Independent review of
integrity in the subclass 457 programme
AIIA response
April 2014
Contact for this submission:
Suzanne Roche
Ground Suite B, 7-11 Barry Drive,
Turner 2612
Australia
T 61 2 6281 9401
W www.aiia.com.au
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About AIIA The Australian Information Industry Association (AIIA) is the peak national body representing
Australia’s information technology and communications (ICT) industry. Since establishing 35 years
ago, the AIIA has pursued activities aimed to stimulate and grow the ICT industry, to create a
favourable business environment for our members and to contribute to the economic imperatives of
our nation. Our goal is to “create a world class information, communications and technology
industry delivering productivity, innovation and leadership for Australia”.
We represent over 400 member organisations nationally including hardware, software,
telecommunications, ICT service and professional services companies. Our membership includes
global brands such as Apple, EMC, Google, HP, IBM, Intel, Microsoft, PWC, Deloitte, and Oracle;
international companies including Telstra; national companies including Data#3, SMS Management
and Technology, Technology One and Oakton Limited; and a large number of ICT SME’s.
We are pleased to provide this response to the Independent Review of Integrity in the Subclass 457
Visa Programme.
Overview comments The 457 visa programme makes an important contribution to productivity growth in Australia and in
the case of the ICT sector, is essential to addressing the genuine gap that currently exists between
the domestic supply and demand of ICT skills. Individuals who hold 457 visas not only fill real and
immediate needs within ICT organisations, but have proven to also make a significant and positive
contribution to the Australian economy generating more revenue than cost1.
By way of context, the Australian ICT services market is considered a mature and healthy market –
being the second largest in the Asia Pacific region. The most recent forecast for ICT services in
Australia shows a 3% compound annual growth rate in US dollars between 2012 and 2016 with an
estimated ICT spend of some 2.2% of GDP - some 42% of ICT services spending is in the form of
outsourcing2.
The ICT sector operates in a business environment that is global and highly mobile – more so than
any other industry. The skills required in the ICT industry undergo rapid change at the same time
that strong growth in demand is expected. This increases pressure to find suitably qualified staff in
emerging ICT specializations that are critical to delivering major ICT initiatives and driving
innovative solutions across the broad range of industry sectors.
The skills shortage in the ICT sector is therefore, a real concern - both in the immediate and long-
term. ICT job numbers are expected to double between 1999 and 20153 while ICT enrolments in
training and education have fallen nationally by 55 per cent over the last decade4.
AIIA members advise that the 457 visa programme is an integral part of their recruitment strategies
and is instrumental in cross training members of their respective domestic workforces.
While increasing recognition of the importance of science, technology, engineering and maths at all
levels of education; the new national ICT curriculum; the emergence of compelling and new
1 Access Economics, The Impact of Sponsored Temporary Business Residents of the Commonwealth
Budget, May 2002 2 Gartner papers 3 Job numbers: ACS Statistical Compendium, 2012. ICT applications: DIISRTE Higher Education reports
4 Department of Business and Innovation, Victoria, ICT snapshot – The State of ICT skills in Victoria,
January, 2012
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university programs like the University of Technology, Sydney Business Bachelor of Creative
Intelligence and Innovation; the Government’s Digital Careers Programme; and industry initiatives
aimed to encourage more people to take up ICT careers will help address current and projected
shortages over time5, the 457 visa programme is critical to local companies being able to solve
immediate skill shortage issues and delivering outcomes to their customers in all sectors. Without
appropriate and streamlined access to 457 visas companies are at risk of defaulting on existing
contracts, losing new contracts, falling behind international competitors in innovation and
productivity – or at least incurring significant delays in their ability to respond to market needs.
