Opposition groups say changes to the 457 program could mean fewer jobs for Australians, but business welcomes the proposals

This article is more than 6 years old

This article is more than 6 years old

The Abbott government plans to pare back “unnecessarily restrictive” elements of the skilled foreign worker visa scheme, including rigid English language proficiency rules.



Labor, the Greens and unions raised concern the government was contemplating making life even harder for Australian job seekers at a time of rising unemployment, but major business groups welcomed the “balanced” proposals.

The immigration minister, Scott Morrison, expressed his support for some of the recommendations outlined in a government-commissioned report on the 457 visa program.

But he played down the prospect of moving quickly to abolish labour market testing, suggesting that other, less controversial recommendations were more likely to secure Senate support.

Labour market testing – legislated by the former Gillard government – requires prospective employers of people under the 457 visa program to demonstrate their efforts to “test” the local labour market to ensure Australians had the first opportunity to seek job opportunities.

A report published on Wednesday said employer-conducted labour market testing should be abolished as it was not fully reliable and had “proven ineffective” in the Australian context.

Morrison said the labour market testing regime put in place by the former government was onerous and part of an “attempt to suffocate the program with regulation at the urging of the unions”. But he said he was “a realist” and there were many other recommendations that he could pursue in an uncontroversial way.

The review’s 22 recommendations included changes to English language requirements for 457 visa applicants.

Instead of requiring visa applicants to achieve a score of at least five in each of the four tests – listening, reading, writing and speaking – the requirement should shift to an average of at least five, the report said.

It also called for greater flexibility to industries or businesses to seek concessions to the language requirement on a case by case basis.

Morrison signalled his support for changes in this area.

“The English language requirements are unnecessarily restrictive, serving more as an industrial lock-out rather than an honest attempt to ensure appropriate language skills which the government does believe is important,” he said in an address to the National Press Club in Canberra.

“There are more practical ways to achieve what is needed here and moving to an averaging system would remove much unnecessary cost and complexity.”

Morrison also backed a recommendation to make changes on market salary rate rules.

These rules aim to ensure 457 visa holders have the same salary and employment conditions as Australians undertaking similar work, but employers are exempted from demonstrating market rates for positions with salaries above $250,000 per year.

The report said the market rate should continue to be a core component of the 457 program but the earnings threshold for the exemption should be reduced back to the level that applied before last year.

Morrison said: “I support the continuation of the market rate framework, but will, in line with the recommendations of the review, look favourably on introducing a deregulation measure that brings the income bar for exemption from market rate assessment in line with the top marginal tax rate of $180,000.

“I am also attracted to the proposals that support trusted legitimate sponsors and help them manage their compliance and reporting obligations more effectively, whilst making it more difficult for those with dishonest intent to make fraudulent application.

“I agree that there is a need to simplify the process of sponsorship renewal, extend reporting time frames and bring forward legislation to make it unlawful for sponsors to be paid by visa applicants for a migration outcome, reinforced by a robust penalty and conviction framework.”

The opposition leader, Bill Shorten, said unemployment was now at a 12-year high in Australia and similar to the US rate.

“I think the government needs to carefully consider whether or not it wants to make it easier to bring in 457 visa holders at a time when Australians can’t find jobs,” Shorten said.

Labor’s immigration spokesman, Richard Marles, said the “extremely alarming” plans to reduce English language requirements could harm workplace safety and leave overseas workers “at risk of being exploited by dodgy employers”.

The deputy leader of the Greens, Adam Bandt, said his party would “strongly fight any move to remove the need to advertise locally”.

“If employers don’t even have to look for workers locally first, the 457 visa program will turn back into a pool of cheap labour from overseas, benefitting some employers at the expense of workers and the long-term skills base of the country,” Bandt said.

The president of the Australian Council of Trade Unions, Ged Kearney, said the abolition of labour market testing would be “ludicrous”.

“Unemployment is at a 12-year high, yet instead of creating a plan for jobs and investing in skills and training … the answer from the government and big business is to make it easier for employers to bring in foreign workers,” she said.

The resource industry employer group AMMA said it supported “more practical and effective” standards for English language testing and a reduction in market salary rate comparisons.

“Clearly employers should not be burdened with onerous salary comparison requirements for high-income earners being paid more than $180,000 per year,” said the AMMA chief executive, Steve Knott.

The Australian Chamber of Commerce and Industry argued labour market testing was “red tape” because “many employers already know the strengths and weaknesses of their local labour market beforehand”.

The report was produced by a four-member panel headed up by the former public servant John Azarias.

The assistant immigration minister, Michaelia Cash, who commissioned the review, said the panel had consulted 150 organisations from various stakeholder groups including employers, unions and individuals.

“Notably the independent panel found no evidence to back the claims made by the previous Labor government of widespread rorting of the program,” Cash said on Wednesday. “The government will announce a detailed response to the report shortly.”