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IMPACT – LOW
What is the change? A designated area migration agreement (DAMA) has gone into effect for the Northern Territory.
What does the change mean? The agreement offers qualifying employers in the Northern Territory concessions on minimum income thresholds and English language requirements for subclass 457 visas in a limited number of occupations.
Background: Australia announced the DAMA pilot programs last month.
Under the Northern Territory DAMA, there will be concessions in English language and minimum salary requirements for subclass 457 visas. The agreement also adds some occupations to the normal subclass 457 occupations list.
* These occupations are classified as “vulnerable” occupations and therefore English language concessions will not apply.
The first stage of DAMA has now commenced and will proceed until 10 February 2015 or until DIBP’s standard DAMA guidelines (DAMA Stage 2) are finalised. Employers must obtain endorsement from the Department of Business and if they need to add occupations or employees after endorsement, they must go back to the Department of Business. The Northern Territory Government is negotiating for a broader range of occupations to be available in DAMA Stage 2.
BAL Analysis: This DAMA is a good scheme for a limited number of employers operating in the Northern Territory. Employers who qualify must still fulfill labour market testing and demonstrate that they are unable to fill the job locally and that the terms of employment match those offered to Australian workers employed in the region.
This alert has been provided by BAL Australia. For additional information, please contact australia@bal.com.
MARN: 9683856
Copyright © 2016 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 New South Wales (NSW) Government has announced a change that significantly eases investment restrictions of Significant Investor Visa (SIV) nominees.
What does the change mean? New applicants will no longer have to meet minimum holdings in NSW Waratah bonds.
Background: Beginning 1 Sept., the NSW Government will eliminate the requirement that Significant Investor Visa applicants hold a certain amount of their money in NSW Waratah bonds. Applicants may now invest all of their $5 million investment in complying investments of their choice.
Significant Investor Visa applicants must invest AUD$5 million in complying investments for at least four years before they are eligible to apply for a permanent visa.
The new policy will apply to applicants nominated from 1 Sept. Those nominated for SIVs before 1 Sept. are bound by the current rules that require applicants to invest 30 per cent, or AUD$1.5 million, in NSW Waratah bonds.
The NSW Government’s Deputy Premier and Minister for Trade and Investment Andrew Stoner announced the change on 27 Aug.
BAL Analysis: The removing of investment restrictions will make the Significant Investment Visa more attractive and flexible to high-value foreign investors.
This alert has been provided by BAL Australia. For additional information, please contact australia@bal.com
What is the change? Australia and Poland have begun a new reciprocal Work and Holiday Visa program for young people.
What does the change mean? Up to 200 individuals between the ages of 18 and 30 in each country may apply for these visas, which will allow them to travel and study in each other’s countries for short stays.
Background: Poland is the 11th country to have a reciprocal work and holiday visa arrangement with Australia, joining Argentina, Bangladesh, Chile, Indonesia, Malaysia, Papua New Guinea, Thailand, Turkey, the U.S. and Uruguay.
Australia’s 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 an employer.
BAL Analysis: The Work and Holiday Visas provide an opportunity for employers with global training programs to employ Polish and Australian nationals.
MARN 9683856
What is the change? The Fair Work Ombudsman has begun reviewing industries suspected of exploiting the work provisions of the Working Holiday (subclass 417) Visa.
What does the change mean? Underpayment and nonpayment to 417 Visa holders could result in fines.
Background: The 417 Visa is for foreign nationals between the ages of 18 and 31 who want to holiday and work in Australia for up to two years. The initial visa is for one year and in order to qualify for the second year, the foreigner must work at least 88 days during their first year, performing specified work in certain designated areas and industries.
The Ombudsman has reported receiving complaints from one out of three 417 Visa holders. Of the 128 000 Working Holiday visas issued during the first half of the 2013-14 financial year, 20 per cent were for second-year visas – a large jump compared to the same period last year. More than 50 cases have been filed since 2009, and the largest penalty levied against a company has been $343 860.
BAL Analysis: The review signals greater scrutiny of companies employing 417 Visa holders and is a compliance reminder to employers.
What is the change? Australia will launch a pilot foreign-worker program under a designated area migration agreement (DAMA) with the Northern Territory Government.
What does the change mean? The agreement provides for relaxed criteria for semi-skilled overseas workers where there are local labour shortages.
Background: Australia’s Assistant Immigration Minister Michaelia Cash recently confirmed that a pilot DAMA program will launch in Darwin in the Northern Territory in coming weeks and discussions are in progress for a similar DAMA in Pilbara in Western Australia. The agreements are aimed at attracting semi-skilled guest workers such as childcare workers, cooks and truck drivers. Labor unions have criticised the plans as undercutting local workers by watering down training and skills requirements for 457 visas.
BAL Analysis: It is still unclear which criteria – particularly labour marketing testing – will be altered or eased under the DAMAs.
