IMPACT – MEDIUM

What is the change? Legislation that would authorise the government to charge employers who sponsor foreign workers a new fee to skill Australians did not proceed to a Senate vote because time expired during debate over amendments.

What does the change mean? The debate will continue at a later date, but in light of the legislative calendar, it appears that the skills fee will not pass before the introduction of the Temporary Skill Shortage visa in March.

  • Implementation timeframe: Ongoing.
  • Visas/permits affected: TSS visa, Employer Nomination Scheme and Regional Sponsored Migration Scheme.
  • Who is affected: Employers sponsoring foreign workers.
  • Business impact: Payment of the immigration skills fee is delayed until it passes Parliament.
  • Next steps: The House of Representatives convenes again on 26 February and the Senate on 19 March.

Background: The Skilling Australia Fund Bill 2018 would mandate that all employers sponsoring foreign workers pay into a fund to help upskill the resident labour force. The bill passed the House and moved to debate in the Senate. An amendment to the Labour Market Testing requirement was successfully added. That amendment would require that advertising start within four months of a nomination and run four weeks, state relevant skills and be targeted so that a significant proportion of Australians would be informed about the position. Another amendment would exempt companies with turnover of A$5 million or less from having to pay the new skills fee.

BAL Analysis: Employers should be aware that the skills fee is unlikely to pass before the TSS visa is introduced next month; however, Parliament will take up the debate again and the bill could pass as early as mid-March.

This alert has been provided by BAL Australia. For additional information, please contact australia@bal.com.

MARN: 0101248

Copyright © 2017 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

IMPACT – MEDIUM

What is the change? Government officials have provided the Migration Institute of Australia with updated information about the forthcoming Temporary Skills Shortage (TSS) visa programme.

What does the change mean? Officials confirmed that the TSS visa programme will be launched in the first half of March. They said that a requirement that applicants be ‘genuine temporary entrants’ will automatically be satisfied in most cases and that tests to determine whether sponsoring employers are discriminating against Australians will be the exception, not the norm. A number of details must still be finalised, including details related to the introduction of new labour market testing requirements, plans to expand the accredited sponsor scheme, streamline ‘lower risk’ applications and develop a Skilling Australians Fund.

  • Implementation timeframe: Ongoing. The TSS visa programme is set to be implemented in the first half of March, but no exact date has been provided yet.
  • Visas/permits affected: Temporary Skills Shortage (TSS) visas.
  • Who is affected: Employers planning on recruiting foreign workers on TSS visas.
  • Next steps: Additional information on the TSS visa programme is expected this month and in March. BAL will continue following developments and will alert clients to additional changes once they are announced.

Background: The Australian Government announced in April 2017 that it would abolish the Subclass 457 Temporary Skilled Work visa and replace it with the Temporary Skill Shortage (TSS) visa programme with an eye toward tighter controls over migration and the hiring of skilled foreign workers. In January, officials released some information aimed at helping employers begin to prepare for the change. The MIA met with Department of Home Affairs to seek additional information on the TSS visa programme. According to the MIA, Department officials said:

  • The TSS visa will be introduced in the first half of March. No exact implementation date has been provided yet, but it will not be 1 March.
  • The Genuine Temporary Entrant requirement will be automatically satisfied in most cases. This requirement will be met unless the applicant has held a number of short-term visas in the past four or five years. It is not clear whether this means the applicant has held a number of short-term employment visas or whether other visa subclasses may be considered as well.
  • Arrangements will be made for Subclass 457 visa holders. Subclass 457 visa holders transitioning to a TSS visa will be permitted to apply for a second TSS visa in Australia.
  • Non-discriminatory Workforce Tests are expected to be the exception rather than the norm. The Government previously said it would conduct non-discriminatory workforce tests to ensure employers are not discriminating against Australian workers. Few details about how these tests will work are available, but officials have now clarified that they will not be conducted for all TSS applicants. Tests can be expected in cases where a company’s workforce does not match the industry norm, for example, in situations where sponsored workers are far greater than the number of Australian workers.
  • Details of the Labour Market Testing requirement are still being debated. Labour Market Testing will be mandatory for TSS visa applications, but details on how positions must be advertised have not been finalised. Authorities have previously indicated that sponsors who want to ensure they meet the criteria once they are established should consider: (1) advertising positions for a reasonable period of time before seeking to fill positions with foreign workers; (2) ensuring that advertisements specifically mention the nominated position, including the terms and conditions that are eventually offered to a foreign worker; and (3) ensuring that advertisements can be accessed nationally.
  • Plans for a Skilling Australians Fund are not finalised. Employers will be required to pay into a training fund as part of the TSS programme. Parliament is still debating how the fund will be established, but officials have confirmed that they will switch to the TSS visa programme in March even if the Skilling Australians Fund is not ready to be implemented.
  • The processes for obtaining a health waiver will change. The Public Interest Criteria (PIC) 4006A health waiver, available to Subclass 457 applicants, will not be available to TSS visa applicants. A separate waiver, the PIC 4007 health waiver, however, will be available. Details are available here.

