one another and that the skills could be used together in a range of occupations. For example, where an applicant has done a Bachelor of Commerce/Law and nominated Accountant as their occupation, this would meet the closely related test skills in reading and interpreting Tax and other financial law would be directly applicable to working as an Accountant.

10.9Translators/interpreters

Where an applicant nominates Translator or Interpreter as their skilled occupation and the qualification(s) they have completed in Australia is/are not a translating/interpreting qualification, the study will still be ‘closely related’ if the Australian qualification had an "international" element. For example if the applicant completed a diploma in tourism, or a degree in international business to meet the two year study requirement.