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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The Coalition government is pressing ahead with its promise to cut union rate tape on 457 visas.The ABC reports that the government has lifted the cap on sponsors that was introduced by the previous labour government.

The sc457 visa is designed to be responsive to employer needs for workers in particular industries and regions. Before the last election, the unions and the previous government claimed that there was widespread abuse of the program and as such foreigners were being favoured over Australians.

Under union pressure labour had introduced a series of measures which made it more difficult for employers to hire foreign workers. Among them was a cap on the number of approved nominations for sponsors.

Under the changes, employers are expected to be allowed to hire ‘any number of workers’ provided the relevant nomination, sponsorship and visa criteria are properly met. Details of the changes are expected to be released later today by the office of Senator Michaelia Cash, Assistant Minister for Immigration and Border Protection and Minister Assisting the Prime Minister for Women.

The Migration Alliance welcomes the changes. The sc457 has to be driven by the findings of the Australian Productivity Commission as well as industry bodies who are in tune with actual needs of employers. The changes will help lower employment costs by removing unnecessary red-tape and as such help expanding businesses meet their needs for skilled workers more quickly. Strong and growing local businesses will help increase employment opportunities in Australia.”

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The ABC reports that thousands of Taiwanese workers employed in some Australian abattoirs are being underpaid, abused and encouraged not to pay tax. It is reported that these abattoirs are using labour hire companies that hire sub-agents to recruit east Asian backpackers who readily fill-out all forms they are given (including ABN application forms) believing it’s just due process for getting the work.

The Meatworkers’ Union have made calls to disallow sc417 visa holders to engage in work on the basis of subcontracting by using ABNs. It says that this has led to workers being underpaid and abused. The Union wants workers to be hired directly and paid at the same rate as Australian workers.

 “We’re talking about excessive hours of work…gross underpayment…mistreatment…allegations of sexual harassment by some of the contract bosses…Not even half the minimum wage is being paid to these workers’’ says Grant Courtney, Secretary Meatworkers Union (Newcastle) who has reportedly been investigating the issue for the last two years.

The report specifically alleges that Primo, one of Australia’s leading abattoirs, uses specialised labour hire companies like Scottwell International to employ the Asian backpackers. Scottwell International however did not respond to the ABC queries. However, Primo has denied the allegation in a statement but indicated that it will investigation the matter:

“Allegations of workers being encouraged not to pay tax are untrue. We do not hire anyone under a 417 visa. We do hire the services of labour hire agencies…It may be more appropriate to address…them.” 

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With Canada’s cancellation of its popular investor visa leaving an estimated 65,000 applicants in the lurch, analysts are suggesting that this wealth which runs into the billions could now dart its way down south to Australia. It’s no wonder then that the Australian states are now stepping up the battle to attract Chinese investors by easing up their requirements for sponsorship under Australia’s significant investor visa programme.

The Australian programme essentially grants a 4-year renewable visa to investors who pour $5 million into Australia’s coffers and are sponsored by a state government. The states set their own criteria for sponsorship and have steadily eased these requirements in the battle to attract the migrating wealth.

The Australian reports that NSW is set to significantly ease its sponsorship rules. The reports states that Deputy Premier Andrew Stone is expected to announce at an industry event in Sydney today that, “NSW's business investment criteria has been reduced,” for the purposes of state sponsorship of the Significant Investor Visa programme.

“A requirement to spend $3m if establishing a business in Sydney will be reduced to $1.5m, and from $2m to $1m for businesses established in regional NSW. As well, requirements on the total funds to be transferred to cover business investment and settling expenses will be relaxed, dropping from $4m to $3m in Sydney and from $2.5m to $2m in regional areas. The move is designed to compete with Victoria, which has marketed itself in China to business migrants and has less specific or onerous conditions.”

The Australian reports that Queensland requires applicants to invest $2.5m in a business if it is Brisbane or the Gold Coast, which creates at least five jobs, with higher thresholds for property development businesses.

Earlier this year, some Australian television channels and tabloids ran a series of media stories with titles screaming, “JOBLESS Kiwis are flocking to Australia in search of work - and demanding the dole.” The Kiwis have however used the spotlight to march across Australian cities for equal rights. Among the march organisers is co-founder of Iwi n Aus, Filipa Payne, who said current legislation degrades the livelihoods of Kiwi families in Australia and called for better access to healthcare, education, and employment and voting rights.

Kiwi-bashing is not without precedent in Australia. However, there seems to be persistent confusion about the exact nature of the threat says Peter Mares, adjunct fellow at the Institute for Social Research at Swinburne University in the article: New Zealand's 'Bondi Bludger' and other Australian myths.

“It is unclear whether the core problem is that New Zealanders work too hard, and so threaten to “steal Aussie jobs”, or whether they are too lazy, and so threaten to sponge off the generous and unwitting Australian taxpayer,” he says.

Ms Filipa Payne in an interview with Newscorp called for urgent policy changes. She argues that these negative stereotypes are the sort of things that are actually preventing better policy for the Kiwis from being ratified.