The Department also told MIA it was looking to expand the accredited sponsor scheme and that it would prioritise ‘lower risk’ TSS visa applicants. The details for both of these initiatives have not yet been finalised.

BAL Analysis: While some key parts of the TSS visa programme have not been finalised, employers are encouraged to familiarise themselves with the information that is available. BAL can assist employers in preparing for the switch to the TSS visa programme and in determining whether it is best to submit nominations and visa applications before or after the March implementation. BAL can also help employers plan for labour market testing, salary and other requirements, to the extent that they are known.

MARN: 0534021

This alert has been provided by BAL Australia. For additional information, please contact australia@bal.com.

Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

IMPACT – LOW

What is the change? Australia has signed Work and Holiday visa agreements with Austria and the Czech Republic.

What does the change mean? Under the agreements, Australian, Austrian and Czech nationals between the ages of 18 and 30 will be able to apply for Work and Holiday visas. The visas allow for Australian and partner country nationals (Austria and the Czech Republic) to travel, work and study in each other’s countries for short-term stays.

  • Implementation timeframe: The work and holiday arrangements will be implemented on 15 February 2018 for Austria and on 1 March 2018 for the Czech Republic.
  • Visas/permits affected: Work and Holiday (subclass 462) visas.
  • Who is affected: Australian, Austrian and Czech nationals who are at least 18 but less than 31 years of age.
  • Business impact: Employers may hire individuals on Work and Holiday visas for up to six months.

Background: Austria and the Czech Republic will join 22 other countries that have work and holiday visa arrangements with Australia, including Argentina, Bangladesh, Chile, China, Hungary, Indonesia, Israel, Luxembourg, Malaysia, Peru, Poland, Portugal, San Marino, Singapore, Slovak Republic, Slovenia, Spain, Thailand, Turkey, the United States, Uruguay and Vietnam. Australia’s current Work and Holiday program allows foreign nationals to visit for up to one year, during which time they may study for up to four months and work for up to six months for any one employer.

BAL Analysis: The Work and Holiday visas provide an opportunity for employers with global programs to employ Australian, Austrian and Czech nationals.

MARN: 0101248

This alert has been provided by BAL Australia. For additional information, please contact australia@bal.com.

Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

What is the change? The Australian Government has made slight changes to the lists of skilled occupations that can be filled by foreign nationals under skilled visa programmes.

What does the change mean? The changes will affect what occupations foreign nationals can be nominated into for skilled Australian visa programmes, and, in some cases, the validity period for which a temporary visa will be issued. Officials previously indicated that there would be no changes to the Medium and Long-term Strategic Skills List (MLTSSL), and while officials did indeed decide against moving any occupations off the MLTSSL to the Short-term Skilled Occupation List (STSOL), some occupations were moved from the STSOL to the MLTSSL. Others were struck altogether.

  • Implementation timeframe: The changes take effect 17 January.
  • Visas/permits affected: Temporary Work (Skilled) visas (Subclass 457), Training (Subclass 407) visas, Employer Nominated Scheme (Subclass 186) visas, and Regional Sponsored Migration Scheme (Subclass 187) visas.
  • Who is affected: Employers and foreign nationals applying for any of the visas listed above.
  • Business impact: Sponsors should review the revised MLTSSL and STSOL to determine whether they will have to make any adjustments to their international recruiting and staffing programmes.

