Compliance Crackdown on Subclass 407 Visa Sponsors

The Australian Border Force (ABF) has commenced a nationwide four-month compliance operation targeting businesses sponsoring workers under the Subclass 407 (Training) visa program.

Led by the Department of Home Affairs' Sponsor Monitoring Unit, the Subclass 407 compliance crackdown has already seen more than 100 workplace inspections conducted across Australia, with over 200 site visits expected before the campaign concludes. ABF officers are conducting interviews with both sponsors and visa holders, while the Fair Work Ombudsman is participating in the operation to review workplace conditions and employee entitlements.

The message from the Department is clear: compliance within the 407 visa program is under close scrutiny.

Increased Focus on the 407 Visa Program

The current compliance activity follows a period of increased attention on the Subclass 407 visa program.

As of 30 April 2026, approximately 55% of Subclass 407 visa applications lodged during the 2025-26 financial year were either refused or withdrawn. In addition, regulatory changes introduced in March 2026 removed the ability to lodge sponsorship, nomination, and visa applications concurrently, significantly increasing processing lead times for employers seeking to utilise the program.

At the same time, the Department is actively targeting sponsors where visa holders are performing duties outside the scope of their approved training program.

The Compliance Risk Many Employers Overlook

One of the most common compliance issues arises when the actual role being performed no longer matches the training program approved by the Department.

Unlike some other employer-sponsored visas, the Subclass 407 visa is based on a specific training plan that is assessed and approved at the time of lodgement. The training activity, duties, and objectives outlined in that application must continue throughout the duration of the visa.

Given that 407 visas are often granted for up to two years, it is not unusual for workplace requirements to evolve. However, changes that may seem reasonable from a business perspective can still create compliance concerns if they move beyond the approved training framework.

Employers should carefully consider whether:

• The visa holder's current duties remain consistent with the approved training program.

• The training being delivered matches what was outlined in the nomination application.

• The scope of the role has expanded beyond the original training objectives.

• Any changes have occurred since the visa was granted.

  
  

Even relatively minor deviations can place sponsors at risk if the role no longer reflects the approved training activity.

Record Keeping and Fair Work Obligations

Sponsors are also required to maintain records demonstrating that training is being delivered as approved.

These records may be requested during a compliance inspection and should clearly show the training activities undertaken, supervision arrangements, and progress of the trainee throughout the program.

Businesses should also remember that 407 visa holders are entitled to the same workplace protections as other employees under Australian workplace laws.

The Fair Work Ombudsman's involvement in the current operation highlights the importance of ensuring trainees receive the correct pay, conditions, and workplace entitlements. Underpayment issues or inappropriate unpaid work arrangements can expose employers to significant regulatory action.

A Common Issue: Promoting a 407 Visa Holder

A situation we frequently encounter is where an employer wishes to reward a trainee who has performed exceptionally well by expanding their responsibilities or offering a more senior position.

While this is often a positive development for both the business and the employee, it can create difficulties under the 407 visa framework.

Because the training program is effectively fixed once approved, a significant change in duties or responsibilities may result in the visa holder no longer undertaking the approved training activity.

Where a business wishes to retain a worker in an ongoing skilled role, a Subclass 482 (Skills in Demand) visa may be the more appropriate pathway. The 407 visa is designed for structured workplace training, whereas the 482 visa is intended for genuine skilled employment.

What Employers Should Do Now:  

Given the current compliance environment, employers sponsoring Subclass 407 visa holders should review their arrangements and ask:

• Are the employee's day-to-day duties still consistent with the approved training program?

• Has the role changed since the visa application was lodged?

• Do we have sufficient records to demonstrate compliant delivery of the training program?

• Are we considering promoting the visa holder or expanding their responsibilities in the near future?

Identifying potential issues early can significantly reduce compliance risks and provide more options for future workforce planning.

How SCA Connect Can Help:

If you currently sponsor Subclass 407 visa holders, now is an ideal time to review your compliance position.

Our team can assess whether your training arrangements remain consistent with the approved program, identify any potential risks, and assist with planning future visa pathways where appropriate.

For businesses looking to retain high-performing trainees beyond their training period, early planning is essential. We can help you evaluate whether a transition to a Subclass 482 visa is appropriate and guide you through the process before timing becomes an issue.

If you would like assistance reviewing your current arrangements or discussing future options, contact the SCA Connect team today.

Disclaimer: The information provided herein is of a general nature only and does not constitute immigration advice. For more detailed and case-specific information or advice, please get in touch with SCA Connect.