Macrossans Lawyers Brisbane law firm

Regional employers fear the impact of changes to Migration Regulations affecting Long Stay Business Visas, which will increase the minimum salaries of overseas employees and require payment for extra hours worked above a 38-hour week.

Prior to July 1 2006, the gazetted minimum base salary for a sponsored employee on a Subclass 457 Long Stay Business Visa was $41,850 per annum. A business appointing a sponsored employee in a regional area could apply for a waiver of this minimum salary, with no stipulation on the level of salary or hours, as long as employees were paid market rate and in accordance with an applicable award.

From 1 July 2006, businesses can still seek a waiver of the minimum salary; however, it cannot be lower than $37,665 per annum for a 38-hour week and is higher for positions in the Information Communication Technology industry. The legislation doesn't specify payment for extra hours, but the Department of Immigration and Multicultural Affairs (DIMA) has indicated that employees must be paid overtime, in line with the relevant award.

Understandably, many industries are concerned about the changes, particularly where the standard working week is over 38 hours and is calculated on a shift basis. The changes affect all pending applications even if a waiver was obtained prior to July, as well as future applications, including where a business is seeking to extend an employee’s visa by 're-sponsoring' them at the expiration of four years.

But some relief may be in sight. Macrossans Lawyers is working with several regional clients to develop an Australian Workplace Agreement (AWA), which complies with the new Australian Fair Pay and Conditions Standard. Provided the AWA is drafted to meet this Standard, an employer may remove an entitlement to overtime in particular cases.

DIMA has indicated to Macrossans that an AWA will be taken into consideration in deciding whether overtime needs to be paid.

Crackdown on Bogus Documents

Before submitting visa applications, employers must ensure all documentation is accurate, particularly work references. DIMA has stepped up its scrutiny and will verify information and claims of employment with overseas companies and relevant government departments in the home country.

To protect employers, it is recommended that recruitment agencies verify the employee’s documents before putting them forward for an application.

Other Visa Changes

•  Working Holiday Visas – Businesses can now employ people with a working holiday visa for 6 months, up from 3 months. This includes visa holders who applied for their visa before 1 July 2006.
• Skilled Designated Area Sponsored Visa – This visa has been split into two stages. Applicants must first seek a provisional visa, which requires them to live in a designated area in the same state or territory as their sponsor for at least 2 years. Before applying for a permanent visa, the applicant must have worked full time for at least 12 months in that area. The visa does not have a points test.

For more information on migration, contact Emma Swenson on 07 3292 9726 or This Email address is being protected from spam bots, you need JavaScript enabled to view it .

For further information on Australian Workplace Agreements contact Belinda Weir on 07 3292 9753 or This Email address is being protected from spam bots, you need JavaScript enabled to view it .

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