# Job offer but 457 Visa



## jomar843 (Mar 9, 2011)

Hello

I have just been offered a great job in Australia. Over $100,000 a year, Flights, shipping and expenses all paid for plus temporary accomodation for a couple of weeks when we arrive. Sounds great except for the visa. They are sponsoring me on a 457 which, having done some research on this visa, seems a bit too risky. If we move to Australia we want it to be permanent or if we choose to come back then it will be our choice. My wife and I have 3 young children and I am worried about giving up a good job in the UK and selling our house here then finding in a few years that I cannot gain PR and having to move back with nothing. Also, am I correct in thinking that it is difficult gaining a mortgage or loans whilst on a 457?

The offer I received is very tempting and I know a lot of people would jump at the chance to go on this visa but I don't want to make a hasty decision then regret it. Should I approach the company and see if they would sponsor me on a ENS? Seems a bit daft that they would spend all this money on me and risk me having to leave in a few years time. Any advice from anybody would be very much appreciated!

many thanks

Martin


----------



## Guest (Mar 9, 2011)

jomar843 said:


> Hello
> 
> I have just been offered a great job in Australia. Over $100,000 a year, Flights, shipping and expenses all paid for plus temporary accomodation for a couple of weeks when we arrive. Sounds great except for the visa. They are sponsoring me on a 457 which, having done some research on this visa, seems a bit too risky. If we move to Australia we want it to be permanent or if we choose to come back then it will be our choice. My wife and I have 3 young children and I am worried about giving up a good job in the UK and selling our house here then finding in a few years that I cannot gain PR and having to move back with nothing. Also, am I correct in thinking that it is difficult gaining a mortgage or loans whilst on a 457?
> 
> ...


Welcome to the forum  Take a look at the requirements of the onshore permanent residence visas (875, 876) and see if you are eligible in the current and/or upcoming points scheme. If you are eligible, go on and accept the offer, then while onshore lodge the relevant application. The good thing is that onshore applicants have a lesser amount of backlog for priority 3. Also, once you lodge the application, you will be eligible for a bridging visa until they provide you an outcome. This means that even if your 457 expires and you can't renew it, you can still lodge a bridging visa application. I would like other forum members to confirm my understanding though so do take a second opinion. Best of luck!!!


----------



## Snick (Feb 6, 2011)

Hi Martin

As you say, why spend all this money on you then not help and support you in PR. I am in a similar situation and my advice would be to rent your property, that way if it all goes pear-shaped, then you have something to come back too.
The 457 is risk adverse for both the employer and the Oz authorities - and the 28 days to get another job or be thrown
Out is a major concern.
I'd still take the step, what do you have up lose? It can't be any worse than this place!
What part are you going to?


----------



## jomar843 (Mar 9, 2011)

Snick said:


> Hi Martin
> 
> As you say, why spend all this money on you then not help and support you in PR. I am in a similar situation and my advice would be to rent your property, that way if it all goes pear-shaped, then you have something to come back too.
> The 457 is risk adverse for both the employer and the Oz authorities - and the 28 days to get another job or be thrown
> ...


Hi Snick

It is a bit of a predicament. Hopefully I can convince them to go the PR route. The job I've been offered involves travelling to different places in Australia on a rota basis. This means that we can live wherever we want in Oz and the company will fly me to wherever they need me to go. We quite fancy living in Western Australia. Baldivis, Secret Harbour look like nice areas. How about you? Where are you planning to go?


----------



## jomar843 (Mar 9, 2011)

Thank you ausimmi

I will take on board your advice and look into it.


----------



## Colindp (Jul 6, 2008)

I'm currently on a 457 visa, I did enquire about a mortgage and it can be done but you will need at least 20% deposit....

Good luck.


----------



## Maz25 (Jul 6, 2008)

Whilst all of us want to go to Oz on a PR visa, the reality is that this is not always possible and sometimes, you have to take the small opportunity that you are given and milk it for all its worth so that you can get the outcome you want.

Yes, it's ideal to ask your employer to get you a PR visa but very few companies do so (for overseas workers) unless you are incredibly experienced and working in a niche market (you may well be!). From the employer's point of view, they may interpret your request in a completely negative way and it may be perceived that you are only using them for a PR visa and that you would be on your jolly way no sooner have they secured you PR. Why not go out there, see if you like the place and your new employer? If the feeling is mutual and both you and your employer are satisfied with your performance, then you can broach the subject after a while. 

Alternatively, why not ask what's their take on PR and then take it from there? If they have a policy to sponsor their employees for PR, then you will have the reassurance that you need, without appearing to be forceful. 

Most employers want to know that you are a good loyal employee before they go down the PR route and do not necessarily want to bear your PR visa cost unless they get something out of it! Once you have PR, you hold all the cards and no employer wants that on your first day on the job! 

I don't know you nor your employer, so you are the best judge as to how your request for a PR visa will be met. Some would say that it demonstrates commitment but Australia is a very desirable place to live and with the number of people wanting to move there, I would question that theory, as would many employers. Reality is we care more about the opportunity to move to Australia as opposed to the actual job opportunity.
If you think your request would be well received, go for it! If not, bide your time!

