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If you sponsor Subclass 407 (Training visa) participants, you’ve likely noticed nomination refusals climbing sharply in recent months — and applicants receiving unexpected outcomes on the visa application that follows. The Migration Institute of Australia (MIA) went directly to the Department of Home Affairs for clarification on what’s changed, and published the Department’s response to its members. Here’s what sponsors need to know.
Why Subclass 407 refusals have spiked
According to the Department’s response to the MIA, the volume of Subclass 407 nomination and visa applications has increased significantly since July 2026, and most of these applications have not met the relevant eligibility requirements. The numbers the Department shared are striking: of around 8,000 nomination applications finalised since July, approximately 6,500 have been refused.
The knock-on effect is a substantial backlog of visa applications sitting behind those refused nominations. The Department currently has:
- around 2,500 visa applications where the applicant has already been issued a section 57 natural justice letter following the nomination refusal, and
- a further approximately 4,000 applications where the nomination has been refused but the visa application hasn’t yet progressed.
The Department expects refusal volumes to remain high “in the coming weeks and months,” given how many applications on hand are without a valid nomination.
What happens after a nomination is refused
For sponsors, the more important question isn’t why refusals are rising — it’s what happens next to the visa application once a linked nomination is refused. The MIA sought clarification because there had been a previously understood practice: a two-week gap between nomination refusal and a decision on the visa, plus a section 57 notice, in cases that didn’t involve Genuine Temporary Entrant (GTE) concerns. The Department confirmed that practice largely continues, but with some important nuance.
Where GTE is not in issue: the Department will generally allow 14 days after the nomination refusal before deciding the visa application. This is a practical window, not a formal notice period — the Department describes it as intended to give clients time to consider their options.
Where the applicant is found not to satisfy the GTE requirement: the visa can be refused on GTE grounds without a prior section 57 notice at all.
Section 57 natural justice letters are used specifically where a nomination is no longer in effect and the Department is considering refusing the visa purely because there’s no current nomination in place. Where one is issued, the applicant has a standard 28 days to respond.
In short, once a nomination is refused, a sponsor and their visa holder should expect one of two things: a section 57 letter giving 28 days to respond on the nomination issue, or a refusal on GTE grounds after as little as 14 days, with no separate notice.
What this means for sponsors
If you have a 407 participant whose nomination has been refused, the clock is effectively already running — and the response window may be shorter than you’d expect if GTE is a live issue. The Department’s own guidance to the MIA is that affected applicants should be monitoring the nomination status closely and be ready to act quickly on one of two paths: lodging a fresh nomination promptly, or withdrawing the visa application altogether.
Both of those options carry real consequences for a training placement, program timelines, and the individual’s ongoing status in Australia — and the right call will depend on the specific reasons for the nomination refusal and whether GTE concerns are in play.
Roam Migration Law can help
If you’re sponsoring a Subclass 407 participant and a nomination has been refused, or you’ve received a section 57 letter, it’s worth getting advice before the response window closes. Roam Migration Law can review the refusal reasons, assess whether a fresh nomination is viable, and advise on the best path forward for your organisation and your visa holder. Get in touch with our team to discuss your options.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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