Transcript 457 Independent Executive - Further Application Onshore

457 Independent Executive Further Application Onshore
Aims of this training session
To understand what a 457IE FAO visa
is and why it has been developed
 To make case assessments based on
the Schedule 1 and 2 criteria
 To be able to advise clients on their
options

What is an Independent
Executive visa?
Part of Business (Long Stay) visa
 4 year visa for non-sponsored
individuals to:
 establish a new business or
purchase an interest in an existing
business in Australia; and
 actively manage that business on a
day to day basis.

What is a 457IE FAO?
A two-year visa for 457IE visa
holders to remain in Australia and
continue their business activities
 Applicant must already be in
business
 Designed to enable more potential
applicants to be ‘EBA/REBA ready’

Why is it necessary?

A number of 457IEs are legitimately
engaged in business but cannot meet the
PR period of business ownership
requirement as their IE visa will expire
 Prior to 1 Nov these applicants must lodge
a fresh 457IE application offshore.
 Some 457IE holders have business in
areas that State/Territory governments
wish to endorse for a REBA application
Current 457IE Situation
Interest far higher than forecast
 Main source countries are South
Africa, Indonesia, UK, PRC
 Low flow on to EBA/REBA
applications
 Stock data at 30/6/01 was up by 23%
– 6,619 at 30/6/01; 5,363 at 30/6/00

Independent Executive Visa
Grants (persons)
4500
4000
3500
3000
2500
2000
1500
1000
500
0
1997-98
1998-99
1999-2000
2000-01
Benefits of 457IE FAO
Eliminates the need for 457IEs to
leave businesses unattended to
return offshore for processing a
second IE visa
 Eliminates the associated expenses
faced by applicants
 Assists promotion of business
activity

– especially in regional areas
Schedule 1 (time of application)
Criteria
Applicant must hold a 457IE visa
 Application must be made onshore

– PA does not have to be in A/a
– MFU can lodge separately
Fee is $155
 Form is 1066

– Section B (Q36) refers
Schedule 1 Criteria (cont.)

Applicant must have conducted a
business for at least 15 months as a
principal
– If less than 15 months, a State/Territory
business development agency may
endorse an applicant
 Grant is once only
State/Territory endorsement
only required where applicant has
conducted a business for less than
15 months
 letter from S/T govt business
development agency is sufficient

– State/Territory makes the judgement on
the business’ benefit to area
 know your S/T representative and discuss
referrals
Schedule 2 Criteria
The PA’s business must be of benefit
to Australia (see Reg 457.111(2))
 The PA has a genuine & realistic
commitment to maintain:

– an ownership of the business;
– direct & continuous involvement in the
management of the business; and
– make decisions that affect the
performance and direction of the
business from day to day
Schedule 2 Criteria (cont.)
Nothing adverse known
 PA has net assets of $250K

– includes business and personal assets
– flexibility to accept less

The PA demonstrates a need to be
resident in A/a
Health Requirements

Full medical checks prior to grant
– no waiver

‘One fails - all fails’
– PA must pass, all dependants must pass,
and also the members of the family unit
Consistent with EBA/REBA
requirements
 Offshore 457IEs are ‘streamlined’
checks

Other Issues

Each PA should be interviewed
– PAs should be aware of EBA/REBA
criteria and application process
Refusals are reviewable by MRT
 Refusal letters must explain that the
decision is merits reviewable and
stipulate legislated time

Need more information?

Business Skills Section, Central
Office
– mailbox: type Business Skills
– phone list
– BAP Case Advice Working Party
– referrals to Dr Alfred Tran