Visa Simplification: Transforming AustraliatsVisa System.INTRODUCTION

The Northern Territory Department of Trade, Business and lnnovation (DTBI) welcomesthe opportunity to provide input into the consultations on the Department of lmmigrationand Border Protection's Visa Simplification: Transforming Australia's Visa System project.This submission has been prepared at officer level and articulates the views of the DTBIon skilled migration and temporary visas with input from officers of the Office ofMulticultural Affairs of the Department of Territory Families and Non-GovernmentOrganisations in the Northern Territory in relation to humanitarian and family visas. Thissubmission:

o Provides commentary on the key statements articulated in the Policy ConsultationPaper

. Responds to the questions posed in the Paper by the Department of lmmigrationand Border Protection (DIBP),

o Highlights the need for Australia's visa system to be sensitive to the differing needsof the whole of Australia.

RESPONSE TO POLICY CONSULTATION PAPER

Key statements

o The Government maintains the sovereign right determine who comes to Australia. Complex visa systems are expensive to maintain and difficult to navigateo Australia's visa system must support national, economic, social and security

interests

While DTBI accepts these principles, it believes Australia's visa system must serve thewhole of Australia and this includes the economic and social needs of regional Australia.This means a key consideration in transforming Australia's visa system must beembedding effective mechanisms to disperse skilled migrants away from Australia'seastern seaboard and major metropolitan centres. Such a system will maximise thebenefits to our nation while lessening pressure on infrastructure and services in the morepopulous centres of Australia.

For decades many areas of regional Australia have been grappling to address issues thathave emerged with urbanisation. At the same time Australia's more populous migrantsettlement destinations have struggled to maintain urban amenity and address thepressures that rapid population growth places on physical and social infrastructure. lt is inthe national interest for this visa transformation project to deliver a system that encouragesoverseas migrants to settle in regional areas.

Attraction of skilled workers in the international environment is highly competitive withdemand intensifying as more countries face skilled labour shortages as a result of low birthrates, ageing populations and mobility of their citízens.

Quesfions

c What would a system with approximately 10 visas look like?o What factors should we consider when símplifying the visa system?o What should be the key characferisfics of a simplified and flexible visa system?

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Visa Simplification: Transforming Australiats Visa System.

The current complex visa system has evolved through repeated legislative amendmentsnot only to reflect Australia's changing needs but also to address issues that have arisen inthe system that were considered to be neither in Australia's national interest nor accordwith the intent of the legislation at the time it was drafted.

DTBI believes that thís visa transformation project should be informed by the experienceand knowledge gained in the evolution of Australía's current system as well as theexperiences of other like nations in the development of their visa systems e.g. Canada,New Zealand and the United Kingdom.

While automation/artificial intelligence will be essential if the efficiencies sought are to beachieved, system failures and computer hacking activities that have brought governmentand private sector operations to a standstill in a multitude of countries pose risks to anycomputer based system. There are significant financial drivers for rogue informationtechnology experts to hack commercial and government systems. For a visa system theseactivities not only pose a substantial business continuity risk but also, with the level ofpersonal and identity information collected, substantial opportunity for identity theft andfraud. This means that in order to protect the nation's interests it is critical for safeguardsand compliance measures to be primary elements in Australia's transformed visa system.

DTBI does not believe that the objective of the visa simplification project will be well servedby working to a predetermined number of visa subclasses. Determination of the idealnumber of visa subclasses should only be established by building a system which logicallyand effectively combines current visas which exhibit similar characteristics. lmportantly,the pitfalls of earlier simplification projects that reduced the number of visa subclasses butadded significant end user complexities must be avoided.

DTBI's approach to the questions posed is based on an assumption that the visatransformation project, while focused on reducing the number of visa subclasses andsystem complexity, will continue to facilitate the entry of overseas visitors and migrantsalong similar lines as the current system. This means family reunion, humanitarian andthe economic visa streams and temporary and permanent visas will be retained.

Currently visas facilitate entry of visitors and international students on a temporary basisfor varying period of times. These visas are uncapped, the eligibility criteria are clearlydefined, applicants can be drawn from anywhere in the world, the visas are granted forfinite periods of time and both feed industry sectors which are delivering increasingeconomic benefits to Australia. lt is this group of visas that are likely to experience thegreatest growth in future years. For this reason DTBI believes that the initial focus of thisprolect should be on transforming these visa processes so that benefits to Australia fromthese visa flows are maximised.

The temporary activity visas, working holiday visa and the soon to be introducedTemporary Skill Shortages visa may offer potential to further reduce the number of visasubclasses. These visas share a number of characteristics, many are demand driven fromwithin Australia and each has a clearly defined economic or social purpose.

The Australian Government controls annual intakes of all permanent visa categories, withthe exception of visa for the reunion of spouses and dependent children of Australianresidents. The controls are imposed either through annual planning levels or visa numbercaps. lt is understood that these controls are in place to ensure the program serves theinterests of the nation and therefore it is assumed that these controls will remain in placeand, may be further strengthened. This suggests, unlike tourist and international studentvisas, the Australian Government can predict and control the demand for and growth in

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Visa Simplification: Transforming Australiats Visa System.

applications for permanent visas. Therefore, mechanisms are already in place that couldrelieve the pressures that these visa cohorts place on available resources.

