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Business News/ News / World/  Australia scraps 457 visa used largely by Indians in ‘Australians First’ move

Australia scraps 457 visa used largely by Indians in ‘Australians First’ move

PM Michael Turnbull says Australia will replace the 457 visa with new work visa that will require foreign workers to have better English language and job skills

Australian PM Michael Turnbull says the new visa rules would attract better skilled workers and see locals employed over cheap foreign workers brought in under the old 457 visa programme. Photo: APPremium
Australian PM Michael Turnbull says the new visa rules would attract better skilled workers and see locals employed over cheap foreign workers brought in under the old 457 visa programme. Photo: AP

Melbourne/New Delhi: Australia will abolish a popular work visa used by over 95,000 foreign workers, a majority of them Indians, to tackle the growing unemployment in the country and replace it with a new programme requiring higher English-language proficiency and job skills.

The programme known as 457 visa allows businesses to employ foreign workers for a period of up to four years in skilled jobs where there is a shortage of Australian workers. “We are an immigration nation, but the fact remains: Australian workers must have priority for Australian jobs, so we are abolishing the 457 visa, the visa that brings temporary foreign workers into our country," said Prime Minister Malcolm Turnbull. The majority of the visa holders under this category were from India, accounting for almost a quarter of the intake, followed by the UK and China at 19.5% and 5.8 % respectively, ABC reported.

“We will no longer allow 457 visa to be passports to jobs that could and should go to Australians," he said. He said Australia will adopt a new “Australians First" approach to skilled migration.

As of 30 September, there were 95,757 workers in Australia on primary 457 visas and 76,430 secondary visa holders (members of their family), the report said. The programme will be replaced by another visa programme, with new restrictions.

“It is important businesses still get access to the skills they need to grow and invest, so the 457 visa will be replaced by a new temporary visa, specifically designed to recruit the best and brightest in the national interest," Turnbull said. Turnbull said the new programme will ensure that foreign workers are brought into Australia in order to fill critical skill gaps and not brought in because an employer finds it easier to recruit a foreign worker.

In New Delhi. responding to a query regarding the new Australian visa policy, Indian foreign ministry spokesman Gopal Baglay said that “the government is examining consequences of the new policy in consultation with all stakeholders. This is also a matter we will be looking at in the context of CECA (Comprehensive Economic Cooperation Agreement) negotiations."

The new visa will include mandatory criminal checks and tighter English language requirements. The new “Temporary Skill Shortage Visa" programme will comprise two streams—Short Term and Medium Term—and will be underpinned by more focused occupation lists that are responsive to genuine skill needs and regional variations across Australia. Short-term visas will be issued for two years, while medium-term visas will be issued only for more critical skills shortages and for up to four years. Both streams will include mandatory labour market testing with limited exemptions, a new non-discriminatory workforce test; mandatory criminal history checks, a market salary rate assessment and a new two-year work experience requirement. Additionally there will be tightened English language requirements for the medium-term stream. The new visa will also include a strengthened training obligation for employers sponsoring foreign skilled workers to provide enhanced training outcomes for Australians in high-need industries and occupations. These changes will give Australian job seekers more opportunities to find work while finding the right balance so businesses can prosper by acquiring the expertise they need.

Turnbull stressed that migration was an integral part of the Australian story and its success had helped the nation to become the world’s most successful multicultural nation. “There is no doubt foreign workers have played a significant role in the remarkable economic growth of the nation," he said. “More than 100,000 workers from 30 countries helped build the Snowy Hydro Scheme while John Howard’s (former Australian prime minister) decision to focus our permanent migration programme on bringing in skills has helped the nation enjoy more than two decades of continued economic growth," Turnbull added.

Australia India Business Council (AIBC) national chair Sheba Nandkeolyar said the news of the 457 visa scrapping had come as a surprise.

“This may perhaps impact not merely Indian companies in Australia but also Australian companies - many of who tap into international skills in digital, analytical and engineering areas," Nandkeolyar said. “However, the Prime Minister did advise that there will be a new visa category introduced for the critical skills shortage areas, and I hope this will impact positively on the Indian IT/ICT (information technology/information and communication technology) industry, among others," she said.

The 457 visa was introduced in the 1990s to quicken the entry of business professionals and highly skilled migrants but over time it was opened up for a broad category of workers. The programme was hit by controversy with allegations that the visa was being misused by employers to import cheap workers who lack necessary skills. Turnbull’s announcement comes days after he visited India where a range of issues, including national security, counter terrorism, education and energy, were discussed and six agreements were signed.

Implementation of the new visa will begin immediately, with full implementation to be completed by March 2018. PTI

Mint’s Elizabeth Roche in New Delhi contributed to this story.

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Published: 18 Apr 2017, 12:34 PM IST
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