What is the change? A report recommending numerous changes to the subclass 457 visa system will be released shortly, according to an announcement by Assistant Minister for Immigration and Border Protection Michaelia Cash.
What does the change mean? The report, titled “Robust New Foundations,” makes 27 recommendations to make the 457 visa program more streamlined, transparent and responsive.
Background: Cash announced the report in opening remarks to the Migration Institute of Australia’s Western Australia State Conference in Perth on 8 August. The annual conference is a gathering of Australian registered migration advisors and overseas immigration and migration professionals.
Cash also confirmed that the Temporary Skilled Migration Income Threshold (TSMIT) will not be indexed this year.
BAL Analysis: BAL will provide details as soon as the report containing 457 visa recommendations is released to the public. Meanwhile, businesses can budget knowing that the income thresholds will not increase this year.
What is the change? Australia is expanding its automatic border processing program to Singaporean nationals.
What does the change mean? Singaporean ePassport holders can now receive faster processing at Australian airports.
Background: After a trial period that began in February, Australia has announced that it will make SmartGate available to Singaporean nationals on a permanent basis.
SmartGate is a self-service processing option for eligible travellers who are entering Australia. Rather than having to queue to see a border control officer, SmartGate travellers can self-process through passport controls. Australia recently added SmartGate capability at Brisbane Airport, doubling the number of kiosks and gates for that purpose in the past year.
SmartGate is also available to Australian, New Zealand, U.S. and U.K. citizens on a permanent basis and to Swiss electronic passport holders under trial arrangements.
BAL Analysis: The expansion of the SmartGate service to more nationalities reduces queues for all travellers.
IMPACT – HIGH
What is the change? In response to a Senate vote Wednesday night that blocked several visa categories for foreign oil and gas industry workers, Australia’s Immigration Minister issued a Legislative Instrument on Thursday to override the vote.
What does the change mean? The Legislative Instrument clarifies the visa status of foreign workers in offshore resources activities.
Background: On Wednesday night, the Australian Senate voted to disallow a regulation that put foreign workers into three visa categories. That regulation, Migration Amendment (Offshore Resources Activity) Regulation 2014, was intended to quash a more restrictive law put in place by the previous government that would have required a new “offshore resources” visa for those workers. Both measures had effective dates of 30 June.
Following the disallowance vote, Assistant Minister for Immigration and Border Protection Michaelia Cash quickly issued Legislative Instrument IMMI 14/077 – Determination Subsection A(6) Migration Act 1958 to override the vote.
In a statement, she said the Legislative Instrument has the following effects:
“The Legislative Instrument effectively restores the situation that existed prior to 29 June 2014 – which was in place for the entire duration of the former Labor Governments,” Cash said.
The Legislative Instrument is to take effect immediately and sunsets on 1 October 2024. The instrument states that it is exempt from disallowance and that due to its urgency, it does not require consultation.
BAL Analysis: The new law restores short-term certainty for the immigration status of foreign workers in Australia’s $200 billion oil and gas industry.
What is the change? A vote in the Australian Senate has struck down several temporary visa categories for foreign workers in the oil and gas sector.
What does the change mean? The vote blocks a regulation issued by the Australian Government to classify foreign oil workers into three visa categories.
Background: The controversy dates back to a Labor Government law to create a new “offshore resources” visa category for foreign offshore oil workers, essentially tightening regulations on those workers to protect Australian jobs. When Tony Abbott’s Coalition Government took office, it tried to override that law by implementing a regulation that instead classified foreign oil workers into three existing visa categories.
The Senate vote on Wednesday night blocked that regulation. Assistant Immigration Minister Michaelia Cash was quoted in The Australian as saying that the effect of the vote was to put any “person who was not an Australian citizen or permanent resident…in breach of their temporary visa conditions if they participated in or supported an offshore resource activity.”
BAL Analysis: It is not yet clear how this development will impact the visa status of foreign workers in the offshore oil and gas industry.
What is the change? Australia will raise employers’ superannuation rate, or compulsory contribution to employees’ retirement accounts, beginning 1 July.
What does the change mean? Companies should be planning now for the immediate increase to 9.5 per cent as well as for scheduled increases that will reach 12 per cent over the next five years.
Background: Australia has planned a series of increases to employers’ superannuation contribution rate that will reach 12 per cent by 2020. The current rate of 9.25 per cent will increase to 9.5 per cent on 1 July. Employers of foreign nationals may opt to lower workers’ salaries to compensate for the higher contribution rates, but any adjusted salaries must meet market-rate requirements and be reported to the Department of Immigration and Border Protection. A new subclass 457 nomination application may be required if salaries drop below the guaranteed annual earnings stipulated in the nomination application that was approved for a primary subclass 457 visa holder’s current role within the business.
BAL Analysis: Employers should review employee salaries in consideration of the coming rate hikes.