Noting the value of the programme and the important contribution it makes in supporting market
demands on the ICT sector, AIIA has identified the following key areas requiring attention:
Compliance
Regulatory requirements
Intra-company transfers
English language skills requirements
Training benchmarks
Market salary rates
Labour market testing
Specific comments AIIA notes the Terms of Reference for this Review, namely:
1. determine the level of non-compliance by sponsors in the subclass 457 programme, both
historically and under the current regulatory framework
2. evaluate the regulatory framework of the subclass 457 programme and determine
whether the existing requirements appropriately balance a need to ensure the integrity
of the programme with potential costs to employers in accessing the programme
3. report on the scope for deregulation while maintaining integrity in the programme
4. review and advise on the appropriateness of the current compliance and sanctions
AIIA’s comments broadly address all criteria, with a specific focus on criterion 2 and 3.
Compliance
With regard to concerns raised in the media over the last 12 months regarding the overuse of 457
visas AIIA note:
the cost of recruiting a candidate from overseas is significant and generally more costly
than recruiting locally in both dollars and time. In our experience, companies will only
turn to overseas labour when it is genuinely needed and with cost in mind, will test the
Australian market extensively before recruiting from overseas; and
the absence of specific data to demonstrate non-compliance by the ICT industry
5 See http://www.acs.org.au/news-and-media/news-and-media-releases/2012/acs-statistical-
compendium-2012 for further details re take up and retention statistics related to tertiary ICT
courses.
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AIIA members report difficulty recruiting ICT skills specifically in the area of new and emerging
technologies requiring high end specialisation such as, cloud computing, big data and data analytics,
optimisation and mobile applications and market research suggests there is also high demand for
those with IT security skills. See page 12 in the
http://www.clarius.com.au/media/clarius/clarius%20skills%20indicator%20-
%20october%202013.pdf
Regulatory Requirements
We note that the skilled migration program was reviewed and significantly modified in 2010 to
curtail independent migration and instead create a tighter linkage between the skilled migration
programme and industry. These changes recognised that employers are well placed to respond
dynamically to changes in the labour market and in the industry.
AIIA is concerned that in response to recent (i.e. over the last 12 months) media interest and
political focus in the programme, this current Review will result an overly regulated 457 process and
that in turn this will add more red tape and cost burdens to already difficult ICT recruitment
processes. This will inevitably translate to recruitment and project delays and impact the ability of
businesses to be appropriately innovative, productive, responsive and agile.
Cost of immigration agents
Several members, particularly small and medium sized enterprises (SMEs) and research bodies
advise that they are compelled to use immigration agents to ensure their compliance with 457 visa
regulatory requirements and that this adds considerable cost and typically slows down their
recruitment processes.
Members advise that rather than spending large sums on these third parties, they would prefer to
deal one on one with a Departmental ‘account manager’ to assist lodgement and compliance of
claims.
Cost of lodgement fees
Members have reported the impact of two recent increases in lodgement fees. Following the initial
significant increase in cost of lodgement fees on 31 August 2013, which included lodgement fees for
spouse and other dependents in addition to primary applicants, and the subsequent and further
increase on 1 September 2013, some members have advised the need to re-assess the viability of
continuing to use the 457 visa programme. The cost of the recruitment, application/lodgement and
engagement processes coupled with compliance overheads is simply becoming too expensive.
To offset increased lodgement fees which are not recoverable under a contractual clawback
provision, some members have made a deliberate policy decision to remove the benefit of employer
paid flights and temporary accommodation on arrival to Australia.
Members, specifically SME Australian companies, have reported that this is now impacting their
ability to attract 457 visa employees – and in turn their ability to compete for talent in areas of skill
shortage. Of major concern is their ability to remain competitive where the cost of accessing the
skills they need is increasingly prohibitive and their efforts unproductive.
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Delays in processing
High cost is exacerbated by Department of Immigration and Border Control visa processing times
that ultimately cause critical and costly delays to projects and contracts – consequences borne by
ICT businesses.
Recommendations
Reduce the cost imposition of current arrangements on businesses by establishing an ‘account manager’ model within the Department to work with companies to assist lodgement and compliance of claims.
