The Department of Home Affairs has provided important clarification following reports of a significant increase in Subclass 407 Training visa nomination and visa refusals.
According to the Department, approximately 6,500 nomination applications have been refused out of around 8,000 finalised since July. This means a substantial proportion of recently finalised nominations have not met the relevant eligibility requirements.
The Department has also confirmed that thousands of related visa applications remain on hand, including applications where the nomination has already been refused but the associated visa application has not yet been finalised.
For applicants, sponsors and businesses using the Subclass 407 program, this is an important reminder that both the nomination and visa application must be carefully prepared and satisfy the relevant legal requirements.
What happens when a Subclass 407 nomination is refused?
A Subclass 407 visa application generally relies on there being a valid nomination in place.
Where the nomination is refused, the Department may then consider whether the associated visa application can still meet the requirements for grant.
The Department has clarified that applicants may generally face one of two scenarios.
- A section 57 Natural Justice letter may be issued
Where the nomination is no longer in effect and the Department is considering refusing the visa because there is no valid nomination, the applicant may receive a section 57 Natural Justice letter.
The standard response period provided by the Department is 28 days.
This gives the applicant an opportunity to respond before a final decision is made.
Depending on the circumstances, this period may be critical for considering whether a further nomination can be lodged, whether additional information should be provided, or whether another strategy may be more appropriate.
- The visa may be refused on GTE grounds
The Department has also clarified that where an applicant does not satisfy the Genuine Temporary Entrant, or GTE, requirement, the visa application may be refused without a section 57 Natural Justice letter being issued in relation to the nomination refusal.
Where both the nomination has been refused and there are GTE concerns, the Department has indicated that its standard process is generally to allow 14 days following the nomination refusal before making a decision on the visa application.
This period is intended to give applicants some time to consider their position and available options.
Importantly, applicants should not assume that they will always receive a section 57 letter before their visa is refused.
Thousands of Subclass 407 applications remain affected
The Department has advised that it currently has approximately:
- 2,500 visa applications where applicants have already received a section 57 Natural Justice letter following refusal of the nomination; and
- approximately 4,000 visa applications where the nomination has been refused but the related visa application has not yet been progressed.
As a result, the Department expects continued high volumes of refusals in the coming weeks and months.
For applicants with a pending Subclass 407 visa, this makes it particularly important to monitor the status of both the nomination and visa application closely.
Why are Subclass 407 applications being refused?
The Department has stated that the majority of the recently finalised applications did not meet the relevant eligibility requirements.
The Subclass 407 Training visa is designed for applicants undertaking eligible occupational training or professional development activities in Australia. It is not simply an alternative pathway for ordinary employment.
A nomination must therefore be supported by a genuine and appropriately structured training program that satisfies the requirements of the relevant training stream.
Problems may arise where, for example, the proposed activities appear to involve normal productive work rather than genuine training, the training plan is insufficiently detailed, the nominated activities do not align with the applicant’s circumstances, or the evidence does not adequately demonstrate why the proposed training is required.
The applicant must also independently satisfy the requirements of the visa application, including the Genuine Temporary Entrant requirement where applicable.
What should you do if your nomination is refused?
A nomination refusal does not necessarily mean that every applicant will have the same options.
Depending on the timing and circumstances of the matter, possible steps may include:
- withdrawing the visa application before a decision is made;
- considering whether another visa pathway may be available; or
- obtaining advice about any review rights following a refusal.
The correct strategy will depend on the reason for refusal, the applicant’s visa status, timing, eligibility and the evidence available.
Because the Department may move to finalise an associated visa application relatively quickly after a nomination refusal, applicants should seek advice as early as possible.
Planning to lodge a Subclass 407 application?
The Department’s clarification highlights the increasing scrutiny being applied to Subclass 407 nominations and visa applications.
Sponsors should ensure that the proposed training program is genuine, structured and properly documented, while applicants should ensure that their circumstances, intended activities and temporary stay in Australia are clearly supported by evidence.
A poorly prepared nomination can have consequences not only for the sponsoring organisation, but also for the applicant’s related visa application.
If you are considering a Subclass 407 Training visa, have received a nomination refusal, a section 57 Natural Justice letter, or are concerned about a pending application, obtaining legal advice early may help you understand your options before further action is taken by the Department.