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JOHN GLOVER: Hello and welcome to another Pendragon Straight Talk. This weeks question is based around what the difference is in setting up your own SBS sponsorship under the new TSS visa versus maybe using an on-hire labour company.
First question really is are you finding the new 457/TSS visa too hard to work out or too hard to do?
I wouldn’t despair. With the gig economy becoming more prevalent you should take a look at the on-hire labour agreement companies. They make your life easier, maybe, going forward.
With all the talk about the changes in the 457 to the temporary skilled shortage visa, not a lot have been mentioned about the on-hire labour agreements that can be put in place.
The on-hire labour agreements are set up for three years with the Department and they have their own rules of engagement which usually last for the length of the agreement.
At this moment in time, not all the new rules have moved across to the on-hire agreements, which means that a few things are different. Therefore you might find it more beneficial to use an on-hire company rather than direct sponsorship yourself.
On-hire means exactly that have an on-hire agreement are allowed to surrogate sponsor on behalf of the company they are contracting the individual into.
The contract can be a normal contact or a daily rate or etc or can be a fixed salary with holidays and sick leave, so you can determine what contract you want. So with all the changes its worth looking at the on hire companies to see if they can assist you better going forward rather than sponsoring directly yourselves.
If your company does not turn over one million dollars or does not have [more than] five staff, you cannot become a sponsor the rules. However, an on-hire might be the way that you go forward, and it may have some of the occupations that you want to sponsor on their lists.
You still have to abide my minimum salaries and market salary rates, but you might find that the on hire still has an occupation on their list that has been removed from the new TSS lists. You may also find that they may be able to get a four year visa rather than a two year visa, it just depends on the agreement that is still in place.
They can’t, however help with permanent residency. However, most of them have migration agents working for them, who can let the individuals know what their options are going forward to get permanent residency.
All-in-all, just like the outsourcing of your payroll or your marketing or your ICT, you may find that the on-hire company is an easier way to deal with getting your 457/TSS visas going forward for your individuals and at the same time, removing a lot of the upfront costs, ongoing liabilities, relevant working insurances, and compliance that’s required through sponsoring direct.
So if you are finding it a little difficult with the 457/TSS visa system, have a look out there for the on-hires and talk to them and see if they can be of any assistance to you.
Thanks for listening, I look forward to talking to you next week.

Purnima Kabra