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I received this email from a member of Migration Alliance yesterday and thought it best to share the DIAC response:
Hi Liana,
Can you please send my enquiries to the 457 policy section:
Dear Sir / Madam,
I am completing an application online for a subclass 457 visa application on behalf my client who is currently does not hold a substantive visa and is unlawful. Subclause 457.211 allows an applicant to submit a valid subclass 457 onshore whilst the applicant does not hold a substantive visa subject to addressing Schedule 3 criterias.
During process of completing an online application, there is a message stating:
The following errors have been encountered: - Departmental systems indicate that you are unable to make an application for this visa online (please see below print screen)
Effective 1 July 2013, the application for a subclass 457 visa must be made as an internet application only.
Can you please assist of how I can submit a valid online application for the above circumstances?
I look forward for your urgent response.
The response from DIAC is as follows:
Hi Liana,
The online systems changes have been designed so that there should not be impediments to online lodgement for applicants who do not hold substantive visas.
Agents having difficulty with online lodgement should be contacting the Service Centre (details are on our web-site). The Service Centre can liaise with our e-service support section in relation to the specific details of the case to see what can be done to enable lodgement of the application.
Hope this is of assistance.
Assistant Director
Sydney Temporary Business Entry
Department of Immigration and Citizenship