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New 2014 Figures On The 457 Visa
The DIBP (Australian Government) released some interesting figures in June 2014 regarding the 457 visa that has led to some close media attention.
1) 66% of 457 visa applications that were granted were not for jobs that had to be advertised
From 2013 the previous labour government introduced legislation that determined that for certain job categories employers would have to advertise the position to Australian’s first before offering it to a potential 457 visa applicant. This is termed “labour means testing”. It’s critical here to looks closely at this statement. It does not mean that only 34% of these jobs were advertised to Australian’s but rather they didn’t need to be advertised to Australian permanent residents first. If this figure we released it’s expected to be a low higher.
2) 5% of working holiday visa holders become 457 visa holders
1 in 20 working holiday visa holders (often young tourists visiting Australia) extend their stay in Australia through a 457 visa. This means that during their initial visa period they apply and are awarded a role that can be filled by a 457 visa applicant. This figure has been in the spotlight as many consider working holiday visa holders as “backpackers” and therefore the roles they take are generally considered lower skilled. While this may be true, employer groups highlight that many of these roles are those that local residents won’t take such as fruit picking in the country. The 457 visa program is critical for such positions or companies would lose productivity.
Overall Commentary
The two key figures above gained widespread media attention because at face value it appears that the scheme is been misused by employers to fill positions with cheap labour. This is simply not the case because on average 457 visa holder earn more then the industry average. This means that these employers are often higher skilled and more senior then their counterparts.
Another misconception is that the 457 visa scheme is easy to get and inexpensive. The previous Gillard Government increased application fees by over 200% and it now costs over $1,000 just to apply for this visa. Add additional employer costs, waiting periods and then compulsory elements such as 457 visa health insurance. These factors as well as minimum pay requirements for a 457 visa holder often means its more expensive and difficult to hire a 457 visa holder then a local employee. Employers therefore would in most cases only hire a 457 visa holder when their is a genuine skill shortage in the industry and it’s difficult to source a local candidate.
Rather then look at these top line figures, the government and the Australian media should be looking at the overall trend when it comes to all migration schemes. Over the past 12 months more immigrants are coming on student and holiday visas overall. This is quite the opposite for skilled visa’s including the 457 visa and 485 visa which have seen the highest application increases and the requirements for 457 visa health insurance and 485 visa health insurance. If Australia is really focused on becoming the cleaver country then it would be the skilled visas that should be on the incline rather then the lower-skilled temporary visas. The government should be looking to address this decline rather then playing polities based on media and union reports of some top-line figures without showing the overall benefits and trends of the 457 visa program.