Background: The changes announced this week were minor compared to the overhaul of the occupations lists in April of 2017 and the additional changes that took effect 1 July. Overall, only three occupations were added to the STSOL. Two were moved from the STSOL to the MTLSSL. Two were removed altogether.

Change Occupation ANZSCO code
Added to the STSOL Property Manager* 612112
Psychotherapist 272314
Real Estate Representative* 612115
Moved from STSOL to MTLSSL Horse Breeder* 121316
Management Consultant* 224711
Moved from MTLSSL to STSOL None
Removed from Occupations Lists Building Associate 312112
Hair or Beauty Salon Manager 142114

*Caveats apply. See the Department of Home Affairs summary of the 17 January changes to the lists of eligible skilled occupations.

For some occupations, officials added new caveats, which often restrict recruitment of foreign workers on the basis of the worker’s salary, the company’s annual financial turn over or other factors. Occupations to which new caveats will apply include Accommodation and Hospitality Managers, Management Accountants, Massage Therapists, Recruitment Consultants, Management Consultants, Supply and Distribution Managers and Taxation Accountants. Additional information on the caveat changes is available here.

BAL Analysis: Officials said recently that they “prioritised continuity” when developing the new occupation lists. And while some changes were made, they are relatively small compared to the more significant changes in April and July. With the exception of the changes listed above, employers can continue using the MLTSSL and STSOL as they have for the past six months.

This alert has been provided by BAL Australia. For additional information, please contact australia@bal.com.

MARN: 0534021

Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

IMPACT – MEDIUM

The Australian Government continues to provide updates on skilled visa programmes and other immigration initiatives. Recently announced changes will affect the visa application process for same-sex partners, the processing of incomplete Subclass 457 applications and will help employers prepare for a major visa overhaul in March.

Among key developments:

  • The Department of Home Affairs has changed visa processes for applicants in same-sex marriages. Applicants in same-sex marriages can now apply for visas as their partner’s “spouse” rather than “de facto partner.” This move followed a vote in Parliament to recognise same-sex marriage in Australia. The change applies to Partner visas (subclasses 100, 309, 801 and 820) and any other visa in which spouses can be listed in an application. Applicants in same-sex relationships can also apply for a Prospective Marriage visa (subclass 300) if they genuinely intend to marry their partner while in Australia.
  • The Department has changed how it will handle incomplete Subclass 457 applications. From 15 January, the Department will refuse applications that are incomplete because of a lack of supporting evidence provided (1) no “natural justice obligations apply” and (2) more than two days have passed since the application was lodged. Officials said this rule would not be applied in certain cases, including cases where health and character documentation is still pending, where a related application that must be finalised is still pending, or where a reasonable explanation is provided for the missing documentation.
  • New occupation lists will take effect. Australia has committed to updating its occupation lists for temporary and permanent skilled visas every six months. New lists are due to come into effect 17 January, but there will likely be little (if any) change. As BAL reported earlier this week, officials recently said they will not make changes to the Medium and Long-term Strategic Skills List (MLTSSL) at this time, saying they have “prioritised continuity” after the list was significantly altered in April and July of 2017. It is not yet clear whether any changes will be made to the Short-term Skilled Occupation List (STSOL), but if changes are made they will likely be relatively minor.
  • The Department is preparing to launch the Temporary Skill Shortage (TSS) visa programme. The programme will replace the Subclass 457 visa progamme in March. While many details have yet to be finalised, officials recently provided updates on plans for streamlined processing measures, transitional arrangements, labour market testing and salary requirements. Read BAL’s full news alert on this topic here.
  • Officials have issued a reminder about important changes to permanent employer-sponsored skilled categories. These changes will also take effect in March, but transitional provisions will apply to certain subclass 457 employees applying for permanent residence after March. Read BAL’s full news alert on this topic here.

BAL Analysis: Australia’s immigration policies continue to change at a rapid pace. BAL continues to work with clients and to lobby Government officials, aiming to ensure that client interests are represented as immigration rules change. Those with questions or concerns about how any of the recent changes will affect their company or their employees should not hesitate to contact BAL.

This alert has been provided by BAL Australia. For additional information, please contact australia@bal.com.

MARN: 0101248

Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

IMPACT – HIGH

What is the change? The Australian Government has provided new information about the forthcoming Temporary Skill Shortage (TSS) visa programme, which will replace the Subclass 457 visa programme in March.