Review the cost of current lodgement fees, in particular as they relate to spouses and dependents and suspend any further increases for a period of at least three years.
Review current processing arrangements with the explicit aim of reducing current visa processing timeframes.
Intra-Company Transfers
International and multi-national members of AIIA regard their global workforce as a single talent
pool from which they draw depending on need for specialist expertise and/or specific experience.
Personnel and teams are mobilised and remobilised as required for projects or contracts in different
locations and countries. This pool of skilled resources is experienced in the company’s ‘proprietary
knowledge’ and also deep industry specific expertise acquired through international assignments
which enables them to meet project deliverables in accordance with the company’s framework and
in conformance to those standards. It also enables greater understanding of the company’s
organisational culture and facilitates cross training by globally experienced staff that enables
work/projects to be done ‘better and faster’. In these cases, project roles will not usually be
advertised to the broader market unless there is no employee from within the global workforce
available. These positions are not viewed by these companies as ‘vacancies’ because no net
increase in staff is required to fill the role.
Several of our large international and multinational members advise that the majority (80% - 90%) of their 457 applications relate to existing employee. For this reason AIIA strongly recommends that current intra-company transfer arrangements be streamlined.
AIIA believes it is essential that the Australian work visa program operates to give effect to the
principles of free trade in services and that the Australian work visa program recognises the
operational requirements of multi-national companies and the practice of transferring relevantly
specialised personnel.
Acknowledging the benefit of supporting the local operation of global companies, several countries
have created dedicated visa pathways for intra-corporate transfers. For example:
The United Kingdom’s Tier II visa provides a dedicated visa pathway for intra-corporate
transferees who have worked for the same employer outside the UK for at least 12
months. Sponsors are pre-approved as a sponsor of certain occupations and receive a
licence number (‘certificate of sponsorship’) for inclusion as a reference number in each
visa application. No separate ‘nomination’ application is required to approve each
sponsored position.
Where the employer is assigning a skilled worker for less than 12 months, the minimum
salary is set at £24,000. The rationale for this is that workers coming in
for less than 12 months will not be competing with the domestic
workforce.
Additional requirements such as English language testing, labour market
testing and a higher salary level are only required if the person is
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applying for a longer period of stay, or if later applying onshore for a renewal, as this will
result in the person entering the domestic labour market.
AIIA supports the approach that requires these additional tests to be conducted at a later
stage, including where the person is renewing their visa onshore where they can continue
their existing role whilst visa processing is conducted.
Canada has a dedicated visa pathway for transferees who are considered executives,
managers, or specialized knowledge workers and work for a foreign company with a
qualifying relationship to the company in Canada. This approach is designed to give
effect to Canada’s obligations under the General Agreement of Trade in Services (GATS)
and is not subject to economic needs tests.
The United States has the L-1B visa which Congress created for the specialized knowledge
category in 1970. This visa category was created to support international companies temporarily transfer employees with a high level of knowledge and skill from abroad to the United States.
AIIA supports the option of a dedicated visa stream for intra-company transfers. This is consistent
with the global nature of the world economy and provides an opportunity for Australia to leverage
the capabilities of highly skilled professionals to help develop and strengthen Australia’s ICT
capability and long-term development and deliver customer outcomes based on global best practise
and experience.
AIIA’s suggests that where a company is regarded as a ‘trusted employer’, they would be subject to
a dedicated intra-corporate transfer visa stream which provides a simplified work visa application
process. Under the model, current process could be front-end loaded by pre-approving sponsors for
certain occupations and conditions of employment as part of an ‘intra-company transfer sponsor’
application process. This would negate the need for a separate nomination application, reducing the
overall processing time for a 457 visa.
Where intra-company transferees to Australia are assigned to perform highly skilled and technical
work in satisfaction of their contractual obligations to Australian clients, visa applicants under a
dedicated intra-company transfer pathway should not be subject to labour market testing, English
language testing, or skills assessments, if the assignment to Australia is 24 months or less. Where an
intra-corporate transferee is proposed for a stay beyond 24 months, either at initial application
stage or through a ‘renewal’ application, any testing could be imposed at that later stage. This
accommodates situations where it is appropriate for global companies to use their own expert and
proprietary knowledge to support their clients, including where this expertise needs to be brought
in from overseas.
