Are the changes of 457 visas good or bad for us?

The news of the 457 visa cancellation dawned too suddenly. (Photo From: Lukas Coch in Buzzfeed news )
Malcolm Turnbull abolishes 457 visas.

On the 18th of April, the Australian Prime Minister Malcolm Turnbull officially announced on the official Twitter and Facebook pages that, the Australian government had no choice but to eradicate 457 temporary work visas. The government stated that the new law ought to protect local workers in addition to young Australians. Prime Minister Turnbull likewise asserted that it would issue a new visa.

The news of the 457-visa cancellation dawned too suddenly; the majority of applicants experienced the change of visa to be somewhat unacceptable. The cancellation of the 457 work visas will inevitably affect foreigners in Australian as well as likewise affecting foreigners who wish to migrate to Australia.

The news has become a significant issue for the Australian society.

Whether a student or a professional, this time visa reform will affect each person who is a foreigner who has already worked in Australia. In the light of this visa reform of major change, we have to wonder; following such changes, who are benefiting, and who are we hurting? And are you ready to face this upcoming visa change?

As a nation suitable of introducing foreign immigrants, the risk most certainly outweighs any possible benefit.

457 visas will be officially replacement by the new Temporary Skill Shortage (TSS) visa in March 2018. TTS visas are consist of two modes; namely a two-year short-term stream as well as a 4-year medium-term stream. In addition, it will contain certain of the priorities to safeguard Technical workers.  In accordance with the plans of the government, the number of applicants who meet the new temporary visa standards will be reduced thus offering the local workers with numerous benefits.

After the new visas were announced, Australians will firstly obtain job opportunities. According to the unemployment rate, young people, with high unemployment amongst themselves, have already issued tens of thousands of 457 visas. Young Australians have no prospects for competing with 457 visa holders. Consequently, the new visa law can, to a certain degree, protects young Australian workers. It enhances the integrity as well as the quality of the Australian skilled migration programme. The government wants to establish and maintain the stability as well aa equality of employment opportunities.

However, the majority of the long-term unemployed tend to lose confidence in their abilities, even lacking in professional skills and competencies. They are under qualified for these jobs.

Hence, benefits of 457-visa reform are actually not necessarily beneficial for Australia, however the negative impact is indeed significant.

According to the Subclass 457 quarterly report by the Australian Government Department of Immigration and Border Protection on the 31st of March 2016, Australia has 457 visa holders with 97,770 people, down 9.2% from the previous year.

Primary visas granted by Australian and New Zealand Standard Classification of Occupations (ANZSCO) occupational group (Screenshot: Rong Shan)

Managers and professionals comprise a large proportion of the 457 visa holders.

Primary visas granted – top three citizenship countries (Screenshot: Rong Shan)

Top three citizenship countries of primary visas granted are, namely; India 24.9%, the United Kingdom 17.2%, as well as China 6.2%. It implies that the primary visa holders in Australia are less than 1% of the Australian working population.

In Australia’s professional areas plus management, already a large number of 457 visa employees exists.

The big four accounting and advisory firms will be hit by the abolition of the 457 visa (Photo: Economia)

The big four accounting and advisory firms (PwC, KPMG, EY, and Deloitte) possess 5% of employees holding 457 visa. There is likewise a large number of information media industry, telecommunications, scientific companies, as well as universities which will be affected by policy changes.

To improve the New visa requirements, the introduction of foreign professionals will be increasingly more difficult; especially for the management consulting department which in turn has a great impact on the accounting and advisory firms. They correspondingly are required to pay additional training fees. This may force them to employ additional local labour.

“The government takes advantage of our short-term work and does not provide benefits to permanent residence. The accounting jobs have been oversubscribed. They could not find a job at the present moment. In the future, we won’t have any prospects as well,” Mrs. Ye said.

Mrs. Ye adds, “If the purpose of the new visa was really to select the “best and brightest ” as the president stated, it is likewise possible that IELTS scores can be added to the minimum requirements of eight, or must have Honor Graduate Certificate, instead of blatantly protecting certain of the idle local people.”

Changes in new visas have likewise hindered restrictions on both universities and students.

The new visa stipulates that the university lecturers are a restricted visa category. They are only two years visa (may be extended for two years), nonetheless no right to applicant permanent residence. In addition, applicants likewise possess two years of work experience. This means that Australian universities will be unable to discover research talent from PhD students who have graduated from international universities since they possess no work experience. This will limit the recruitment of overseas researchers thus decreasing the ability to compete with the best universities in worldwide.

Top 15 nominated occupations for primary applications granted in 2015 16 to 31 (Screenshot: Rong Shan)

According to the latest data, almost two thousand visas are issued in the university lecturer category. International researchers have made a significant contribution to both research and innovation within the Australia education industry. Several people have previously stayed in Australia to become citizens. However, owing to the new visa, these higher requirements will result in the university possibly losing a huge contribution from international researchers.

If Australia’s Group of Eight universities are hampered, there will be two serious consequences. Firstly, these university will not do well international rankings in worldwide, because this requires the highest research results. Currently, there are six universities in the world’s top 100 international listing. This is extremely significant for attracting international students; especially Asians highly focus on the ranking. On the other hand, the education export is Australia’s third largest export, just behind iron and coal. The education industry has likewise created countless career opportunities. These universities need international mobility academic researchers, so that the best people in worldwide come to Australia to study as well as to cultivate Australian talent.

Moreover, students with immigrant intentions may have to abandon the choice of Australian schools. This may affect the University’s funding towards international student fees.   This is a circulatory system because the university relies on international student fees to pay for research costs, thus resulting in high rankings. The new visas will furthermore increase the application conditions, including work experience, as well as a higher standard of English. It will restrict certain students who had planned to become immigrants.

To which people have to ask now; does this reform really truly Australia’s labour market?

Now, over and above 200 jobs have been removed on the visa list. This includes particular jobs that even possess a very social status, such as; archaeologist, author, biotechnologist, dental therapist, geophysicist, and historian etc.

The new two-year short-term visa will not be applicable for those with Australian permanent resident status. The new four-year medium-term visa will have a higher standard of English skills as well as criminal record. It is clear that the new visa will be more stringent than the 457 visas.

Previously, for employers, professionals, as well as students, the 457-visa had been a practical visa. If the Australian employer does not find a suitable employee in the local Australians or Australia PR, it can guarantee that international professionals work in their company. Whether a student in Australia or a person living in Australia, someone can work in Australia for four years through a 457 visa and eventually obtain permanent residence in Australia.

But now, the new visa will inevitably affect the choice of study as well as work for future students and professionals, however moreover affect the growth of Australia’s economy. In actual fact, visa reform will eventually convey greater uncertainty plus risk to the Australian economy.

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