What does the change mean? Among key information made available through the Government’s Skilled Visa newsletter are additional details on visa validity period, streamlined processing measures, transitional arrangements, labour market testing and salary requirements. Many details are not yet finalised, but the information that is available should help employers begin to plan for the switch to the new visa programme in March.

  • Implementation timeframe: Between now and March 2018.
  • Visas/permits affected: Temporary Skill Shortage (TSS) visas.
  • Who is affected: Employers planning on recruiting foreign workers on TSS visas.
  • Next steps: Additional information on the TSS visa programme will continue to come out in February and March. BAL will continue following developments and will alert clients to additional changes once they are announced.

Key information: The Australian Government announced in April 2017 that it would abolish the Subclass 457 Temporary Skilled Work visa and replace it with the Temporary Skill Shortage (TSS) visa programme with an eye toward tighter controls over migration and the hiring of skilled foreign workers. This week, officials released some information that should help employers begin to prepare for the switch. Some key points, as highlighted in the Government’s Skilled Visa newsletter for January, are as follows:

  • The TSS visa programme will, as expected, be launched in March. The TSS visa programme will include separate streams for short-term work, medium-term work and work completed pursuant to labour agreements in Australia. When TSS nomination applications are lodged, employers will be required to select an employment period of one or two years for the short-term stream and one, two, three or four years for the medium-term or labour agreement stream.
  • The TSS visa programme will include streamlining initiatives. These initiatives include:
    • A standard five-year sponsorship agreement period, including for start-up companies.
    • Auto-approval of low-risk nomination applications that are submitted by accredited sponsors.
    • A quicker renewal process for existing sponsors, including a shorter application form and, potentially, auto approval of some sponsorship renewal applications.
    • New online forms for the TSS visa programme and a review aimed at ensuring that TSS correspondence templates are easy to use and understand.
  • Transitional arrangements will be put in place. These arrangements are still being finalised, but it is anticipated that:
    • If Subclass 457 nominations and visa applications are both lodged before the TSS programme is implemented, they will be adjudicated against current criteria (i.e., Subclass 457 criteria).
    • If, at the time of the switch, a Subclass 457 nomination is lodged but the associated visa application is not, the nomination will not be considered and will have to be resubmitted under new guidelines.
    • Secondary visa applicants will be permitted to lodge dependent TSS applications if the primary visa holder has a current or pending Subclass 457 visa. The validity period of the dependent TSS visa will be linked to the expiry date of the primary visa.
    • Subclass 457 visa holders with valid visas will be able to change employers after the transition to TSS, provided the new employer lodges a TSS nomination application.
    • Subclass 457 visa holders who want to change occupations, however, will be required to have their employers lodge a TSS nomination application and will be required to submit a new visa application.
  • Labour market testing requirements will become more stringent. As BAL reported in October, Labour Market Testing will be mandatory for TSS visa applications. Exact requirements have not been determined, but authorities previously indicated that sponsors who want to ensure they meet the criteria once they are established should consider: (1) advertising positions for a reasonable period of time before seeking to fill positions with foreign workers; (2) ensuring that advertisements specifically mention the nominated position, including the terms and conditions that are eventually offered to a foreign worker; and (3) ensuring that advertisements can be accessed nationally. Additional details are expected in February.
  • Employers will have to meet salary requirements. Current arrangements require sponsors that employ foreign workers at an annual salary of less than A$250,000 to establish that they are paying a market rate salary. Changes are planned to (1) clarify the meaning of key terms such as “base rate of pay” and “guaranteed annual earnings”; (2) ensure that salary requirements more properly reflect pay disparities from industry to industry; (3) take steps to ensure that foreign workers understand salary requirements so that it will be harder for unscrupulous employees to take advantage of them; (4) make clear to sponsors that they must comply with all applicable labour laws, as well as immigration rules. Additional details are expected in February.

BAL Analysis: Employers are encouraged to familiarise themselves with the information that is available about the forthcoming TSS visa programme. The streamlining measures will help ease visa processing for some sponsors and are a reminder of the benefits of becoming an accredited sponsor. BAL can assist employers, meanwhile, in determining whether it is best to submit nominations and visa applications before or after the switch. BAL can also help employers plan for labour market testing and salary requirements.

