457 Visa Applications Decrease By 36% In 2014

Official government figures released by the newly names Department Of Migration and Boarder Patrol show that that applications remained flat in the 2014/15 financial year.
The total number of applications lodged in January to March 2014 was just over 35,000 lower then the previous corresponding period in 2013 which is 36.3% lower.

Onshore applications were lower year on year whereas offshore applications were up which is the reversal of the trend seen over the past 2 years.

In line with applications lodged, the number of 457 visa granted in 2014 is also lower but by a slightly smaller 23.2%. This may indicate that a higher proportion of applications lodged are now approved by Department of Immigration and Border Protection with applicants making sure they meet the selection criteria.

Below shows that the total number of 457 visa holders is at an all time high of 111,780 but this is expected to start dropping as the number of 457 visa granted remains flat.

Why are applications so much lower in 2014

2013 was an election year in Australia with migration one of the key potential battlegrounds between the two major Australian parties Labour and Liberals. The party in power at the time (Labour) felt pressure from unions and sections of the media for the increasing unemployment rate and a fear that 457 visa holders were taking jobs that permanent residents should hold. This led to a number of visa adjustments which were enforced in July 2013 including dramatically higher fees for applications and tighter rules over what individuals can apply for the visa and what jobs employers could advertise in November 2013 (including stricter requirements on advertising the position first).

The result of the changes were dramatic with a huge spike in applications in June 2013 (to avoid the dramatically higher fees) followed by a dramatic drop the following month. As the first graph above highlights this drop in applications has continued highlighting that the changes have hampered the 457 visa applications numbers.

Is the new Liberal government worried about the drop in 457 visa applications?

Like in 2013 migration still remains a political issue. While the new Liberal government has a tough stance on illegal migration, it has a softer stance on skilled migration and is viewed by many as closer to business than labour who have an association with the countries unions. The government is currently reviewing the 457 visa program and is going to table its recommendations on June 30, 2014. While unions (who don’t have a close tie to the current government) are due to table requests to tighten the program more that instead more pro-business policies will be enforced to reverse the current application trend to a more sustainable level.

The key are the government is expected to look at is the cost of moving to Australia through the subclass 457 visa including:

• Application fees
• Health insurance for the 457 visa
• Establishment fees

There is no doubt, any changes are due to make some parties happy over others so it should be interesting to view the recommendations released at the end of this financial year.

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