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Submission on Visa Simplification: Transforming Australia’s Visa System
September 2017
Carol Giuseppi CEO
Tourism Accommodation Australia (02) 8218 1816
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Contents
1. Introduction ...................................................................................................................................... 3
2. Visa Simplification in the Accommodation Sector ........................................................................... 3
3. Visitor Visas ..................................................................................................................................... 4
3.1. Opportunities to Reduce Visitor Visa Subclasses .................................................................. 4
3.2. Working Holiday Makers ........................................................................................................ 5
3.3. Streamlined Application Process............................................................................................ 6
4. Labour Profile ................................................................................................................................... 6
4.1. Labour Shortages ................................................................................................................... 7
5. Student Visas .................................................................................................................................... 7
5.1. Graduate Visas ....................................................................................................................... 8
6. Permanent Work Visas ..................................................................................................................... 9
7. Temporary Work Visas ................................................................................................................... 11
7.1. Temporary Work Visas – Trusted Employer Programme Stream ........................................ 12
8. Conclusion ...................................................................................................................................... 13
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1. Introduction
Tourism Accommodation Australia welcomes the opportunity to make a submission to Department of
Immigration and Border Protection responding to the Department’s Policy Consultation Paper on Visa
Simplification: Transforming Australia’s Visa System. This submission will provide feedback on how
TAA believes Australia’s visa system can best support Australia’s economic and social interests, as well
as ensuring that Australia remains a competitive and attractive destination for temporary and longer-
term entrants.
TAA is the peak industry association representing the hotel, motels and serviced apartments in
Australia’s $7.8 billion accommodation sector. TAA is focused on and committed to the future
development and growth of the accommodation sector within Australia’s vibrant tourism and
hospitality industries.
The accommodation sector supported 184,110 full-time equivalent jobs in 2015-16 (85,710 jobs
through direct employment and a further 98,399 jobs through flow-on impacts). This accounts for
18.3% of jobs supported by the tourism industry, and 1.8% of employment in the Australian economy.
Jobs supported by the accommodation sector contributed $11.7 billion in 2015-16 to Australian
household incomes. The accommodation sector contributed $1.18 billion in Australian Government
tax revenue during 2015-16.
2. Visa Simplification in the Accommodation Sector
TAA welcomes the Government’s aspiration to rationalise and simplify Australia’s complex visa
system. Given that tourism, temporary migration and permanent migration benefit Australia
economically and socially, a key consideration in the simplification process is ensuring that any
simplification does not come at the expense of the visa system’s integrity. A redesigned visa system
must continue to meet the economic, social and cultural needs of the Australian community while
restoring public confidence in temporary, provisional and permanent migration.
TAA’s interest in the proposed simplification of Australia’s visa system relates to three areas – visitor
visas, student and graduate visas, and skilled migrant visas (both temporary and permanent). These
visas account for 29 of the currently available visa subclasses. TAA’s submission will not comment on
possible changes to the visa framework relating to Refugee and Humanitarian Visas, Family and
Spousal Visas or Other Visas.
TAA considers it important that any visa rationalisation process encompasses the following principles:
A focus on delivering demand-driven outcomes for visa applicants and industry;
Reduced complexity, including through simpler, streamlined application processes;
Comprehensive understanding of industry’s labour needs relating to permanent and
temporary work and graduate visas; and
Provision of timely data on graduates, employment outcomes and skills-shortages through
better resourcing of labour market analysis and forecasting.
TAA has made some preliminary recommendations (Recommendations 1, 2, 3, 5, and 6) in this
submission on how the visa system can be simplified while retaining important distinctions between
visitor visas, working holiday maker visas, student visas, temporary work visas and permanent work
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visas. A further body of work is required to determine the feasibility of these recommendations, and
the specific underlying conditions associated with each new visa subclass.
Skilled permanent and temporary migrants including students and graduates play an important role
in industries such as the accommodation sector, which supports close to 200,000 full-time-equivalent
jobs and with a growing supply pipeline of 25,000 rooms in Sydney and Melbourne alone by 2022.
Every new hotel opening means significant new demand for labour, with an average of 0.42 employees
per room. Recommendations 4 and 7 provide immediate-term solutions on how the visa system can
be simplified to better meet the growing labour needs of the accommodation sector.