Recommendation
Introduce a dedicated visa stream for intra-company transfers based on a model of
‘trusted employer’. The stream would be subject to a simplified work visa application
process. The model would allow, for eligible sponsors, pre-approval for certain
occupations and conditions of employment as part of an ‘intra-company transfer
sponsor’ application process.
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‘Known Customer’ Approach
AIIA strongly recommends that consideration is given to taking a risk-based approach to visa
processing. This would involve implementation of an "accredited" "known customer" model which
supports streamlined processing of applicants through an assurance framework. Known, low risk
business ‘customers’ would be entitled to accelerated processing – resulting in less handling of
individual applications by departmental visa processing officers thus reducing cost and processing
times.
It could be supported by a data driven approach, i.e. based on non-compliance relative to specific
industries or business groups. "Known customer" firms could have their own portal / account to
track the applications they are sponsoring. We understand there is already capability to support
this using the ‘Online Account’ functionality that was delivered as part of the previous Visa Pricing
Transformation. The "known customer" approach will also facilitate the visa aspects of intra-
company transfers.
Recommendation
Introduce a risk based ‘known customer’ model to support streamlining of current visa processing arrangements.
English language test
One of the requirements of a 457 visa application is that the applicant has at least a vocational
level of English language proficiency6. This is to ensure that all employees have the necessary
communication skills to understand occupational health and safety and workplace welfare
information7. The criteria for approval of a 457 visa require applicants to provide evidence of
English language proficiency unless they:
are the holder of a passport from the USA, UK, Ireland, Canada or New Zealand; or
are otherwise exempt from the requirement.8
With the 1 July 2013 changes to the legislation, the available exemption was changed from a skills-
based exemption to a salary-based exemption. Prior to July 2013, trade occupations remunerated at
below $92,000 were subject to English language testing, whereas ‘white collar’ managerial and
professional occupations were not.9
On the understanding that the English language requirement is intended to, in particular, protect
workers performing more physical work at more dangerous workplaces communicate and understand
work health and safety instructions, AIIA contends that an occupation-specific rather than salary
based exemption is more appropriate – and consistent with the policy intent of the requirement.
The current salary threshold for determining whether English language should be tested is not
sufficient to capture the important difference in workplace environments with very different work
and safety requirements. Shifting the focus to professional and managerial applicants has created
6 Regulations, Sched. 2 r. 457.223(eb) 7 Minister for Immigration and Citizenship, Visa Subclass 457 Integrity Review Issues Paper #2: English
Language Requirement / Occupational Health and Safety, August 2008, page 11. We note that for
some occupations, the relevant professional regulatory body stipulates levels of English language skills and the Migration Regulations accommodate these higher standards. However this does not
apply to IT occupations. See: Regulations, Sched. 2 r. 457.223(ea) 8 Regulations, Sched. 2 r. 457.223(4)(eb); Sched. 2 r. 457.223(11); Assistant Minister for Immigration and Border Protection, Tests, scores, period, level of salary and exemptions to the English language
requirements for Subclass 457, Instrument no. 9 of 2014, F2014L00327 [21/03/2014]
(‘Instrument’). 9 Regulations, Sched. 2 r. 457.223 (6)(a); Minister for Immigration and Citizenship, Level of salary and exemptions to the English language requirement for Subclass 457 (Business (Long Stay)) visas
(clauses 457.223(6)(a) and 457.223(11)), Instrument No. 48 0f 2012, F2012L01275 [01/07/2012].
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unnecessary process and project costs and delays. Members suggest that the exemption should apply
for example to ANZCO Levels 1, 2 and 4.