Good luck.


----------



## Andrew James (Nov 6, 2010)

Dear All,

From an Australian tax perspective, entering on a 457 visa (especially when you are earning a significant salary) is by far the best approach- PR has many tax ramifications.

The OP could save $10-15k tax by being on a 457 as opposed to PR and that's only looking at the salary.

You can always take the option of company sponsored PR after a couple of years.

Best,

Andrew


----------



## Guest (Mar 13, 2011)

Andrew Landin said:


> Dear All,
> 
> From an Australian tax perspective, entering on a 457 visa (especially when you are earning a significant salary) is by far the best approach- PR has many tax ramifications.
> 
> ...


This is not correct. This link Individual income tax rates shows that you get taxed more if you are a non-resident because taxing starts from $1.


----------



## Andrew James (Nov 6, 2010)

ausimmi said:


> This is not correct. This link Individual income tax rates shows that you get taxed more if you are a non-resident because taxing starts from $1.



Hello Ausimmi,

There's a separate sub-branch of tax residence called "Temporary residence" that 457 visa holders can take advantage of through salary packaging. I am an ex-PricewaterhouseCoopers Australian and US expatriate tax manager which I am only stating here to demonstrate my background and experience.

Best,

Andrew


----------



## Guest (Mar 13, 2011)

Andrew Landin said:


> Hello Ausimmi,
> 
> There's a separate sub-branch of tax residence called "Temporary residence" that 457 visa holders can take advantage of through salary packaging. I am an ex-PricewaterhouseCoopers Australian and US expatriate tax manager which I am only stating here to demonstrate my background and experience.
> 
> ...


Thanks for the quick update. In your experience, are employers keen on providing this 'salary packaging'? Where can I read more about this? Appreciate your help.


----------



## Andrew James (Nov 6, 2010)

ausimmi said:


> Thanks for the quick update. In your experience, are employers keen on providing this 'salary packaging'? Where can I read more about this? Appreciate your help.


No problem. These links may be useful to you all:

http://www.pkf.com.au/PKFPublications/Publications/Publications/Coming to Australia_4-11-2010.pdf

http://www.pwc.com/us/en/hr-international-assignment-services/assets/australia-folio.pdf

http://www.publications.pwc.com/DisplayFile.aspx?Attachmentid=3530&Mailinstanceid=17135

I hope you can open the last one as it's that link that will take to to information on Living Away from Home Allowances (LAFHA). Just about all multi nationals will offer LAFHA for a couple of reasons:

1 - they can provide you with a larger take home pay whilst paying you less
2- they save on payroll taxes
3 - there's no cost to them to do it

The most common aspects of LAFHA are accommodation and food. Accommodation, whether payment on your behalf or direct reimbursement, is the largest component of the salary packaging in most cases. You can also claim education costs in most international moves.

You can even claim LAFHA domestically, such as moving from Sydney to Melbourne if you are on a fixed term deal (usually two years).

Best,


Andrew


----------



## Andrew James (Nov 6, 2010)

I should add a point that, technically, you have to move from your home country to Australia with the intention of returning to your home country in order to claim LAFHA. That said, most people don't decide to stay until the end of their LAFHA eligibility, which is usually 4 years but 5 years in some instances. 

I've seen companies give LAFHA to expats who have worked in many countries which is not technically correct but it happens a lot. For example, I claimed LAFHA when I moved from the UK to Australia and I "didn't decide" to actually move to the Middle East until the end of my time in Australia, if you catch my drift - and that is legal.


----------



## cletus (Jul 23, 2010)

Andrew Landin said:


> I should add a point that, technically, you have to move from your home country to Australia with the intention of returning to your home country in order to claim LAFHA. That said, most people don't decide to stay until the end of their LAFHA eligibility, which is usually 4 years but 5 years in some instances.
> 
> I've seen companies give LAFHA to expats who have worked in many countries which is not technically correct but it happens a lot. For example, I claimed LAFHA when I moved from the UK to Australia and I "didn't decide" to actually move to the Middle East until the end of my time in Australia, if you catch my drift - and that is legal.


Andrew,

Thanks very much for the information. I am migrating to Australia in April on a 457 visa which has already been approved. The sponsoring employer gave me a straight salary and in regards to LAFHA, they wrote on the offer letter that I will have to check with an Accountant / Tax Advisor on your eligibility for LAFHA after arriving in Australia.

Do you think I will have any issues with being able to take advantage of LAFHA? Are there tax advisors that specialize in LAFHA that you could recommend?

Thanks


----------



## Andrew James (Nov 6, 2010)

cletus said:


> Andrew,
> 
> Thanks very much for the information. I am migrating to Australia in April on a 457 visa which has already been approved. The sponsoring employer gave me a straight salary and in regards to LAFHA, they wrote on the offer letter that I will have to check with an Accountant / Tax Advisor on your eligibility for LAFHA after arriving in Australia.
> 
> ...


