June 24, 2013

In our Global BRIEF of 15 May 2013 and our blog of 11 June 2013 we informed you of the proposed new application fee for the Subclass 457 visa for skilled workers. As we reported, as of July 1, 2013 this fee will increase from the current AUD 455 to AUD 900. The Department of Immigration And Citizenship (DIAC) now has published its full new visa application fee schedule, confirming even more cost increases for visa applicants.

What’s Changed?

Up to now DIAC only charged one visa fee per application, whether the application was for one person, or a combined application for a whole family, of any size. The new fee schedule introduces separate fees for additional applicants (dependents) in a combined application. Most notable for our clients are the new fees for Subclass 457 visa applications and Subclass 186 visa applications (permanent residence visas based on the Employer Nomination Scheme):

Subclass 457:

  • Main applicant: AUD 900
  • Dependent aged 18 or over: AUD 900
  • Dependent aged below 18: AUD 225

Subclass 186:

  • Main applicant: AUD 3060
  • Dependent aged 18 or over: AUD 1530
  • Dependent aged below 18: AUD 765

As an example, for a family of four the fees for a Subclass 186 application will therefore double on July 1 from a previous AUD 3060 to AUD 6120, and the fees for Subclass 457 will even nearly increase fivefold from AUD 455 to AUD 2250.

The new fees will apply to any application which is filed on or after July 1, as well as any application for which the application itself and/or the first installment payment has not been received by DIAC before July 1.

ACTION ITEMS FOR EMPLOYERS

Companies who will be sending foreign employees to Australia and will apply for visas after July 1, 2013 should note the exceptional increase in government filing fees and adjust their assignment budgets accordingly. Where possible, applications should be submitted and paid before July 1 to prevent these higher fees to apply.

Additionally, we are reminding companies that in order to promote job growth for Australians, the Australian Government and the DIAC will be targeting a reduction in overall migration to include hiring of overseas skilled workers.  By increasing the 457 visa application fee, this will create new funding to the Fair Work Ombudsman to increase these new immigration compliance efforts.
Caveat Lector | Warning to Reader

This is provided as informational only and does not substitute for actual legal advice based on the specific circumstances of a matter. Readers are reminded that Immigration laws are fluid and can change a moment’s notice without any warning. Please reach out to your local Pro-Link GLOBAL specialist should you require any additional clarification. This alert was prepared by the Pro-Link GLOBAL Knowledge Management Team. Pro-Link GLOBAL worked with our PLG | KGNM Correspondent Office in Australia to provide you this update.

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