4/JUN/2026

Crackdown on Subclass 407 visa breaches: An important update for your business




The Australian Border Force (ABF) has launched a national four-month compliance operation targeting the Subclass 407 (Training) visa program, led by the Department of Home Affairs’ Sponsor Monitoring Unit.

ABF officers have completed over 100 site visits across all states and territories, with more than 200 workplaces scheduled before the operation concludes. Inspections involve on-site interviews with both employers and trainees, and the Fair Work Ombudsman is also involved, meaning both immigration compliance and workplace entitlements are under scrutiny.

The operation is actively targeting sponsors who are in breach of the 407 visa conditions, including trainees carrying out duties that are unrelated to their approved training activity.

The broader picture reflects just how closely the Department is scrutinising this visa program. In the 2025-26 financial year to 30 April 2026, 55% of Subclass 407 applications were either refused or withdrawn. Recent rule changes introduced in March 2026 also removed the ability to lodge sponsorship, nomination, and 407 visa applications concurrently, meaning the lead time between identifying a candidate and filing their visa application is significantly longer than it used to be.

The compliance risk you need to be aware of

For businesses currently sponsoring 407 visa holders, the risk we want to flag is whether training is actually being delivered as approved.

The 407 visa program is fixed at the point of lodgement. The training activity, duties, and structure approved by the Department are what the visa holder must continue to do for the duration of their visa. Given that 407 visas are typically granted for up to two years, it is common for circumstances to shift during that time, and this is often where unintended breaches can occur.

In particular, you should be aware of the following:

  • Training, duties, and scope must reflect what was lodged. The training program submitted to the Department is essentially fixed – it cannot be adjusted over time. The training being delivered, the duties the visa holder is performing, and the scope of their role must all remain consistent with what was approved. If any of these have drifted from what was lodged, this is a breach of visa conditions, regardless of whether the change seemed minor or reasonable at the time.

  • Recordkeeping matters. Sponsors are required to maintain records showing that training is being delivered as approved. If you are uncertain whether your records are adequate, now is a good time to review them.

  • Ensure correct pay and entitlements. Under the Fair Work Act, trainees have the same workplace rights as other employees. Unpaid or underpaid training arrangements expose you to enforcement action from both the ABF and the Fair Work Ombudsman.

A heightened obligation for Accredited Sponsors

This is a common issue we see arise over the course of a 407 visa. After a period of working with a trainee, an employer may wish to recognise their contribution by promoting them or expanding their responsibilities. Unfortunately, due to the fixed nature of the training program, this is generally not possible under the 407 visa without risking a breach.

If you are considering a change of role or an effective promotion for a 407 visa holder, it is likely you will need to transition them to a Subclass 482 (Skills in Demand) visa instead. The 407 and 482 programs serve different purposes, with the 482 being the more appropriate vehicle for an ongoing skilled work arrangement.

How we can help

Advance planning is essential. For a 407 holder whose visa is nearing expiry, or who you wish to retain beyond their training period, early action is critical. We can help you plan and execute this transition before the timeline becomes a problem.

Given what we are seeing in the current compliance environment, we would encourage any client currently sponsoring 407 visa holders to take stock of the following:

  • Are the visa holders’ actual duties consistent with their approved training program?
  • Has anything changed in their role since the visa was lodged?
  • Do you have adequate records to demonstrate compliant training delivery?
  • Is there any possibility you will want to promote or change the role of a 407 holder in the coming months?

If any of these questions give you pause, we would welcome the opportunity to discuss your situation. Contact our office at your earliest convenience and we can review your arrangements and advise on the best path forward, including, where relevant, early planning for a transition to the 482 program.

We have a wealth of experience helping employers and skilled workers navigate the complexity of applying for and managing visas. Speak to one of our immigration specialists today.

contact us

+61 2 9212 4008

51 Albion Street,
Surry Hills,
Sydney NSW 2010
AUSTRALIA
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(or flexible by appointment)

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