In any case members advise that their 457 visa employees are
invariably university educated and required to be proficient in the
English language. The requirement to provide evidence of English
language proficiency has impacted significantly on the lead time
required to prepare a 457 visa application. It requires applicants to
either:
provide evidence of at least five consecutive years of
education in which the language of instruction was English;10 or
undertake an IELTS English language test and achieve the required score.11
Even where 457 visa employees have a university degree, because the requirement is for five
consecutive years of education in applicants are required to source evidence from their secondary
school – sometimes many years after graduation. In some cases colleges/schools simply do not issue
such certificates as it is well known that they teach in English and their websites confirm the same.
Where obtaining such a letter is not possible, or if the applicant took a break between secondary
school and university, the only recourse is to sit the IELTS test, which in the larger centres are
booked out weeks in advance. The time taken to try to source evidence from various institutions
and/or secure a place in an IELTS examination creates significant delays which affect our members’
ability to deliver project deliverables to their Australian clients on time. These processes also
impose additional expense and anxiety on applicants.
Recommendation
Restore ANZSCO groups 1,2 and 4 to the classes of applicants that are exempt from demonstrating English language proficiency; or
Reduce the current requirement of five years’ consecutive study in English to three years. This would mean applicants would be able to demonstrate English proficiency on the basis of their university qualifications.
Training Benchmarks
The applicable training benchmarks for the purpose of
457 visa regulation state that a business that has been
operating for a period of at least 12 months is required to
demonstrate:
10 Instrument at 7(a). 11 Instrument at 7(b).
Case scenario: Employees
in the ICT sector servicing
Australian clients work
with “English” as the
base language. There is
no implicit need for them
to prove their English
language skills
Case scenario: The company has a fluid
workforce with large numbers of
employee moving in and out of
Australia. Given the payroll variation
per month (both positive and negative)
(see below) it is difficult to determine
the training expenditure for the year if the “current” payroll is used.
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Recent expenditure, by the business, to the equivalent of at least 2% of the payroll of
the business, in payments allocated to an industry training fund, and a commitment, by
the business, to maintain expenditure in each fiscal year, to that level, for the term of
approval as a nominator; or
Recent expenditure, by the business, to the
equivalent of at least 1% of the payroll of the
business, in the provision of training to employees of
the business, and a commitment, by the business, to
maintain expenditure in each fiscal year, to that
level, for the term of approval as a nominator
AIIA members have identified that the methodology used to
determine the training expenditure for an organisation
should be more flexible and more closely aligned with how
businesses actually operate. This includes recognition that
businesses typically have a fluid workforce with sometimes
substantial numbers of employee movements in and out of
Australia from month to month, resulting in significant
variations in the monthly payroll. An organisation should be
able to determine a budget for training expenditure (as with
other expenses) at the beginning of the financial year (using
the previous year’s actual payroll figures), and work towards
meeting that training benchmark for the following year. This
will allow companies to work with a fixed and structured
budget to manage training related expenditure.
Recommendation
Improve the methodology for determining existing training benchmark requirements by allowing organisations to determine a budget for training expenditure, based on the actual payroll figures of the previous year.
Market Salary Rates
Standard business sponsors must meet certain benchmarks in relation to the salary paid to 457 visa
holders. Regulation 2.72(10)(c) provides that the earnings proposed at the time of the 457
application must be:
no less favourable than the terms and conditions that: (i) are provided; or (ii) would be provided;
to an Australian citizen or an Australian permanent resident for performing equivalent work at the same location. 12
This is a change from the regulation as it existed prior to 1 July 2013, which required that the
applicant be paid an amount equivalent to Australians performing equivalent work in the same
workplace at the same location.