Hi,

I will PM you regarding this.

Best,

Andrew


----------



## yosithezet (Dec 19, 2010)

Andrew Landin said:


> Hi,
> 
> I will PM you regarding this.
> 
> ...


I'm in the same boat. Can you PM me as well?


----------



## JimJams (Jan 11, 2010)

I think you should ask them what their take is on sponsoring you for PR having worked for them for a little while, as Maz25 says. The cost of applyinf for 457 is not that great, afaik. As you yourself say



> Seems a bit daft that they would spend all this money on me and risk me having to leave in a few years time.


Exactly. Why spend all that money on a PR for you now, only for you to arrive with your family and decide after a year that you don't like the job/Australian lifestyle/you miss friends and family tooo much etc etc and then decide to up and leave back to the UK.

Personally I would rent out your home in the UK, go on 457 and claim LAFHA for as long as possible (obviously work out costs either way). Ask your employer how willing they would be to sponsor you for PR after some length of service.


----------



## amaslam (Sep 25, 2008)

This usually depends on the size of the company, its mainly an administrative cost initially in the accounting area for companies, and even if not on 457 people try to package things (i.e. uniforms or vehicles). If they're not already doing it then I don't expect them to start now and if they are already doing it then you're just one more on the rolls.



ausimmi said:


> Thanks for the quick update. In your experience, are employers keen on providing this 'salary packaging'? Where can I read more about this? Appreciate your help.


----------



## Colindp (Jul 6, 2008)

My employer is to sponsor me for PR after 2 years with them on 457, however being 52 makes it somewhat more difficult for us all. I have been advised that the cost to the employer is $8,000 and this is using WALGA (Western Australian Local Government Association) I have been asked to contribute $3,000 and be tied to my employer for three years...I am permitted to leave any time after PR is obtained but I would be expected to pay back some or all of the remaining costs.


----------



## Darla.R (Mar 27, 2011)

The charges are nowhere near as much as that

Employer Sponsored Temporary Visa Charges

You know I think it is illegal for them to ask you to contribute towards the costs. i'll see what I can find for you.


----------



## Darla.R (Mar 27, 2011)

Here you go Colindp, they cannot ask you to contribute towards the costs.



> The standard business sponsor must not recover, or seek to recover, from the primary or secondary sponsored person, all or part of the costs (including migration agent costs):
> •that relate specifically to the recruitment of the primary sponsored person
> •associated with becoming or being a sponsor or former approved sponsor.


The whole thing is set out here

Temporary Business (Long Stay) - Standard Business Sponsorship (Subclass 457)


----------



## Colindp (Jul 6, 2008)

Thanks, however WALGA state the the city is not obliged to pay for my visa, they only need to cover the nomination charges to DIAC. Would be interested in anything you dig up on the subject though... Thanks again.


----------



## Colindp (Jul 6, 2008)

Ahh, that relates to 457.. Yes? I am seeking PR so that is an 856 visa I think. 
I already have a 457 which indeed I did not contribute to. 
Thanks for that though, much appreciated


----------



## davekeane2 (May 29, 2011)

yosithezet said:


> I'm in the same boat. Can you PM me as well?



Same here lads, if possible could you PM too, Ive just finished my WHV, started a 457 a few days ago with a new company, first day of work tomorrow.. and so i'd like to have a good grasp of things before I approach them about LAHFA. Its not mentioned on my contract and when I asked the recruitment manager a few weeks ago she said ask the HR (at the construction site) when I start.. 

Thanks
Dave


----------



## wnvasdf (May 29, 2011)

its a great offer!!!


----------



## ozthedream (Dec 31, 2010)

*457 packages*



Andrew Landin said:


> Hello Ausimmi,
> 
> There's a separate sub-branch of tax residence called "Temporary residence" that 457 visa holders can take advantage of through salary packaging. I am an ex-PricewaterhouseCoopers Australian and US expatriate tax manager which I am only stating here to demonstrate my background and experience.
> 
> ...


hi Andy 

have similar queries - allow me to PM you - on 457 & move in sept 

cheers


----------



## Snick (Feb 6, 2011)

I've just got back to the UK - after 8 weeks in Oz with a 457 business sponsored visa. Be warned, if you have any falling out with you employer - then you have 28 days to get out!

The whole escapade has been a nightmare - just wish I'd listened to the migrant visa adviser who told me not to risk it! Fortunately, my Oz company paid for my return - 3 months salary and settling my broken lease.

For the likes of myself (over 50) it's probably the only way of getting out there - unless you are on the skills shortage list...for me it has left a very sour taste.


----------



## sunshiner (Jul 18, 2014)

Hi, I'm interested to know what you decided and what the outcome was if you don't mind sharing your experience. We are in Oz on a 457 visa - arrived in March 16. we know we might not be able to stay permanently if we don't get sponsored for PR but decided to come for the experience anyway. Hope to hear your story


----------

