Turnbull Government

Today, it was announced by the Turnbull Government that it is going to take on a review of the wide range of issues that have an effect on the working holiday maker visas 417 and 462’s taxation and supply. This, according to Hon Kelly O’Dwyer MP, the minister for Small Business and the Assistant Treasurer.

So that these issues could all be considered, the Commonwealth is going to hold off the commencement of the previously announced changes so that all working holiday makers are treated as non-residents for tax purposes from the 1^st of July 2016 for 6 months, awaiting the results of the review process.

”The Government has listened to issues raised by stakeholders about workforce challenges faced by industries in regional and rural areas and how the taxation arrangements for Working Holiday Maker visa holders potentially affect industries such as agriculture and tourism,” Ms O’Dwyer stated. ”The Government recognises that working holiday makers are an important source of labour in Australia and the ‘Review of 417 and 462 Visa Labour’ will ensure our labour supply is adequate and Australia remains competitive globally.”

”As a result, a re-elected Turnbull Government will undertake a comprehensive review of the broad range of issues affecting the supply of working holiday makers,” she explained further. ”The review will also address issues of labour supply more broadly for the agriculture and tourism sectors.”

She also added that the review is also going to involve a consultation with stakeholders, and that it is going to take into consideration a number of issues like the seasonal labour needs for long and short term agriculture and tourism, regulatory imposts on employers, as well as the possibility to widen the supply of seasonal workers, all the while making sure that priority is given to Australians for job availability.

”The review will also assess Australia’s competitive position in attracting seasonal and temporary labour, including comparative wages and taxation,” Minister O’Dwyer said.

She also stated that the person who is going to be in charge of the review is the Minister for Agriculture and Water Resources through his portfolio agency, and will be consulting with the DIBP, Employment, Regional Development, Treasury, Tourism, and the Prime Minister and Cabinet.

”The ‘Review of 417 and 462 Visa Labour’ will report by mid-October, with agreed changes to take effect from 1 January 2017,” she said.

These are the Terms of Reference:

Kerri Griffiths (0417 617 482) and Sarah Nicholson (0466 522 608) are the media contacts.

417 and 462 Visa labour Review

Terms of Reference

Two of the most vital sources of labour in the country are the holders of the 417 and the 462 visas, and the Australian government recognises that as a fact.

There are issues which have been brought into the Government’s attention regarding the effect of the 2015 Budget measure on the 417 and 462 visa holders’ tax arrangements, and the Government has taken these issues seriously, matters which have been raised by the stakeholders themselves regarding the challenges that the workforce in industries such as tourism and agriculture need to deal with.

The Government is also going to take on an inter-departmental review of the wide range of issues that affect the 417 and 462 Visa labour supply. This review will be able to work on matters regarding labour supply more broadly for the sectors in agriculture and tourism

A process is going to be led by the Minister for Agriculture and Water Resources through his portfolio agency, and will be consulting with the DIBP, Employment, Regional Development, Treasury, Tourism, and the Prime Minister and Cabinet.

By the middle of October of this year, the review would have to report to the Minister for Agriculture and Water Resources, and together with the Ministers involved in the review, they will then provide a joint submission to the Cabinet, giving the necessary recommendations so that the labour issues in the 417 and 462 Visas can finally be addressed.

The major issues which are going to be tackled in the review include the following:

1. The competitive position of the country when it comes to attracting seasonal and temporary foreign labour. This includes:

• comparative wages, conditions, and entitlements
• comparative taxation on earned wages
• comparative superannuation or similar entitlements
• promotional programmes and schemes so workers are given the proper assistance while in Australia
• costs and barriers to entry

2. Regulatory imposts on the employers

3. The exploiting of, and the protections for vulnerable workers. This includes the investigation of illegal practices in labour hiring, as well as not complying with the laws and regulations

4. The capability to match employers with workers who are available to do the job. This would also include the regulatory arrangements related to the labour hire companies’ roles

5. Changes be made to using unpaid or volunteer labour(Willing Workers on Organic Farms, or ‘Woofers’, as examples)

6. The exposure of Australia to changes in economic growth, exchange rates, as well as employment rates in source nations which could have an impact in Australia’s wooing seasonal and temporary labour

7. Short-term and long-term needs in the agricultural and tourism labour sector

8. Policies that would entice Australians who are unemployed, including those who are younger, into taking up work in the agriculture and tourism sectors

9. Opportunities so that the supply of seasonal and temporary foreign workers can increase in the agricultural sector

10. Fair and regular tax treatment among the different classes of those who hold a temporary work Visa.

Source: migrationalliance.com.au