Changes due from Government Budget
On the 12th May 2009 the latest Australian Budget was announced by Mr Wayne Swan. The following is a quote received the following day.
“The worst deficit in modern history and the worst in most of our lifetimes was announced tonight by Treasurer Wayne Swan. $57.6 Billion deficit is massive given that only 18 months ago the country had a $22.0 Billion surplus when Kevin Rudd took the office of Prime Minister of Australia.”
Obviously, the Australian Government must rein in spending in any way possible, as well as cut back on those Emigrating to Australia, mainly in the Skilled sector, as those already in Australia are being laid off, whether they are Emigrants or Australian Citizens.
I have mentioned in previous articles, there is always going to be an intake of skilled workers along with the other sectors of Immigration, due to the fact that there are always going to be those who chose to leave Australian shores, either Temporarily or Permanently, from both areas of Australian Citizens or Emigrants, thus draining Australia to some extent of Skilled workers.
The Australian Economy is considered by many to be one of the most robust in the World currently and will therefore be one of the first to recover. This could be as near as 12-18 months from now.
Those who are currently applying for a skilled visa will be placing themselves at the front of the queue, once their visa is granted, to take up the opportunities which will present themselves as the Economy turns around.
Until this occurs, the Australian Government and more specifically, the Department of Immigration are having to slow the intake of Emigrants to our shores, and the following was announced in the 2009 Budget speech.
· The Migration Program will total 168,700 places for 2009-10
· The Federal Government’s 2009 Budget has made a further cut to the permanent skilled migration intake to 108,000 places for the 2009-10 program (a 20% reduction to the previous budget)
· The reduction will be achieved largely through cutbacks in the General Skilled Category
· A job-readiness test will be introduced for onshore skilled applicants
· The Government will be increasing the English language requirement for trades occupation to IELTS 6 from 1 July 2009 for offshore applicants and 1 January 2010 for onshore applicants
· There will be fewer visas granted to trade level occupations
· There will be an increase in family migration places to 60,300, including addition 2500 for partners, 1000 for contributory parents and 300 for child visas
· Increased humanitarian Program to 13,750 (7750 Special Humanitarian and 6000 refugee)
· Increased funding to improve detention centres
· DIAC staff reductions
Increased costs for DIAC to establish the new Office of the MARA
Should you require visa assistance, please complete our FREE visa assessment application. We will respond to you within 48 hours.
Immediate change to 457 applications
Affective from 15th May 2009, the Department of Immigration and Citizenship (DIAC), have decided to no longer allow those whose skilled occupations are to be found on the ASCO (Australian Standard Classification of Occupations) list in the 5000-7000 range to apply through the “457″ Business (Long Stay) visa. This visa, in the past, has been the vehicle for many in these skills, enabling them to achieve Sponsorship from an Employer looking to fill vacancies in their business. Due to the fact of the slow down in the Economy and therefore Employment, DIAC have chosen to remove this option to reduce the application load in the “457″ areas within DIAC, as well as to reduce the number of applications from lower skilled workers, as there should now be sufficient workers within Australia, who are Australian Citizens, Australian Permanent residents or Elligible New Zealand Citizens.
Those who have already put in an application will be advised by DIAC and given the option of accepting a refund.
Those still wishing to employ those on the 5000-7000 skill range still have the option of applying via the ENS (Employer Nomination Scheme) – a 5 year Permanent visa or the RSMS (Regional Sponsored Migration Scheme) – a 5 year Permanent visa.
457 changes July 1 2009
The Department of Immigration and Citizenship (DIAC) intend to make significant changes to the “457″ Business (Long Stay) 4 year Temporary visa. This visa is one of the most prolific vehicles used by those with a skill, allowing them to immigrate to Australia. The “457″ allows a relatively speedy way of entering Australia on the Skill Program, without having the relevant skill assessed by the Recognised Assessing Authority which can be found on Form 1121i.
One of the criteria which must be met is the Minimum Salary Level (MSL). The MSL is always being reviewed by DIAC to enable those on the “457″ to keep pace with the Australian workers.
On 1st July 2009 DIAC will be increasing the MSL by 4.1%.
As an example, those on Schedule “A”, which is the majority of the skilled work force, this will take the salary from the current $43,440.00p.a. before tax, but does not include the 9% Superannuation, to $45,222.00 ($869.65 p.w.) as a “Base Salary”. The 9% Superannuation must be added to this, making the Salary Package $49,290.00 ($947.90 p.w.). Any further additions such as Living Away from Home, must be added to this.
Schedule “B” employees are those in the “IT” Industry with ASCO codes 1224-11 and 2231. Their base salary will increase from $59,477.00 before Tax and Super to 61,916.00.
Schedule “C” employees are those who work in Regional Australia who are represented in Schedule “A”, with a few exeptions not listed here. The Base Salary will go from $39,100.00 before Tax and Super to $40,705.00.
Schedule “D” employees are those who work in Regional Australia who are represented in Schedule “B”. Their Base Salary will go from $53,530.00 before tax and Super to $55,725.00.
In September 2009, there will be a further adjustment to the MSL to ensure overseas workers are not exploited and the local wage and salary levels are not undermined.
There has already been the increase in the required English language level via IELTS from an average of 4.5 to an average of 5.0.
From 1st July 2009, DIAC will be gradually introducing formal assessment of skills in the “457″ visa for immigrants from high risk countries in Trade Occupations as well as Chef.
Employers using the “457″ visa as a vehicle to hire staff, must demonstrate in the future, their commitment to hiring of local Australian Citizens, Australian Permanent Residents or Eligible New Zealand Citizens.
Employers using the “457″ visa as a vehicle to hire staff, must demonstrate in the future, their commitment to hiring of Apprentices or Trainees as well as their commitment to the training of the local Australian Citizens, Australian Permanent Residents or Eligible New Zealand Citizens.
The extension of the labour agreement pathway to all ASCO 5-7 occupations, to ensure that the employers using the “457″ visa program to access these occupations satisfy obligations on local training and employment.