3. Visitor Visas
Tourism is a core industry rebalancing the Australian economy following the resources investment
boom, and is playing a dominant role in facilitating Australia’s transition from a resources-based
economy to a services-based economy. In a demonstration of this, in 2015-16 year goods exports fell
4% while services exports – consisting of tourism and education exports – rose 9%. In the year ending
June 2017, the number of international visitors to Australia rose 8.7% to 7.8 million, and their
associated visitor expenditure rose 6.5% to 40.6 billion.
Sustained growth in international visitation is crucial in ensuring that Australia’s meets the Tourism
2020 overnight visitor expenditure target bracket of $115-$140 billion by 2019-20. By 2024-25, the
expenditure of international tourists will account for 41% of total visitor spend, increasing from 31%
in 2014-15. Spend growth of international visitors is forecast to increase at 9.9% in 2017-18, while
spend growth for domestic visitors over the same period is only forecast to grow at 3%.
However, there is concern that the forecasted growth in international visitation will be jeopardised if
Australia does not have internationally competitive visa costs and processes. Uncompetitive visa costs
and processes function as a tariff barrier inhibiting international trade.
Particularly important in this regard is reducing the expensive visa costs for visitors from China and
India, which already account for 18% of visitors and have the potential to grow at 11.9% and 8.7%
respectively per annum until 2026-27. TAA commends the government for the work it has done thus
far in providing a more seamless travel process for these nationalities.
3.1. Simplification of Visitor Visa Subclasses
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Australia currently has four visitor visa subclasses (subclasses 600, 601, 651 and 771). To ensure
Australia’s visitor visas are easier to understand and better suited to a growing number of
international visitors from a diverse range of source markets, there is an opportunity to replace the
present four visitor visas with one visa subclass with two streams to differentiate between the
conditions and eligibility of the existing subclasses. This effect of this would be to make the visitor visa
system easier to navigate for consumers and easier for the Department to administer.
There are sufficient synergies between the eVisitor (651) and Electronic Travel Authority (601) that
these two visa subclasses can be combined into one stream. TAA recommends that this new visa
stream be available for $0, in line with the 651 visa. Clarity should also be provided on the criteria
required for source markets, (who do not have access to either the 651 or 601 visas), on how they can
gain access to the new subclass 600 visa (Stream A). This will assist in ensuring that the eligibility for
this stream will extend to more visitors and will also assist in reducing tariff barriers to tourist trade.
Visitors ineligible for Stream A will have access to Stream B, which will mirror the costs, eligibility and
conditions of the current Visitor Visa (600). Visitors only transiting through Australia who previously
would have relied upon the Transit Visa (771) will instead have access to Stream B, with caveats placed
upon it limiting visit durations to 72 hours and reducing the application charge from $140 to $0.
Additionally, Stream B will retain functionality for Frequent Traveller and Family Sponsored Visitor
Visas. Stream B will only be available to applicants from countries ineligible for Stream A.
Recommendation 1
TAA recommends the current Visitor Visas to be restructured as below:
New Visa New Subclass Stream Previous Visa Names Previous Subclass
Visitor Visa 600
A eVisitor 651
Electronic Travel Authority 601
B Visitor 600
Transit Visa 771
3.2. Working Holiday Makers
Working Holiday Maker Visa
(subclass 460)
Stream A Stream B
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The Working Holiday Maker visa (417) and the Work and Holiday visa (462) be combined into a
reconfigured Working Holiday Maker visa (460) with two streams. The conditions of the 460 visa
(Streams A and B) should largely mirror the existing 462 visa, with the exception that ‘specified work’
for the purposes of obtaining a second 460 visa would include work performed in the tourism and
hospitality industries in any area of regional Australia, not just Northern Australia.
Streams A and B of the 460 visa would be used to differentiate between source markets that have
capped intakes of working holiday visa grants and source markets that have unlimited intakes. The
requirements relating to education levels, functional English and letter of home government support
that apply to some source markets would remain. In line with commitments made in 2016 with the
passage of the Working Holiday Maker Visa Reform Package through Parliament, the maximum
eligible age for a 460 visa should be increased from 30 to 35.
Recommendation 2
TAA recommends that the Working Holiday Maker (417) and Work and Holiday Maker (462)
be combined into a new Working Holiday Maker Visa (460).
