The recent fall of the Australian Dollar has seen those arriving and transferring money in to Australia from overseas receiving many more Dollars in return for their native currency.

Our foreign exchange partners TorFX informed us that two weeks ago a client moving to Australia from the UK would have received around $1.74 for their Pound, today (24/09/14) they could expect closer to $1.85. For a family transferring £100,000 from a house sale that would be the difference between receiving $185,000 against $174,000 – a difference of $11K!

TorFX can also offer forward contracts for clients who aren’t making the move yet but want to lock in the rate whilst it is a favourable high.

The DIBP’s blog has issued a reminder to students that DIBP takes any breach of work rights conditions on students’ visas seriously and suggests that even working over 5hours amounts to a breach that can lead to a cancellation of the student visa.

The purpose of the work conditions offered as part of a student visa is to provide an opportunity for international students to gain cultural experience during their stay in Australia, and help students improve their English language skills, notes the DIBP. 

“However it is important to recognise that international students should not rely on work in Australia to pay for the costs of their studies and living expenses,” the statement notes.

Most international students are restricted to a maximum of 40 hours work per fortnight while their course is in session and may only work unlimited hours during scheduled course breaks. These conditions protect students from the pressures of excessive work commitments which might mean that they are unable to finish their course successfully.

DIBP provided the following examples on how work conditions on a student visa operate:

Sydney TAFE has been under investigation for alleged fraud in its use of millions of dollars from a training program for students on 457 visas, reports The Sydney Morning Herald.

According to the report, “Sydney Institute of TAFE generated $3.3 million last year from migration agents who were paid $380,000 in commissions for recruiting students on 457 visas.”

“A NSW Department of Education officer alleges money received under the visa program – which is meant to be spent on training for Australians and permanent residents through student scholarships – is being spent for other purposes including the payment of commissions to migration agents“ the report states.

Migration Alliance is of the view that a full audit of Training Benchmark A should be undertaken by the DIBP or some other body to ensure that the funds are spent properly and not left sitting in accounts or even worse being improperly misdirected.

In addition to this, the Migration Alliance notes that recently, the Victorian Training Market Half Year Report revealed that some TAFEs were at financial risk. Migration Alliance wrote to Senator Michaelia Cash, Assistant Minister, DIBP and Kim Vance, Director, Program Delivery DIBP with these facts and the concern that employers are being encouraged to send funds to institutions that may be at financial risk.

DIBP has announced that it is undertaking a major review of the skilled migration and temporary activity visa programmes with most visa subclasses across the skilled migration and temporary activity visa programmes to be reviewed.

“In the current climate of globalisation, it is imperative for Australia’s long term prosperity to maintain a competitive advantage in identifying, attracting and retaining overseas skilled workers. The Australian Government has therefore placed great importance on the need for a clearer, deregulated skilled migration visa framework that will help shape and define Australia’s economic future,” states DIBP.

The cornerstones of the current system are expected to be reviewed via a comparative analysis of global migration systems and domestic needs.

DIBP suggests that the following, among other aspects of the current system, will be considered:

• the skills list available for migration will be reviewed and may be broadened by prescribing an occupation list that ‘excludes occupations available for migration to Australia’;
• the ANZSCO classification will be reconsidered;
• Skill standards will be aligned to industry needs whereby the industry decides on the skill standards;
• the points system and Skillselect will be reviewed to see if  they are the most suitable mechanism to manage skilled migration;
• the age threshold for certain occupations may be increased from 50 years;
• Migrants allowed in on lower English language proficiency may be required to show an improving standard over time.

The review invites members of the public to make submissions in line with the themes outlined in the discussion paper.  All submissions must be received by us no later than 5pm AEDT, 17 October 2014.

Will the ‘budget neutral’ target lead to a doubling of visa application charges? It certainly looks set to increase and potentially by a great deal given that revenue collected is only about half of the cost of operations. The industry can only hope that with the expected cost increases, the efficiency, speed and quality of services of the department will also increase.

The Australian Customs and Border Protection Service (ACBPS) has commenced a review into Australia's border-related fees, charges and taxes (Fees Review) on behalf of the Immigration and Border Protection Portfolio, Minister for Immigration and Border Protection, Mr Scott Morrison said in a statement yesterday.

Outside the Australian Taxation Office the Immigration and Border Protection portfolio is the biggest ‘tax collector' in the country. Each year border agencies collect around $3 billion in revenue from border related fees and charges. This is in addition to the billions that are collected by border agencies in excises and other taxes according to Minister Morrison.

However operational costs run over $6 billion.

Minister Morrison said one of the aims of the review is to “ensure that wherever possible we recover the costs of facilitating the movement of goods and people, to avoid drawing further on the general taxpaying community.”