If you have lodged a Subclass 407 Training Visa application, recent updates from the Department of Home Affairs highlight a growing risk of visa refusals for applicants whose nominations have been refused.
The Department has reported a significant increase in Subclass 407 nomination and visa applications. However, many of these applications have failed to meet the relevant eligibility requirements.
Since July, approximately 6,500 nomination applications have been refused out of around 8,000 finalised nominations, representing an exceptionally high refusal rate. As a result, thousands of associated visa applications are now under review and may face refusal.
What Happens When a Nomination Is Refused?
A Subclass 407 visa application requires a valid approved nomination. Where a nomination is refused, the associated visa application may also be at serious risk.
The Department currently has:
- Approximately 2,500 visa applications where applicants have been issued a Section 57 Natural Justice letter following nomination refusal.
- Approximately 4,000 additional visa applications where the nomination has been refused, but the visa application has not yet been assessed.
With such a large number of cases awaiting a decision, further refusals are expected in the coming weeks and months.
Understanding a Section 57 Natural Justice Letter
A Section 57 Natural Justice letter is generally issued when the Department intends to rely on information that may lead to a visa refusal.
In these cases, applicants are typically advised that their nomination is no longer valid and are given 28 days to respond before a decision is made.
This response period provides an opportunity to consider available options and seek advice regarding the next steps.
Not Every Applicant Will Receive a Section 57 Letter
Importantly, the Department has confirmed that where an applicant is considered not to satisfy the Genuine Temporary Entrant (GTE) requirement, a visa refusal may occur without a Section 57 Natural Justice letter being issued.
This means that if a nomination has been refused and the Department also considers that the applicant does not meet the GTE requirement, the visa application may be refused on GTE grounds without first inviting further comment.
While the Department’s standard practice is to wait approximately 14 days after a nomination refusal before making a decision on the visa application, applicants should not assume they will receive additional opportunities to respond.
What Should Applicants Do?
If your nomination has been refused, it is important to act quickly.
Depending on your circumstances, potential options may include:
- Exploring whether a further nomination can be lodged – in some circumstances, a new nomination may be lodged and the pending visa application linked to that new nomination. Given high refusal rates, this may not be the best approach;
- Addressing any concerns regarding the visa application;
- Consider prospects of appeal at the Tribunal and the key deadlines for ensuring review rights are preserved;
- Considering alternative visa pathways; or
- Withdrawing the visa application where appropriate.
Given the Department’s indication that refusals are likely to continue at a high rate, applicants should closely monitor their correspondence and seek advice as soon as possible.
Key Takeaway
The Department’s latest figures demonstrate a significantly increased level of scrutiny of Subclass 407 applications. With more than 80% of recently finalised nominations being refused, applicants and sponsors must ensure that all requirements are met and that training arrangements are genuine, properly documented, and compliant.
If your Subclass 407 nomination has been refused, or you have received a Section 57 Natural Justice letter, early advice can be critical. The steps taken in the days immediately following a nomination refusal may have a significant impact on your visa outcome and future migration options.
Need advice about a Subclass 407 nomination refusal or visa application? Contact our team to discuss your options before a decision is made on your case.