New Visa New Subclass Stream Previous Visa Names Previous Subclass
Working Holiday Maker Visa
460 A Working Holiday Maker 417
B Work and Holiday 462
3.3. Streamlined Application Process
In line with observations in the Policy Consultation Paper, a simpler visa application system utilising
greater digitisation and innovative online technologies would deliver a faster and more user-friendly
client experience.
To achieve this outcome TAA recommends a streamlined online application process that suggests
relevant visas based on the customer’s purpose for visitation, intended length of stay, intended
activities while in Australia and country of origin. This would allow the customer to avoid any confusion
about the distinctions in eligibility and conditions between Streams A and Stream B of the 600 and
460 visas.
Ultimately this would build on the current Visa Finder tool on the Department’s website and it would
become the main navigation page for visitors interested in coming to Australia.
Example:
At present, a visitor aged 18-30 from the United Kingdom looking to come to Australia for a holiday is
presented with four different visa options (601, 651, 600, 417). If the Visa Finder tool incorporated
questions about the intended length of stay and intended activities while in Australia, and if the
currently available visas were condensed into a 600 visa and a 460 visa incorporating different
subclasses, the applicant would receive one visa recommendation tailored to his or her responses.
4. Labour Profile
TAA’s Hotel Labour Benchmarking Study 2017 amongst 3, 4 and 5 star hotels indicated that 19.7% of
all employees in the accommodation sector are international workers. 56.2% of these are
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international students, representing 11% of the total workforce. Working holiday makers account for
17.8% of foreign workers, representing 3.5% of the total workforce. Temporary skilled migrants
account for 26.1% of foreign workers, and 5.1% of all employees. These workers fill vacancies unable
to be filled by the local labour supply.
4.1. Labour Shortages
Employing Australian workers is always the first priority of accommodation business because it is the
most efficient and lowest cost way of sourcing skilled and unskilled labour. However, restricted labour
market mobility, seasonality of demand in regional areas, considerable growth in supply and consumer
demand, labour competition from other sectors and a lack of appetite for careers in hospitality and
tourism all combine to create substantial labour market gaps across the accommodation sector1.
The Hotel Labour Benchmarking Study 2017 found a labour force vacancy rate of 8.1%. This is
extremely high when compared against the nationwide Accommodation and Food Services industry
average of 1.8%. ‘Limited applicants with sufficient skills and experience’ was the biggest factor
contributing to skills shortages followed by ‘competition from employers in other industries.’
As a result, employers in the accommodation sector continue to need access to a flexible temporary
migration framework responsive to the sector’s specific needs. International workers through a range
of visa programmes have become a crucial element of the labour supply mix in meeting labour and
skills shortages.
Deloitte’s Australian Tourism Labour Force Report released in October 2015 found that the tourism
and hospitality industries currently have an immediate labour force shortage of 38,000, which is
projected to increase to 123,000 workers by 2020. This report did not account for policy changes,
meaning that the changes to the skilled migration programme from April 2017 could exacerbate this
forecasted labour shortage. Additionally, it did not account for the huge growth in accommodation
rooms projected to 2022 (consisting of more than 200 new hotels and 30,000 rooms in the pipeline)
which will increase the industry demand for skilled labour.
5. Student Visas
The primary purpose of the student visa is to facilitate study. However, in order to raise additional
funds while in Australia international students are permitted to work 40 hours per fortnight when the
course is in session and unlimited work hours during scheduled course breaks. International students
1 Colmar Brunton, 2016, Tourism and Hospitality Careers Report
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are willing to work low-skilled jobs spurned by local residents, and generally offer the flexibility
availability required in a 24/7 service industry.
In addition to the Student visa (subclass 500), there is also a Student Guardian visa (subclass 590) and
two graduate visas – the Temporary Graduate visa (subclass 485) and the Skilled Recognition Graduate
visa (subclass 476). In the interests of simplicity, and given that the purposes of these visas all directly
relate to international students or graduates, these four visa subclasses could be reduced into one
visa subclass with three streams.
The 500 visa (Student Stream) would incorporate the terms, conditions and eligibility of the existing
subclass 500 visa. The 500 visa (Guardian Stream) would incorporate the terms and conditions of the
existing subclass 590 visa.
