Month: July 2016

corporate immigration

Australian Corporate Immigration Implications Following the Re-election of Prime Minister Turnbull

Posted by Rebecca Berkovic on

With a mandate to begin forming the new Federal Government of Australia, re-elected Prime Minister, Malcolm Turnbull, will be able to resume his implementation of the ‘Ideas Boom’  – ie the ‘National Innovation and Science Agenda’ which supports changes to the visa system to attract overseas talent and investment to Australia.

However corporate immigration policies were seemingly absent from the 2016 election campaign focus of both major Australian parties.  We are therefore yet to see how the newly formed Government will impact on corporate immigration, potentially affecting Australian businesses sponsoring overseas employees as well as international companies required to send employees to Australia.

The main visas to monitor at this stage are:

  • Temporary Work (Skilled) (subclass 457) visas;
  • The Short-Term Mobility visas; and
  • The Entrepreneur visas.

Subclass 457 Visas

The subclass 457 visa remains the most common means of Australian employers sponsoring overseas workers.  It is by no means a simple process and involves employers and visa applicants meeting rigorous requirements, from training expenditure to salary thresholds, English language requirements and labour market testing.

Australia’s premier foreign policy think tank, the Lowy Institute, conducts an annual opinion poll of Australian attitudes to key issues.  In relation to the economy, the report from June this year states that opinions are as follows:

“Optimism about the Australian economy has lifted, with 70% of Australians now ‘very optimistic’ or ‘optimistic’ about ‘Australia’s economic performance in the world over the next five years’, up seven points since 2015.”

Positive public opinion regarding the economy generally assists in paving the way for a more generous corporate immigration policy to enable Australian businesses (especially in the technology and innovation industries) to retain and attract overseas employees where they are unable to find local labour.  Therefore, the Turnbull Government is unlikely to introduce drastic restrictive reforms to the subclass 457 visa.

Short-Term Mobility Visas

The proposal for a new Short-Term Work visa enabling businesses to bring in specialist workers for up to a year seems to have been abandoned by the Turnbull Government.

This visa would have filled a gap in the immigration program where a business requires specialist services for greater than the three month period usually provided by the Temporary Work (Short Stay Activity) (subclass 400) visa, and wishing to bypass the red tape involved in applying for a subclass 457 visa, which can be granted for up to four years.

Therefore, businesses requiring services from overseas employees will generally need to continue to apply for the subclass 400 or subclass 457 visa, depending on the nature of the position and relocation requirements.

Entrepreneur Visas

We are yet to see whether the newly formed Government will implement the new Entrepreneur visa, which was announced in December last year.

Discussion regarding access to Australian visas by entrepreneurs was intended by the Turnbull Government to encourage highly skilled workers to travel to Australia.  Also proposed was strengthening the permanent residence pathways for certain postgraduate research students.

The new Entrepreneur visa was intended to be introduced in November 2016 and the permanent residence pathways for postgraduate research students was to come into effect in December 2016.  It is now a case of ‘wait and see’ whether these reforms will be implemented by the new Turnbull government.

Future Corporate Immigration Policies

If the re-elected Prime Minister succeeds in implementing the ‘Ideas Boom’, it will be crucial for Australian businesses to be able to attract and retain the necessary talent and skills  from overseas.

It would not further the objectives  of the National Innovation and Science Agenda to restrict the subclass 457 visa program, especially in light of the implications for business now that the Short-Term Mobility visa has been abandoned.

If the Turnbull Government continues with its plan to introduce an Entrepreneur visa towards the end of this year, this may assist business in attracting overseas talent through a new Australian visa pathway.

For advice regarding Australian visas, please do not hesitate to contact us at info@hartmanlawyers.com.au for Australian immigration assistance.

Disclaimer:

The information on this website is intended only to provide a summary and general overview on relevant matters. It is not intended to be comprehensive nor does it constitute legal advice. You are advised to seek legal or other professional advice before acting or relying on any of the content contained in this website.

Australian election immigration

Election Focus by the Australian Federal Government Means Immigration Changes Take a Back Seat

Posted by Rebecca Berkovic on

On 1 July each year, the Australian Federal Government ushers in a host of changes to the Australian immigration program.  This year however, we have witnessed minimal changes in this arena given that the Coalition Government has been focusing its energy on re-election and political campaigning.

New 12-Month Work Visa on Hold

In March this year the Government proposed a new 12-Month Work visa called the Short-Term Mobility visa.  This visa was part of the Australian Government’s initiative to simplify work visas and enable Australian businesses more flexibility in terms of attracting skilled migrant workers for short-term periods of employment.

However, it seems with the Government focus being squarely on the election campaign, dealing with election results and a potentially hung-parliament, further discussion regarding the new Work visa has unfortunately faded into the background.

It seems that businesses looking to sponsor workers for a 12-month or longer period will need to continue to do so through the Temporary Work (Skilled) (subclass 457) visa route.  For short-term business stays, either the Temporary Work (Short Stay Activity) (subclass 400) or the Visitor (Business Stream) (subclass 600) visa may be appropriate, depending on the purpose of travel.

So Far, No Increase in the subclass 457 Visa Salary Threshold

There was discussion by the Federal Government about increasing the current Temporary Skilled Migration Income Threshold (TSMIT).  In order for an overseas employee to qualify for a subclass 457 visa, it is necessary for the base salary to be above the TSMIT, which currently stands at $53,900.

Business groups were concerned that an increase in the already high TSMIT would prevent Australian businesses from sponsoring overseas employees where required, especially in certain industries and regional areas where salaries across the board may be lower.

On 1 July 2016, it seems that the TSMIT will remain at $53,900 for the time being.  Amendments to this figure will depend on the constitution of the Australian Federal Parliament which at this stage remains unclear.

Overhaul of the Student Visa Program

One significant change to the Australian immigration program which came into effect on 1 July 2016 is the new framework for Australian Student visas for international students.  Introduction of this new system is intended to simplify the application process for students to obtain Australian visas in order to study in Australia.

From 1 July 2016, the only categories of Australian Student visas will consist of the following:

  1. The subclass 500 (Student ) visa; and
  2. The subclass 590 (Student Guardian) visa.

The new subclass 500 visa is intended to replace the current Higher Education Sector (subclass 573) visa, Postgraduate Research Sector (subclass 574) visa, Non Award Sector (subclass 575) visa, Independent ELICOS Sector (subclass 570) visa, School Sector (subclass 571) visa and the  Vocational Education and Training Sector visa (subclass 572) visa. The new subclass 590 visa will replace the current Student Guardian (subclass 580) visa.

For a more detailed description regarding Australian Student visa changes, our article is available here.

An Underwhelming 1 July 2016

As Australia faces election uncertainty with the possibility of a hung Parliament, Australians are eagerly awaiting results for the final vote counts.  In the midst of the political turmoil in Federal Parliament, immigration law and policy amendments are understandably remaining minimal.

We will keep our clients, colleagues and contacts updated with Australian immigration law changes.  However, at the present time, aside from Student visas, the status quo generally remains unchanged.

For advice regarding Australian visas, please do not hesitate to contact us  at info@hartmanlawyers.com.au for Australian immigration assistance.

Disclaimer:

The information on this website is intended only to provide a summary and general overview on relevant matters. It is not intended to be comprehensive nor does it constitute legal advice. You are advised to seek legal or other professional advice before acting or relying on any of the content contained in this website.