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

E info@aiia.com.au

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.