Given their synergies, subclasses 485 and 476 could be combined into a single, graduate stream. The
criteria for this stream should relate to having recently completed a CRICOS-registered course related
to an occupation on the Short-term Skilled Occupations List (STSOL) or the Medium & Long-term
Strategic Skills List (MLTSSL), or having recently qualified with a higher education degree. TAA does
not see merit maintaining a separate subclass for graduate engineers.
Recommendation 3
TAA recommends that the 500, 590, 476 and 485 subclasses be combined into a Student or
Graduate Visa with three streams (Student, Guardian, and Graduate).
New Visa New Subclass Stream Previous Visa Names Previous Subclass
Student or Graduate Visa
500 Student Student 500
Guardian Student Guardian 590
Graduate Skilled Recognition Graduate 476
Temporary Graduate 485
5.1. Graduate Visas
The existing 476 and 485 visas have validity durations of a maximum 18 months. This duration
precludes graduates from applying for a temporary work visa at the expiration of their graduate visa
as occupations on both the STSOL and MLTSSL require a minimum of two years’ work experience.
The removal of pathways that enable graduates to remain working in Australia will reduce the supply
of international students. There is already a wealth of anecdotal evidence of this from culinary hotel
schools in Sydney and Melbourne. This decline in supply of international students will negatively
impact Australia’s education exports and the accommodation will lose access to a high-value labour
source.
International students and graduates are a high-value labour source filling critical labour shortages in
the accommodation sector. International students, who represent 11% of the total accommodation
sector workforce, make up 18% of restaurant and bar staff and 7.3% of kitchen staff. Demand far
outstrips the local supply of cooks and chefs, and international culinary graduates are one of the most
important means of filling the critical shortage of culinary occupations.
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TAA recognises there are integrity issues relating to the student visa, particularly in ensuring that it is
issued only to genuine temporary entrants and is not functioning as a de-factor permanent residency
programme. However, to ensure that it can maintain productivity, remain innovative and
internationally competitive, the accommodation sector needs a sufficient supply of international
students and culinary graduates to complement its workforce mix. The accommodation sector also
requires a permanent residency pathway to allow the best international graduates with genuine
interest in careers in the hospitality industry to remain in Australia long-term. TAA is concerned that
the two year work experience requirement for occupations on the STSOL and MLTSSL jeopardises both
this and Australia’s attractiveness as a destination for longer-term entrants. TAA would welcome
further consultation with the Government prior to the effective date of the two-year work experience
requirement in March 2018.
Recommendation 4
TAA recommends that the relevant practical experience of international students gained
throughout their studies counts towards the calculation of two years’ work experience for
occupations on the STSOL and MLTSSL.
6. Permanent Work Visas
At present, there are 23 Work and Skilled Visas. There is significant potential to reduce this number
by primarily emphasising the distinction between permanent work visas and temporary work visas,
and by then incorporating new streams with different eligibility requirements to maintain the required
level of differentiation.
Where significant synergies exist between current visa subclasses offering permanent residency, those
subclasses should be merged into a new permanent work visa with four different streams.
The 132, 888, 890 and 891 visas could be merged into a new Investment and Innovation Stream. As a
minimum requirement for this stream, applicants should be required to have held, or commit to hold,
business or company assets or investments of $1.5 million for four years. This accords with current
requirements.
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The 186, 187, 190, 892, 893 could be merged into a Permanent Work Visa (Nominated Stream). The
distinctions between the current visas are important, but minimal. The 186 requires employer
nomination, the 187 requires employer nomination in a regional location, and 190 requires
nomination by a state or territory government. All three relate to suitably qualified permanent skilled
migrants. In the new stream, employer or state/territory government nomination would continue be
required, in addition to meeting the skills, qualification and English language requirements of the
position.
The two distinguished talent visas (124 and 858) can be merged into a new Distinguished Talent
Stream. The only distinction between the current visas is that the 124 visa is for offshore applications,
while the 858 is for onshore applications. Given the ease of online applications and the scope to
facilitate greater digitisation by introducing online-only applications, this distinction has become
irrelevant.
Given the intent of both the 189 and 887 visas are to facilitate the entrance of skilled migrants into
Australia independently of state/territory nomination or employer nomination, these two subclasses
can be combined.
