# Already on 457 but would like to start own business



## schott19 (Nov 3, 2009)

Hi,

I am already on a 457 visa and have been here for 6 months so far (loving Sydney btw  )

I work in software and have a couple of ideas for creating an online business. I could write the website in my spare time so would still be working for my sponser.

My questions are:

am i allowed to do this with my visa? 
if not, is there anything stopping me from creating the website and not making any money from it? 
Is there a way i can do both? i.e. would i need a different visa (or PR?)

Any feedback would be great 

Thanks in advance


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## Wanderer (Jun 16, 2007)

schott19 said:


> Hi,
> 
> I am already on a 457 visa and have been here for 6 months so far (loving Sydney btw  )
> 
> ...


Your 457 visa is as you know dependent on you being employed with a sponsor and so as long as you maintain that relationship, you are entitled to do anything legal you want to in Australia other than being employed by someone else who is not an approved sponsor and not actually sure if you can have two jobs with different sponsors _[ an interesting concept but not what you have asked ]_ but if you want to develop your own web site as a personal interest that'll be fine.


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## schott19 (Nov 3, 2009)

Hi,

Thanks for your quick reply - thats good news. I suppose if i earnt any revenue from the site then i would just declare this when i do my tax return?

Actually - i would probably need to register a company and all that stuff... i realise this isnt really related to visa's but would that be allowed?

Cheers


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## Wanderer (Jun 16, 2007)

schott19 said:


> Hi,
> 
> Thanks for your quick reply - thats good news. I suppose if i earnt any revenue from the site then i would just declare this when i do my tax return?
> 
> ...


A sole proprietor company registration is probably a relatively simple process and NSW probably has a Small Business department or a department of a similar name from where you'll probably be able to get an info pack.
If you get to the stage of receiving revenue, then yes you'll need to look at what's required as part of registration, an ABN number and company TFN etc. or whether you can just operate it and declare it as additional personal income.
The Small Business advice may also have something re registration when on a TR visa but I'd not be surprised if they do not as many state governement departments do operate somewhat removed from federal government requirements and it could just be sufficient that you are legally resident.


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## aba (Oct 29, 2009)

schott19 said:


> Hi,
> 
> I am already on a 457 visa and have been here for 6 months so far (loving Sydney btw  )
> 
> ...


Sorry to burst your bubble but you need to be very careful as I do not believe that the answer is a straight forward as the previous post has led you to believe

On a 457 visa you will have a condition 8107 on your visa. This condition has become more complicated and the restrictions will vary depending on what part of the Regulations you were granted your visa under.

One of the specific limitation which may apply with this restriction states " the holder must not: engage in work for another person or on the holder's own account inconsistent with the activity in relation to which the visa was granted.

I would advise caution.

Raul T Senise Registered Australian Migration Agent, MARA No. 0636699
Home


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## Wanderer (Jun 16, 2007)

Further to what aba has posted, there may well be some situations as referred to and I have not scrutinised the 8107 condition myself but I would feel working for another or on your own account is possibly in the context of no longer having a sponsor or lets say should be:
Under 457 Employee Obligations, you have


> *Visa conditions*
> If your application for a temporary visa is approved, the following visa condition, known as Condition 8107, will be applied to your visa. This visa condition relates to work conditions and stipulates that you must work:
> 
> •in the occupation you were nominated for; and
> ...


At FAQ - Subclass 457 Visa Holders Affected by the Economic Downturn you can find


> My subclass 457 visa does not expire for another two years. Why do I have to leave the country if I lose my job?
> Your subclass 457 visa has been granted to you on the basis of your being sponsored by your former employer and your subclass 457 visa is subject to condition 8107. Condition 8107 provides that you must not:
> •cease to be employed by the employer, or an associated entity of the employer, who sponsored you for the subclass 457 visa
> Example: Become unemployed or change employer; or
> ...


Though it seems from the write-up in both instances the 8107 is more about working for a sponsor to maintain the condition of your visa than anything else the placement of 
_•engage in work for another person, *or for themselves, while working for the sponsor.*_ is one of those niggly type phrases that legislative drafts people just have a habit of dropping in whether they or anyone else were really cognisant of the meaning and it becomes even a bit more stupid when the reality of the internet means a web site can be produced from just about anywhere on the planet.
It seems the full 8107 conditions are not on the Immi web site and you'll have to visit ComLaw - Homepage to search the Immi Act for a read.
I would however drop a line to the Global Feedback Unit - Contact Us - Compliments and Complaints - Department of Immigration and Citizenship and see if you can get a sensible answer in writing from an Immi section as a means of confirming that whilst working for a sponsor you can in fact in your own time develop a web site.
And I would specifically ask them that in view of the line in the FAQ I have highlighted.
When I have a moment I may even do myself for it does seem a bit out of place and is the type of inconsistency that agents and solicitors could possibly earn heaps from clients in challenging laws just because they are badly worded.


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## noco235 (Sep 19, 2010)

Hi
I am new to this forum. I am on 457 visa and have 8107 and 8403 conditions on my visa label. I called the immigration department recently regarding the subject matter, as I would like to be a partner of my husband business. The immigration officer informed me that “as long as I have a full time job with my sponsor, I am entitled to do anything legal I want to in Australia other than being employed by someone else who is not an approved sponsor”. However, some migration agents told me that I cannot include my name in my husband business registration otherwise I will be violating the 8107 conditions. Can the immigration officer be wrong giving wrong advice?


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## Wanderer (Jun 16, 2007)

As per my earlier advice which I feel is consistent with the 8107 condition and I believe the advice of the Immi officer is consistent with that, I am not familiar with the 8403 condition and will not comment in that regard.
The essence of the regulations is that the 457 requires you to be employed by an employer sponsor and becoming a partner of a business is possibly getting into a greyer area for it raises the question of whether in fact you will be getting income from that business and seen to employed as such rather than a partner.
I would not having your name as a partner in the business would make you even more of an employer.
What visa does your husband have and if he has PR, is not getting a partner visa an option.


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## noco235 (Sep 19, 2010)

Hi Wanderer, thanks for your quick response. My husband visa is a dependent visa under my 457 visa. He is running a small cafe by himself and I am helping him at the cafe during weekends. All the money invested is my money and I don't know whether his business will be making money for the next few years. The main reason for adding my name to the business is for the benefit of negative gearing purpose. I will save 0.465 tax on every $1 business loss.


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## Wanderer (Jun 16, 2007)

So it's more like an investment and if you are not working there for wages I'd suspect that it is not a problem and you may want to discuss it with an accountant to see what the best way of arranging it is and if one has suggested you be shown as a partner, that ought to be OK but again I'd stress if it can be structured so you definitely are not seen as being employed that is the main thing.


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## noco235 (Sep 19, 2010)

Thanks for your advice!


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## agj5 (Feb 10, 2012)

Hi Schott19:

It's been over a year since you posted this question and I was wondering how you went with this as I want to star a business as well but I'm on 457 and I'm not sure if I am allowed.

Were you able to register the business under your name?

Thanks.


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