An RMA and member of the Migration Alliance reports that there is a widespread scheme in China which systematically and blatantly rorts the sc457 visa system.

The RMA who makes regular trips to China says that, “Some offshore agents (not Australian RMA's) are advertising a service fee of RMB 1million (about AUD$180,000) to get a fake 457.” 

Apparently, the fraud involves the applicant providing to the employer the contract salary upfront. This is then recycled back to the visa holder after the grant of the visa in the form of wages.

 “It's going on in the major cities where Australia has consulates.  It's going on blatantly and yet it seems DIBP in China is asleep at the wheel…they can't seem to get out and make the most simple of checks. The damage being done to Australia's reputation is incalculable.  Decent agents who will not join in this scam are not respected, in fact, we are the brunt of jokes,“ reports the RMA.

This report, amongst others conflict with the ‘clean bill of health’ proclamation by the sc457 review committee and the Minister for immigration Mr Scott Morrison. The Minister said he is satisfied with the program on the basis that government's four-member panel for the sc457 Review found "no evidence to back the widespread rorting claims of the program made by the previous Labor government when they referred [to] 10,000 visa rorters".

Audits by the Fair Work Ombudsman have found up to 40 per cent of foreign workers employed under 457 visas were underpaid, not performing the jobs they were supposed to do or no longer employed by the person who sponsored their entry into Australia, a recent report in The Sydney Morning Herald noted.

More than 300 cases have been identified by Fair Work Ombudsman inspectors of 457 visa holders being underpaid, performing a job that did not match their visa application or both.

“Chefs and cooks brought into Australia on promised salaries of more than $50,000 were only being paid $30,000. Several foreign-born electricians here on 457 visas were also being paid far less than the Australian average. In another case, a 457 visa worker recruited to Australia as a customer service manager was found to be working as a cleaner and paid just $28,000” the report notes.

It adds that the random audits of 457 visa holders also identified another 420 cases where people were no longer employed by their sponsor or whose sponsor could not be located, raising doubts about the bona fides of those visa applications.

Read more: http://www.smh.com.au/federal-politics/political-news/questions-over-457-visas-as-morrison-loosens-rules-20140910-10f311.html#ixzz3DYI1K617