Recommendation 5
TAA recommends the current work visas with permanent residency be consolidated into one
Permanent Work Visa as below:
New Visa New Subclass
Stream Previous Visa Names Previous Subclass
Permanent Work Visa
450 Investment and Innovation
Business Talent (Permanent) 132
Business Innovation and Investment (Permanent)
888
Business Owner 890
Investor 891
Nominated Employer Nomination Scheme 186
Regional Sponsor Migration Scheme
187
Skilled Nominated 190
State or Territory Sponsored Business Owner
892
State or Territory Sponsored Investor
893
Distinguished Talent
Distinguished Talent 124
Distinguished Talent 858
Independent Skilled Independent Visa 189
Skilled Regional Visa 887
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7. Temporary Work Visas
A consolidation of the 8 visa subclasses currently providing for temporary work into one new
Temporary Work Visa (subclass 401) with four streams could yield a net reduction of 7 visas. The four
streams would be Investment and Innovation, Short-stay, Skills Shortage and Trusted Trader
Programme.
The Investment and Innovation Stream would incorporate the terms and conditions of the existing
188 visa to allow individuals to own and manage a business in Australia or conduct business and
investment activity in Australia, provided that they control at least $1.5 million in deployable assets
to support that business or investment activity. In effect, this would double the threshold for the
existing 405 visa which currently requires assets worth $750,000 (or $500,000 in a regional area).
The Skills Shortage Stream of the Temporary Work Visa would include the 457 and 489 visas and be
eligible for skilled migrants in occupations on the STSOL and MLTSSL. Where work is to be performed
in regional areas, nomination of a temporary migrant would be required by a state of territory
government or sponsorship would be required by an eligible relative. Where a temporary migrant is
sponsored by an employer, the skilled work could be performed anywhere in Australia. The Skills
Shortage Stream would be entirely consistent with the skilled migration reforms announced on April
19, 2017.
Eligibility for the Short-stay Stream would extend to temporary work migrants currently reliant on the
400, 403, 407 and 408 visas. Given the variance of durations, conditions and purposes of these existing
subclasses, the requirements for the Short-stay Stream that allow flexibility for industry and
strengthen integrity of the temporary work migration program are best determined by Government.
Recommendation 6
TAA recommends the current work visas with temporary residency be consolidated into one
Temporary Work Visa as below, including the introduction of a Trusted Employer Programme
Stream:
New Visa New Subclass
Stream Previous Visa Names Previous Subclass
Temporary Work Visa
401 Investment and Innovation
Business Innovation and Investment (Provisional)
188
Investor Retirement 405
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Short-stay Temporary Work (Short-stay Specialist)
400
Temporary Work (International Relations)
403
Training 407
Temporary Activity 408
Skills Shortage Skilled Regional (Provisional) 489
Temporary Work (Skilled) 457
Trusted Employer Programme
7.1. Temporary Work Visas – Trusted Employer Programme Stream
From an employer’s perspective, intra-corporate transfers of Executive or Senior Managers allow
shortages to be addressed efficiently without losses to business productivity. Local employees also
benefit from intra-corporate transfer programmes as they become exposed to the skills and
knowledge of their global peers. Intra-corporate transfers provide significant economic benefit to the
Australian economy more broadly through the transfer of their expertise to Australian businesses.
The changes to the 457 Visa announced in April 2017, particularly removing permanent residency
eligibility for occupations on the Short-term Skilled Occupation List, will reduce the ability of
accommodation hotels to access senior staff through intra-corporate transfers. The changes will also
mean that the skills development of the local workforce, currently boosted by exposure to
international best-practice, will be hampered.
TAA’s Hotel Labour Benchmarking Study 2017 found that 5.1% of all employees are skilled migrants.
Skilled migrants are most commonly employed as Department Managers, often as intra-corporate
transferees, who provide important leadership and mentoring for other hotel employees. Under the
current settings, there is no pathway to permanent residency for these Department Managers.
An Australian Trusted Employer Programme would mirror the existing Trusted Trader Programme
currently available to accredited businesses to streamline the importation and exportation of goods
and trade across Australia’s border. A Trusted Employer Programme would be available for accredited,
reputable employers, and allow that employer to sponsor temporary skilled migrants as an intra-
corporate transfer where that migrant is currently employed by a foreign parent company, branch,
subsidiary or affiliate of the Australian business.
