In an interview with David Speers of Sky News, Canberra, DIBP Minister Scott Morrison, holds firm on the Coalition governments determination to reduce red-tape on skilled immigration but adds that there will be a focus on 'integrity measures' of the programme.

David Speers: The Immigration Minister Scott Morrison is with me this afternoon. Thank you for your time. I want to start on the 457 visas. Unions have been expressing concern today about a loophole they say has been reopened that is going to allow more foreign workers in at a time when unemployment is rising. Explain to me exactly what the government has done here.

Minister Morrison: Well it is quite a minor change. What it involves is that when someone has already been approved to be a sponsor of 457s rather than having to go back and fill out all the paperwork again to have that renewed when they have reached a certain number of employees they can continue to do it but every single 457 employee who has been employed must satisfy all the tests that are currently required for finding an Australian do the job first. So there is no change to that.

David Speers: Does it mean for example that employers will no longer face a penalty if they bring in more than they had applied for?

Minister Morrison: What it means is if they want to employ someone on 457s they need to satisfy all the advertising tests and all of the tests of finding an Australian worker first and if they can't find an Australian worker then we are not going to make them go back and fill out a whole bunch more forms which costs them time and money for their business. So this is about regulation reduction, removing the union red tape that was put there by the previous government.

Credit card charges are expected to be introduced from 22 March 2014 by DIBP on all its fees and charges. RMAs should properly adjust their costing disclosures to clients to reflect the expected price increase noting that the RBA allows for ‘reasonable costs’ to be recovered.

In aligning itself to commercial practice and improve its bottomline, DIBP has decided to recover credit card merchant fees from clients by adding a surcharge on credit card payments for all payments to DIBP. The surcharge could boost DIBPs bottomline by $14 million a year.

DIBPs financial statements indicate that despite a revenue of about 1.48 billion in FYE 2012-2013, its expenses, which largely come from border protection spending, led to a deficit of about $94 million for the year.

DIBP has not provided any indication of what the additional charges will be. Commercial operations charges vary widely and may range between 1.5% and 3% (sometimes even more). However, government agencies’ rates are generally half of that range. For instances, currently the Australian Tax Office (ATO) charges credit card merchant fees for payments at the rate of 0.42% for Visa and MasterCard payments and 1.45% for payments by American Express cards. DIBP is expected to announce its rates soon.

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.

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.