Where there is an Australian performing equivalent work in the same workplace, that Australian
provides the benchmark for the nominated position.13 However where there is no such equivalent
Australian, the removal from the regulation of the reference to the same
workplace compels sponsors to provide the Department with evidence of market
rates external to their business. This is distinct from a requirement for the
12 Migration Regulations 1994 (Cth) (Regulations) r. 2.72(10)(c); r. 2.72(10AA). 13 Regulations, r. 2.72(10AA).
Payroll Variation
Month on Month
% Actual Payroll Figures
4.50% $893,833.03
-0.27% -$56,200.30
0.47% $98,033.22
9.83% $2,043,240.74
-6.69% -$1,527,764.23
-1.03% -$219,248.24
-0.09% -$18,537.24
11.41% $2,404,981.40
-7.22% -$1,694,655.32
8.47% $1,845,572.74
-11.04% -$2,607,672.81
2.77% $581,716.12
-2.73% -$590,539.86
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sponsor to demonstrate to the Department the methodology applied to arrive at the remuneration
proposed. The method through which sponsors are obliged to demonstrate market rates is specified
by Ministerial Instrument.14 The relevant instrument15 prescribes the acceptable sources of market
rate information in order of preference, as follows:
1. by comparison to any relevant Fair Work instrument; or 2. if there is no relevant Fair Work instrument, by reference to:
Fair Work instruments in similar workplaces; or failing that
Information available from unions and employer associations; or failing that
Other market data from: o Australian Bureau of Statistics o Job Outlook o Remuneration Surveys
o Job vacancy advertisements. Members advise the difficulty of ascertaining consistent market rates where these differ between sources and regions. The divergence of these results shows that no salary source can reliably provide a definitive market salary rate.
Further we are advised that Department officers are generally unwilling to accept market salary evidence expressed in wide ranges. There is no method by which a sponsor trying to determine ‘market rate’ might reasonably be expected to reconcile the divergent rates reported by different prescribed sources. Even in the case of the two prescribed Commonwealth Government sources – ABS and Job
Outlook – variances are significant. With no way for sponsors to qualify the reported rates, including where it is necessary to discount benefits that do not fit the migration law definition of ‘earnings’, such as performance-based bonuses or workplace parking16 the task of providing the Department with evidence of a particular dollar
figure as ‘the’ market rate is extremely difficult.
AIIA’s view is that market salary data should be from an agreed credible industry source rather than
either a “generic” market salary instrument published by government agencies or a selection of
unqualified divergent sources.
AIIA with Aon Hewitt produce the AIIA Survey of Salaries & Remuneration Packaging for the ICT
Industry on a biannual basis. The survey is specific to organisations within the ICT Industry and has
grown rapidly since its inception in 1988, reflecting the increasing emphasis on IT as the driving
force behind progressive organisations in Australia. The survey contains remuneration data for over
40,000 employees from over 70 organisations operating in all states of Australia. Market data is
available for approximately 260 individual positions.
14 Regulations, r. 2.72(10AA). 15 Minister for Immigration and Citizenship, Specification of method to determine terms and
conditions of employment that would be provided to an Australian citizen or an Australian permanent resident to perform equivalent work in the same workplace at the same location (reg 2.72(10AA)),
Instrument No. 113 of 2009, F2009L03515 [14/09/2009]. 16 Regulations, r. 2.57
Case scenario: According to market
salary data, the salary range for a
specific ICT role is $110k to $140k. A
457 visa holder is paid a salary of
$125k based on the company’s salary
grid of role maturity, performance
rating etc. An Australian employee
however, in the same role is at a
salary of $150k.This is because the
employee joined the company at a
salary of $120k, but because he has
been part of annual compensation
reviews his salary is now at $150k – and
therefore outside the market salary range.
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Recommendation
The AIIA AON Hewitt Salary Survey instrument is applied as the benchmark to inform ICT
market salary rates; or
Regulation 2.72(10)(c) is amended to restore the words “in the same workplace”. This
would allow sponsors to use their own method for determining and demonstrating what
an Australian is or would be paid to do the same work. This would also require a
legislative change to the Migration Regulations.
A new Ministerial Instrument should be issued which moves away from prescribed
methods and sources and instead allows sponsors greater flexibility in the way they
determine and demonstrate what an Australian is or would be paid relevant to the
particular workplace.