DTBI considers permanent employer sponsored visas essential ín Australia's futureeconomic growth and social infrastructure. Again in this visa cohort emphasis must beplaced on ensuring the needs of employers in regional Australia are met.

Further consolidation of the General Skilled Migration (GSM) Program visas could beconsidered. GSM should not be viewed as a mechanism to grow population but ratherfocused on addressing Australia's workforce needs and diversifying the available pool ofskilled workers where there is demand for those skills. To maximise benefits that accrueto Australia, the GSM visa settings much encourage migration to areas of lowunemployment and skills demands. Under the current visa system the majority of GSMvisa applicants enter as independent applicants and choose their settlement location. Thismeans there are no linkages between the demands for skills and where this large cohort ofmigrants settle.

A well targeted visa category to facilitate the entry of entrepreneurs and investor toAustralia must also feature in Australia's simplified visa system. However, in order to fullyserve the nation's interests and to deliver increased economic benefits further emphasismust be placed on better dispersal of business migrants into regional areas of Australia.

The characteristics of applicants for family visas are clearly defined through close familyrelationships and therefore potential exists to consolidate the existing visa subclasses.

It is recognised that there is a need for the Australian Government to achieve efficienciesand reduce the level of resources required to admínister its visa system. However, ifinternal needs and demands are the singular or primary focus, the resultant visa system isunlikely to deliver the long term outcomes that are sought. DTBI believes that one of thekey characteristics for a simplified and flexible visa system must be an end user focus anda positive end user experience.

Key statements

o Temporary visas are for specific, short-term activities (i.e. visit, study, temporaryskilled work) only

o Temporary visa holders do not have an automatic right to permanent residenceo Permanent visas allow for the stay of persons whose long-term residence in

Australia will benefit the Australian community.

Quesfions

o What distinctions should apply to temporary and permanent vísas?c What requirements should underpin a migrant's eligibility for permanent residence?o Should a prospective migrant spend a period of time in Australia before becoming

eligible for permanent residence? What factors should be considered?

The length of processing times, defined periods of stay, and eligibility to accessgovernment services are the primary differences between temporary and permanent visas.

However, as many temporary visa holders have work rights and contribute to Australia'staxation base through PAYE taxation in a similar manner to permanent residents andAustralian citizens appropriate access to government services is justifiable.

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Permanent residence eligibility should be determined based on social and economicneeds of the whole of Australia, including the needs of small jurisdictions like the NorthernTerritory. This cannot be achieved through a one size fits all visa system.

The current temporary skilled employer sponsored visas, working holiday visas and visasthat facilitate the entry of international students to complete studies in Australia allowemployers to access the skills of overseas workers on a temporary basis and to determinehow well their skills and personal attributes fit with the organisation before they make apermanent employment commitment.

The onshore permanent residence pathways embedded in Australia's current visa systemhave served Northern Territory employers well. DTBI believes permanent residencepathways for temporary visa holders should be retaíned in Australia's future visa system.

Careful consideration will need to be given to the potential impacts of mandating a periodof temporary or provisional residence for all visa holders before they become eligible forpermanent residence.

As highlighted above even though many temporary and provisional visa holders paysimilar taxation levels to that paid by permanent residents and Australia citizens, they haveno access to Australian Government services such as Medicare, child care support ordomestic violence services. ln addition, holders of temporary and provisional visas facethe additional settlement barrier in accessing affordable finance for key family purchasessuch as vehicles and residential property.

ln the current globally competitive market mandating a temporary residency period in orderto qualify for permanent residence has the potential to reduce Australia's attractiveness asa skilled migration destínation. lt also has the potential to impact the quality of the skilledoverseas citizens who seek to enter and work in Australia. These impacts will adverselyaffect Australia as a whole but will be magnified in regional areas of the nation and smalljurisdictions like the Northern Territory.

A change to the profíle of Australia's skilled migrant cohort is further potential impact ofmandating a period of temporary/provisional residence. The settlement uncertainty andcosts that this approach would introduce is likely act as a deterrent to families andsignificantly skew the migrant composition to single applicants.

Young single skilled migrants are a desirable cohort ín the migration system as theirpotentialfinancial contribution to Australia's taxation base is considerable. However, giventhe propensity of migrants from many of Australia's key source countries to marry fromtheir countries of birth, were this cohort to dominate Australia's permanent migrationintake, it is likely to place further pressure on the already stretched family reunion visaprograms.

DTBI believes that broad and critical consideration needs to be given to how any changesproposed will impact on Australia's competitiveness in the global skilled/business migrationmarket. This must be done with reference not only to the visa systems of Australia's keycompetitors such as New Zealand and Canada but also to visa systems being put in placeby emerging competitors such as countries in the European Union.