A Trusted Employer Programme for temporary skilled migration is preferable to the existing measures
that facilitates company-specific labour agreements. Company-specific labour agreements are only
available where labour shortages persist in spite of industry labour agreements or designated area
migration agreements. A Trusted Employer Programme would allow accredited businesses to access
employees from their existing international labour pool to fill senior-level labour shortages in Australia
without first extending those terms to all business across an entire industry or geographic area.
Certain caveats would need to be applied to a Trusted Employer Programme to ensure that it aligns
with the policy intent of the April 2017 skilled migration changes. It is intended that the Trusted
Employer Programme Stream only be available for Executive and Senior Management positions (which
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includes Department Heads in accommodation hotels) above an annualised salary threshold of
$96,400 with high functional English proficiency. To protect the integrity of the programme,
businesses seeking Departmental accreditation would first need to be sponsored by a relevant
industry association and have a demonstrated history of compliant employment practices. While
current labour market testing exemptions due to international trade obligations would continue to
apply, employers would need to demonstrate a non-discriminatory workforce test and a significant
commitment to providing careers for Australian workers.
Similar to the American and Canadian inter-corporate transfer programmes, the initial visa duration
of a temporary skilled migrant employed through the Trusted Employer Programme would be three
years, with requests for two year extensions up to a maximum period in Australia of seven years. The
migrant would have to have been continuously employed by the foreign office of the Australian
business for a minimum of twelve months immediately before being transferred to Australia, and their
visa would only remain valid while they remain employed by the accredited employer.
Through existing free trade agreements, accommodation businesses with operations in countries such
as Singapore, Malaysia, Indonesia, Vietnam and Thailand currently have access to intra-corporate
transfers for a maximum period of fourteen years for Executives, Managers and Specialists.
Accommodation businesses also have access to Executive and Managers as intra-corporate transfers
from China, Korea and Japan for stays of four years with capacity for extension.
However, the greatest demand for intra-corporate transfers in the accommodation sector is for
Department Heads from Europe, North America and the United Kingdom. There are no FTAs from
these source markets that provide reciprocal access to intra-corporate transfers with validity
durations longer than the general terms of the 457 visa. The introduction of a Trusted Employer
Programme Stream in the Temporary Work Visa would remove this discrepancy.
Recommendation 7
Based on the existing Trusted Trader Programme, TAA recommends the introduction of a Trusted
Employer Programme Stream into the Temporary Work Visa.
8. Conclusion
There is potential to reduce the number of visitor, work and student visas from 31 to 5. In order to
retain functionality and the required differentiation in eligibility, conditions and applicant
requirements, a reduction of this magnitude requires Streams within each new visa subclass.
TAA has made some preliminary recommendations above proposing how the current visas could be
rationalised and simplified. Given that these are only preliminary recommendations, TAA is willing to
continue to work with the Department on the precise nature of any specific visa simplification changes
as they relate to the tourism and hospitality industry.
In simplifying the current arrangements relating to permanent and temporary work visas, the labour
requirements of industry also need to be considered, particularly where there is an inadequate local
supply of sufficiently skilled and experienced labour. The changes from April 2017 to the temporary
and permanent skilled migration programmes add a new level of complexity for businesses relying on
temporary skilled migration to meet critical labour shortages.
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In contrast to other recommendations that can be implemented over the longer-term after more
consideration, it is important that Recommendations 4 and 7 above are scrutinised and actioned as a
priority.
There is urgent need to clarify the operation of the two-year work experience requirement for the
Temporary Skills Shortage visa which will take effect from March 2018. TAA recommends that in order
to provide a pathway to longer-term residence for the best international graduates (particularly
culinary graduates) who are committed to a career in Australia’s hospitality industry, the practical
component of international students’ degrees should be included in the calculation of two years’ work
experience.
To ensure that accommodation hotels continue to have access to intra-corporate transfers to fill
labour vacancies at Executive and Senior Management levels (including Department Heads), it is
important that appropriate consideration be given to the implementation of a Trusted Employer
Programme for accredited businesses as part of Australia’s temporary skilled migration programme.
TAA looks forward to working with the Government and Department on strategies that facilitate a
demand-driven visa system that recognises industry’s labour needs, is supported by and responsive
to timely data, reduces overall complexity and retains the visa system’s integrity.
