457 visas: more than 10,000 are rorting system, says minister

More than 10,000 foreign workers are rorting the 457 visa system, Immigration Minister Brendan O'Connor declared on Sunday.

He released new figures showing the number of 457-visa holders on low incomes had doubled in the past year – the number of people holding "Accommodation and Food services" visas grew by 99 per cent and the number holding "Retail" visas grew by 75 per cent.

The average wage for accommodation and food workers was $55,000, and the average wage for retail workers was $69,000.

"When we see evidence that something is not right with the program - such as spikes in particular sectors that are out of step with growth in those industries - we must take action to stamp out any rorts," he said.

Advertisement

And for the first time, Mr O'Connor sought to quantify his argument that the system was prone to rorting, saying more than 10,000 people were abusing the scheme.

"Insofar as numbers, I believe that the areas where there's been an illegitimate use of 457s ... is not negligible," Mr O'Connor told Sky News. "I would say it would exceed 10,000."

Mr O'Connor said he he would introduce legislation when Parliament resumes in May to fix the system.

"I've always said there's a combination of reforms; we'd look at administrative, regulatory and legislative," he said.

"I am yet to determine what parts of the reforms would be introduced in legislation but I can assure you we will be looking to legislate."

According to figures released on Sunday, the number of 457 visas had increased by 19 per cent at the end of March compared with the same time last year, although they fell slightly between January and March this year.

Mr O'Connor accused "unscrupulous" employers of hiring foreign workers to avoid training locals.

“The Gillard government believes locals should have the opportunity to get jobs first, with temporary skilled workers employed from overseas only as a last resort,” Mr O'Connor said.

“I am concerned that some unscrupulous employers are seeking to use 457 visas to avoid training local workers – citizens and permanent residents."

Read more: http://www.smh.com.au/opinion/political-news/457-visas-more-than-10000-are-rorting-system-says-minister-20130428-2imcy.html#ixzz2Rit0IMwW

Foreign workers in fraud crackdown

THE Department of Immigration will hand over the records of one million temporary visa holders to the Australian Tax Office to identify fraud and visa rorts, in a massive data-matching operation.

The exercise will target the holders of 27 temporary visa types including skilled “457 visa” workers, students, backpackers and foreign sports people playing in Australian competitions.

Foreign doctors, film industry professionals, seasonal workers, researchers and employees of foreign government agencies will also have their records scrutinised.

The operation coincides with a Gillard government crackdown on the 457 visa sub-class, which it claims is being rorted by employers to deny Australians jobs.

The exercise will analyse records from three financial years, 2011-12, 2012-13, and 2013-14, with preliminary results expected to be available ahead of the September 14 election.

The operation will red flag individuals and employers who are cheating tax and immigration laws.

The agency hopes to identify “new or widespread fraud” and address “identified risks posed by temporary working visa holders and employer sponsors”.

According to the ATO, the names, addresses and other details of visa holders “will be electronically matched and analysed with certain sections of ATO data holdings to identify potential fraud, and other non-compliance with lodgement and payment obligations under taxation law”.

“The ATO may also provide information to assist the Department of Immigration and Citizenship to maintain the integrity of the student and temporary working visa programs.”

Labor argues, with strong backing from the union movement, that temporary 457 visas are being abused by employers to avoid training Australians.

But it has struggled to come up with hard evidence of widespread rorting of the system, sparking claims it is demonising foreign workers for electoral gain.

Immigration Minister Brendan O'Connor said the data-matching exercise would help protect Australian jobs.

“While this is not a specific crackdown, it is another example of the government working to ensure the integrity of the immigration program and to ensure that locals are not missing out on work opportunities to visitors who do not have the correct work rights,” he said.

Mr O'Connor has previously highlighted a spike in 457 visa approvals, at a time of rising unemployment, as evidence that the system must be overhauled.

He says the fact that the biggest growth in 457 visas has been in Tasmania, South Australia and NSW, rather than the big mining states, is also evidence that the program is not working in the interests of Australian workers.

Tony Abbott has defended the system, accusing the government of attacking the system it has presided over for more than five years to divert attention from its border protection failures.

Source:http://www.theaustralian.com.au/national-affairs/foreign-workers-in-fraud-crackdown/story-fn59niix-1226629266867