Further DTBI considers it vital for a careful analysis to be undertaken of all proposedchanges and the impacts on all elements of the visa system evaluated. Such an approachwill potentially identify and minimise any unintended consequences.

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Key statements

Tourism, temporary migration and permanent migration benefit Australiaeconomically and sociallyRemaining an attractive destination for the migrants we want is important forAustralia's futureAustralia's visa system should be efficient in facilitating the entry of genuinetravellers

DTBI agrees with the key statements above. However, the economic and social benefitsachieved would be increased if the visa system was sufficiently flexible to adequatelyserye the temporary and permanent migration needs of regional Australia.

Quesfions

c What role does the visa sysfem play in ensuring Australia remains attractive to thebest and brightest temporary and permanent migrants?

. Do you think an efficient visa sysfem that is simple to understand and quicklyassesses risk will make Australia a more attractive destination? Why?

. To what extent should the Government collect biometrics from visa applícants?

The efficiency and responsiveness of a visa system is likely to be more significant inensuring Australia remains attractive to the short term temporary visa cohort such astourists.

While the efficiency of country's visa system is important, it will play a lesser role in thedecision making processes of longer term temporary and permanent skilled migrants. Thiscohort will consider a far wider range of factors when choosing the country in which theywill work or to which they will migrate. Considerations are wide ranging and longer termand include matters such as a country's socialfabric and its infrastructure, the education,professional and lifestyle opportunities offered to applicants and their families as well aseconomic opportunities, government stability and security.

DTBI believes that Australia's visa system will enhance Australia's attractiveness where itcontinues to provide permanent migration opportunities to eligible temporary visaholders/temporary skilled workers beyond their initial visas.

Recent research suggests that Australia's visa system heavily influences the decisionmaking processes for many international students. While the quality of the educationoffered and the reputation of universities and colleges are major influences forinternational students, factors such as opportunities to augment finances through visaswith work rights, post qualification work experience opportunities and possible longer termwork and migration opportunities for those candidate who meet eligibility criteria canpositively influence overseas students decisions of study locations.

The attractiveness of Australia as a temporary migration destination will also be enhancedwhere the visa system continues to offer eligible temporary visa holders longer term workand migration opportunities beyond their first visas.

The White Paper on Developíng Northern Australia places a focus on the region'sopportunities and highlights workforce growth as a significant threat to the continuedeconomic growth of the northern Australian region. This paper provides a contemporaryand comprehensive assessment of the northern Australian economic landscape and

o

o

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identifies key workforce challenges. A key priority identified in the Australian Government'sWhite Paper on Developing Northern Australia is the need to 'build a sustainableworkforce in the north.' lf this vision for Australia's north is to be realised, Australia's visasystem must support and complement this priority.

Of vital importance to the Northern Territory is a visa system that supports all areas ofAustralia securing the workforce, investment and business capacity needed. Such asystem will support Australia's future economic grovuth and facilitate diversification ofservices and products in regional Australia.

Experience suggests that information on changes to Australia's visas introducesuncertainty to the market and the lead time for dísseminating this information can belengthy. Provision of accurate, user friendly, readily accessible information on visa systemchanges should be a key consideration in all change processes and phases.

DTBI also considers a supportive, end user friendly business model to implement andembed Australia's new visa system will be crucial. Embedded portals forbusinesses/employers, rapid response help lines, robust on-line application systems andalternative application options are all elements that must be given consideration.

With the uncertainties and risks that exist in today's world to serve the nation wellAustralia's visa system must embrace and embed all acceptable risk mitigation andsecurity checks. DTBI considers the collection of biometrics an important element inensuring the identities of visa applicants as well as facilitating the efficient processing ofvisa holders entries and exits to and from Australia.

CONCLUSION

ln formulating this Visa Simplification: Transforming Australia's Visa System, PolicyConsultation Paper submission DTBI has made the assumption that in a simplified visasystem the humanitarian, family and economic visa/migration streams would be retained.

DTBI considers that one of the primary focuses in the transformation of Australia's visasystem should be achieving a system that seryes the economic and social needs whole ofAustralia including those of regional Australia.

ln the view of DTBI working to a predetermined number of visas is unlikely to achieve anoptimal outcome. The visa transformation process and determination of the number ofvisas should be informed by experience in the evolution of Australia's current system andthe experiences of other nations with similar visa arrangements to those of Australia. Adecision on the final number of visas must be informed through research and evaluation ofwhat best will meet Australia's needs.

While it is acknowledged automation/artificial intelligence will be central to achievingefficiencies, adoption of leading edge solutions will introduce global risks that will requiredetailed attention, creative solutions and careful monítoring and management to ensureintegrity is maintained in Australia's transformed visa system and that it delivers thedesired visa/migration outcomes for the nation.

ln the view of DTBI factoring in perspectives of end-users will be essential in achieving asimplified visa system. Simplification must include ease of access, use andcomprehension. Approaching the project solely from the agency managemenVefficiencyperspectives is unlikely to deliver the outcome sought.

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