This alert has been provided by BAL Australia. For additional information, please contact australia@bal.com.

MARN: 0101248

Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

IMPACT – HIGH

What is the change? Employers are reminded that important changes to permanent employer-sponsored skilled categories take effect in early March when the subclass 457 visa programme is terminated and replaced with the Temporary Skills Shortage visa. Transitional provisions will apply to certain subclass 457 employees applying for permanent residence after March.

What does the change mean? Foreign workers sponsored under the Employer Nomination Scheme and the Regional Sponsored Migration Scheme will be subject to stricter criteria as detailed below. However, employees who held, or applied for, a 457 visa on 18 April are eligible to be considered for permanent residency under transitional provisions that use the old criteria for occupation, age requirements, and minimum tenure.

  • Implementation timeframe: Early March 2018.
  • Visas/permits affected: Employer Nomination Scheme (ENS) visa (subclass186) and the Regional Sponsored Migration Scheme (RSMS) visa (subclass 187). The transition provisions apply to the Temporary Residence Transition stream only, not the Direct Entry stream or the Agreement stream.
  • Who is affected: Companies sponsoring foreign workers under the ENS or RSMS programmes; foreign workers holding 457 visas who may be eligible to apply for permanent residency under the transitional provisions.
  • Business impact: The tighter requirements, such as occupation, age, salary and work experience, may limit the skilled employees that companies are able to sponsor for permanent residency. Businesses will also need to budget for the new skills levy that will fund programmes to train Australian workers.
  • Next steps: The transitional provisions remain subject to final approval by immigration authorities. Employers should prepare for the upcoming changes to the ENS and RSMS programmes and identify 457 visa holders who may be eligible to be grandfathered in under old criteria for permanent residence.

Background: Below are the new criteria for ENS and RSMS schemes and a chart indicating who is eligible for certain transitional “grandfathering” provisions.

  • Occupation lists. The nominee’s job must be on the Medium and Long-term Strategic Skills List (MLTSSL) unless the employer is in a regional area (for which more occupations will be available).
  • Minimum Salaries. Employers must pay the nominee the Australian market salary rate and meet the Temporary Skilled Migration Income Threshold (A$53900 as of 12 April 2016).
  • Residency period. Workers under the Temporary Residence Transition stream will become eligible for permanent residency after three years (instead of the current two years).
  • Work experience. The employee must demonstrate at least three years of work experience relevant to the particular occupation.
  • Age limit. All applicants must be below the maximum age of 45 at the time of application (instead of the current maximum age of 50).
  • Training levy. Employers must pay a contribution to the Skilling Australians Fund. The fee will be A$3000 for companies with annual turnover of less than A$10 million or A$5000 for all others, and must be paid in full at the time of nomination.

Eligibility for transitional provisions:

Nominee Eligible for Transitional Provisions?
Employee held a subclass 457 visa on 18 April  2017 and continues to hold this visa or a TSS visa or related bridging visa at the time of application for ENS or RSMS;

or

Employee lodged a subclass 457 visa application on or before 18 April 2017 and was subsequently granted this visa, and continues to hold this visa or a TSS visa or related bridging visa at time of application for ENS or RSMS.

Yes. New criteria will apply, except for the following:

  • Old occupation list requirements apply.
  • The maximum age of 50 will apply.
  • The minimum tenure of two years’ employment in the nominated occupation as a 457 or TSS visa will apply.
All other applicants No. All new criteria apply.

BAL Analysis: Employers should prepare for the changes as they consider sponsoring employees for permanent residence under the ENS and RSMS routes. Companies are also encouraged to work with their BAL professional to preserve the grandfather rights of employees who qualify under the transitional provisions. Immigration authorities also confirmed that the new ENS and RSMS criteria will not be applied to pending applications.

This alert has been provided by BAL Australia. For additional information, please contact australia@bal.com.

MARN: 0101248

Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

IMPACT – MEDIUM

What is the change? The Australian Government has announced it will not make additional changes to the Medium and Long-term Strategic Skills List (MLTSSL) at this time, saying that it has “prioritised continuity” after the list was significantly altered in April and July of 2017.

