The media and unions have begun a widespread campaign against the lifting of the cap on the number of workers that employers can bring into Australia on the sc457 visa. This goes against the view of both the coalition government and the business community who maintain that s457 program is targeted at specific skills shortages and that employers need more flexibility and less red-tape at a time of economic volatility. How do you fill the job gap?

According to parliamentary documents, the sc457 program is “driven by employer demand, and built on the premise that it does not undermine job opportunities for Australians. It allows employers to access overseas workers where a genuine skill shortage exists or, in effect, where a suitably qualified Australian worker is not available.”

The parliamentary paper by Gareth Larsen (The subclass 457 visa: a quick guide), also states, “Businesses must make a commitment to meet the prescribed training benchmarks for the program, which require an ongoing commitment to training activities for Australian citizens and permanent residents, and that at least 75 per cent of their workforce are Australian residents or citizens. Employers must attest to having a strong record of, or commitment to, employing local labour and non-discriminatory employment practices. Employers must pay employees a rate equivalent to comparable local wages, and must not underpay their employees or deduct money without the employee’s consent for such purposes as rent or board. Employers must also provide a clear understanding of the skills and experience required for the position, and identify where the employee will be working.”

The Migration Alliance notes that the sc457 program has strict guidelines and places onerous obligations on business sponsors. The program is aimed at occupations and industries which have a skills shortages as determined by extensive research by the Department of Employment and related agencies. 

Recent DIBP figures indicate there are 90 780 primary sc457 visa holders in Australia of whom almost two-thirds are categorised as professionals and managers. Almost half of all sc457 visas were granted to foreign workers in the accommodation, telecommunications and healthcare, whereas the projected job-cuts are largely in manufacturing, retail and government sectors. Caps across the board on s457 will thus hurt growing businesses.

Leaked emails tell DIBP staff not to use the word 'sympathise' in their letters. 

DIBP staff have been told not to use the word "sympathise" in correspondence from ministers, in a directive passed on by senior bureaucrats last month, reports the ABC.

The ABC has revealed that it has received a DIBP internal email which instruct DIBP staff to use the word 'acknowledge' instead of 'sympathise' in their correspondence.

Recently, in Newsletter 419 of March 2014 Migration_Newsletter_419 (Click here for a copy), Peter Bollard writes of DIBP's migration agent A and B lists as follows:

A and B lists and platinum cards

In previous newsletters the writer has mentioned that migration agents can use FOI requests to seek information held on them by DIBP.

Coalition to reboot significant investor visa programme

The Coalition government today announced a review will be undertaken to reboot the significant investor visa (SIV) programme, Assistant Minister for Immigration and Border Protection, Senator the Hon Michaelia Cash said.

'We recognise there are significant implementation issues that are currently holding up the progress of this programme and want to get this review underway to send a clear message that Australia is open for business on this visa,' Minister Cash said.

The review, to be undertaken by the Department of Immigration and Border Protection, will look at all options to enhance the significant investor visa programme. The internal review will be conducted in close consultation with the financial services industry and stakeholders.

'There will be particular emphasis on examining ways of enhancing greater flexibility and investment choices to significant investor visa applicants, as well as faster processing of applications for this visa. The review will also examine the possibility of introducing a new permanent visa stream for investment migrants,' Minister Cash said.

'From the programme's commencement in November 2012 until September 2013 when the election was held, just 28 visa applications were approved with $140 million in complying investments,' Minister Cash said.

'Since the Coalition Government came to office, more than 116 significant investor visa applications have been approved with more than $580 million in complying investments.

'In January this year, more than $165 million in complying investments came through the programme compared with Labor's monthly peak of $30 million in July last year.

'This review will further assist the programme to attract international investment to Australia in the competitive global market.'

The significant investor visa programme is designed to facilitate migration of investment migrants who are willing to invest a minimum of $5 million in a complying investment in Australia over at least a four year period.

Terms of reference for the review broadly cover the policy settings of the significant investor visa, application processing arrangements, and international promotion of the programme.

The Abbott government is reviewing and plans to expand the significant investment visa program, which has granted four-year visas to 116 foreigners in just over a year. The review will seek ways of speeding up approvals and will consider expanding the assets the $5 million can be invested in beyond bond and commercial property funds, possibly to venture capital and start-ups, according to Business Review Weekly.

There are expectations that the review of the program could open up a direct pathway for foreign capital investment into start-ups. Analysts say the current program is too narrow as it largely restricts investments to commercial property and bonds.

“One of the biggest shortcomings of the current regime is that the list of eligible asset classes does not include intermediated investments through private equity and venture capital funds,” says Yasser El-Ansary of the Australian Private Equity & Venture Capital Association Limited in an interview with Smart Startups.

BRW reports that Assistant Minister for Immigration and Border Protection Michaelia Cash said the review could result in the introduction of permanent residency visas for investment migrants. The review is unlikely to allow investment in houses and apartments because of the political repercussions from the fear of Australian buyers being squeezed out of the market.

 “We recognise there are significant implementation issues that are currently holding up the progress of this program and we want to get this review under way to send a clear message that Australia is open for business on this visa,” Senator Cash said.

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