Labour Market Testing
While many AIIA member companies are exempt from the current labour market testing
requirement, we wish to reiterate that we do not support labour market testing for ICT related
occupations and consider any move to extend current policy as seriously detrimental to the viability
of Australian based ICT businesses.
Australia is currently experiencing a genuine ICT skills shortage in the area of ICT. Imposition of a
labour market testing requirement would impose unnecessary and costly red tape and expense on
employers and cause untenable delays for projects and contracts.
AIIA’s submission relating to the 2013 Labour Market Testing requirement can be accessed here.
Other sponsorship visa issues In addition to the specific issues raised in relation to 457 visa arrangements we would take this
opportunity to also raise the following visa sponsorship related issues.
Students
Currently it takes at least 12 weeks to process a 402 student visa notwithstanding that these
students typically only have a finite period, which fits within their study program, to come to
Australia and participate in a training program. These processing delays mean training cannot
commence until the 402 visa is granted. As a result students need to be financially supported while
on an Electronic Travel Authority (subclass 601) or e-visitor (subclass 651) visa without studying.
This results in costs to sponsoring research bodies and additional anxiety for students.
In addition to the above we would highlight the need for Government to be mindful of the rapid rise
of MOOCs, and the extent to which the "value" of the Australian student visa product is being
diminished and disrupted. While we understand there are many factors impacting student visa
processing times - including peak periods in the academic year, it is timely to ensure visa
applications for students are streamlined to ensure Australia continues to attract overseas student
interest.
Researchers
A member has advised of maintaining research staff on bridging visas for up to
some 18 months because the substantive visa application has not been
considered a priority by the Department.
While researchers are required to produce and submit research papers
for overseas conferences, they are unable to travel overseas to speak to
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their paper unless they obtain a specialised bridging visa (BVB) which is provided to them
while their substantive visa is being processed. Processing delays result in increased
costs and onerous administration costs on employers.
600 (Business) Visa Series
For multinational companies that have global teams, it is crucial for managers and experts to be
able to visit their regional teams in other locations - countries. Recent changes to the 600 visa have
resulted in employers having to bring staff to Australia on a 400 visa which is a substantially more
onerous and regulated process.
From 23 March 2013 changes to the visa definition mean short term business visits only cover
Internal meetings or training sessions as a participant (but not as the trainer)
Attending a conference or seminar (but not as the presenter or representative)
Business negotiation meetings
Some incidental work - restricted to phone calls and emails
This new and rigid definition has made it substantially
more difficult for organisations to bring staff to Australia
to exchange skills with Australian workers. Visitors are
essentially prohibited from working on their ‘day job’
functions for their home countries, i.e. they are not
permitted to work on home country projects while in
Australia.
In cases where staff are brought to Australia for a period
of one week for a few local meetings, applications for
600 visas are being rejected on suspicion they will be
doing non-incidental work. They are then required to
apply for a 400 Temporary Work visa which has is more onerous and costly and takes approximately
3-4weeks to process.
Conclusion As noted throughout this Submission, AIIA strongly supports the continued role of the 457 visa
programme in developing Australia’s current and future ICT capability.
The programme plays a critical role in addressing the current ICT skills shortage and provides the
opportunity to contribute to the development of Australia’s own ICT skills base and expertise.
Importantly, the programme ensures ICT product and service providers have access to the expert
skills they need to respond to increasing market demand for a range of new and emerging
technology solutions.
Further AIIA is of the firm view that the 457 visa program contributes to Australia’s productivity
growth, complementing Australia’s existing skills base across a range of industry sectors.
Case scenario: A software engineer
visits Australia to catch up and
exchange skills with a local team they
manage. In between team activities,
they will be doing engineering work
while they are in Australia, including
designing, writing and reviewing code
for their US projects. They can’t use
the 600 visa and will have to apply for the more onerous 400 visa.