What does the change mean? Employers should continue to use the current MLTSSL, as amended in July, when determining what occupations can be filled by foreign nationals under the Temporary Work (Skilled) (Subclass 457) visa, the Training (Subclass 407) visa, the Employer Nomination Scheme (Subclass 186) visa or the Regional Sponsored Migration Scheme (Subclass 187) visa programmes.

  • Implementation timeframe: Ongoing.
  • Visas/permits affected: Temporary Work (Skilled) visas (Subclass 457), Training (Subclass 407) visas, Employer Nominated Scheme (Subclass 186) visas, and Regional Sponsored Migration Scheme (Subclass 187) visas.
  • Who is affected: Employers and foreign nationals applying for any of the visas listed above.
  • Business impact: Sponsors can continue using the MLTSSL as they have for the last six months.

Background: The MLTSSL and STSOL replaced the Skilled Occupation and Consolidated Sponsored Occupation lists in April, when 216 occupations were removed from the set of occupations eligible to be filled by foreign nationals under certain skilled visa programmes. In July, more than 30 occupations were added to the lists. Others moved between the two lists, and 12 were removed altogether. Officials indicated at the time that the occupation lists would be regularly reviewed, with a view to supporting the changing needs of Australian industry and Australian workers. In November, The Department published a traffic light bulletin indicating that no changes would be made to the MLTSSL. The Department also proposed removing four occupations from the STSOL and adding five new occupations to the list. Officials have since confirmed there will be no changes made to the MLTSSL. BAL is working to confirm whether any changes will be made to the STSOL.

BAL Analysis: The decision not to make additional changes to the MLTSSL will allow companies to continue using the MLTSSL as they have for the past six months. BAL will alert clients to any changes to the STSOL should they be announced.

This alert has been provided by BAL Australia. For additional information, please contact australia@bal.com.

MARN: 0534021

Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

IMPACT – LOW

What is the change? The Australian Government has established a new agency, the Department of Home Affairs, which will oversee a number of functions including immigration, borders, security, criminal justice, emergency management and cultural affairs.

What does the change mean? The Department of Immigration and Border Protection will be among the agencies incorporated under the Department of Home Affairs. References to previous functions will be updated in the first half of 2018.

  • Implementation timeframe: Immediate. The Department of Home Affairs was officially established Dec. 20.
  • Visas/permits affected: All immigration services.
  • Who is affected: Companies and individuals applying for immigration services with Australian authorities.
  • Business impact: The change to the agency is primarily structural and is not expected to impact immigration procedures.

Background: The establishment of the Department of Home Affairs is part of reforms to the country’s national security and intelligence that were announced on July 18.

BAL Analysis: The new central agency will allow various departments to better integrate with each other, share information and provide coordinated strategy and policies.

This alert has been provided by BAL Australia. For additional information, please contact australia@bal.com

MARN: 0101248

Copyright © 2017 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

IMPACT – MEDIUM

The Government has announced that it will extend to three years the period during which newly arrived migrants will be barred from accessing certain welfare benefits. The Government will also increase to three years the period during which applicants for family visas must have an assurance of financial support.

Key points:

  • From 1 July 2018, newly arrived migrants will have to wait three years (up from two) before becoming eligible for family tax benefits, paid parental leave and carers allowances for those providing care to family members who have a disability, seriousness illness or are aged.
  • From 1 July 2018, applicants for family visas will have to demonstrate that they have access to financial support for at least three years after arriving in Australia. The current requirement is two years.
  • Exemptions will be made for vulnerable groups. New Zealand nationals who hold Special Category Visas and have dependent children will be exempt for the waiting period for family tax benefits and paid parental leave. The Government will also provide a short-term exemption for newly arrived migrants who would have otherwise been eligible for paid parental leave benefits between 1 July 2018 and 31 December 2018.

Background: The changes were announced in the Government’s Mid-Year Economic and Fiscal Outlook, which was released earlier this month. The Government estimates it will save A$1.4 billion by extending the waiting period for welfare benefits from two to three years.

BAL Analysis: Extending the waiting period before migrants can access welfare benefits is expected to save money, but could be a deterrent for those considering relocating to Australia. The new financial assurance requirement, meanwhile, will make applying for family visas slightly more difficult.

This alert has been provided by BAL Australia. For additional information, please contact australia@bal.com

MARN: 0534021

Copyright © 2017 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.