Australian Government

19 September 2019

Committee SecretaryJoint Standing Committee on Migration

Box 6021Parliament HouseCanberra ACT 2600

via email: migration@aph.gov.au

AustralianSmall Business andFamily EnterpriseOmbudsman

The Committee Secretary

Inquiry into migration in regional Australia

The Australian Small Business and Family Enterprise Ombudsman welcomes the opportunity toprovide comments to the Joint Standing Committee on Migration on migrant settlement strategiesand settings in regional Australia and in particular, access to the skilled migration system for smalland family businesses.

The current suite of permanent and temporary skills visa streams can assist small and familybusinesses preparing for future skills needs and where new jobs have a longer tenure. However,these visa streams rarely solve short−term job challenges (where a worker is needed for a period ofunder 12 months), nor make it any easier where there is immediate needs for skilled workers.

The application process for many visas is cumbersome and onerous. Theapplication processing times are, in many cases, so long that small businesses miss opportunitiessuch as tendering for contracts under infrastructure projects or resources development projects dueto their inability to access skills and labour. Details of our key concerns with select visa streams andskills lists applicable to regional small and family businesses is attached.

For a skilled migration system to address the needs of small and family businesses in regionalAustralia, there needs to be streamlined application processes that reduce the bureaucratic burdenon small businesses. Additionally, long processing times mean that by the time an application hasbeen approved, the need for the skilled worker may have passed. This constrains economicdevelopment in regional Australia and prevents small and family businesses from growing.

Thank you for the opportunity to comment. If you would like to discuss this matter further, pleasecontact Stephen Bolton on 02 6121 3639 or at stephen.bolton@asbfeo.gov.au.

Yours sincerely

Kate Carnell AOAustralian Small Business and Family Enterprise Ombudsman

T 1300 650 460 E

of the Australian Small Business and Family Enterprise OmbudsmanGPO Box 1791, Canberra City ACT 2601

Attachment A — Select visa streams applicable to regional small business

Visa Stream ASBFEO Comments

Regional SponsoredMigration Scheme(RSMS) (subclass 187)

The process for applying for an RSMS is onerous and time consuming forsmall business and needs to be streamlined. An application mustcurrently include:

o Regional Certifying Body assessment outcomes;o Final employment contract;o Business registration documents and financial audits (including 12

months of BAS for start−ups);

o Proof the business needs a paid employee; such as an organisationalchart, the ANZSCO code for the occupation, labour market testingand evidence that the position is a genuine vacancy; and

o Proof of payment of "market salary".Processing times noted on Home Affairs website indicate that 90% ofRSMS applications are finalised within 25 months.

Designated AreaMigration Agreement(DAMA)

The Labour Agreement application process under a DAMA is onerous anddifficult for small businesses to access. The six month assessment andapproval processes represent a major barrier to small businesses whoare, in many cases, responsive to immediate market demand and don'tnecessarily have the resources or knowledge to apply for LabourAgreements under a DAMA.

Skilled Work Regional(Provisional) (subclass491)

The new Skilled Work Regional (Provisional) (subclass 491) visa inNovember 2019 (replacing the subclass 498) does not have directemployer sponsorship and relies on applicant nomination by either theState or Territory Government or an eligible family member residing in adesignated regional area.

Whilst the new Subclass 491 visa stream will assist in building theavailable pool of labour in regional Australia, it does not assist smallbusinesses in meeting immediate skills needs. Application processingtimes for the current Subclass 489 are up to 15 months and are indicativeof likely processing times for the new Subclass 491 visa.

Temporary SkillShortage Visa (TSS)(Subclass 482)

Applications for TSS visa are limited to occupations on the Short−termSkilled Occupation List (STSOL) which are, in most part, higher level skilledoccupations. Occupations below ANZSCO level 3 (with some exceptionssuch as skilled meat workers) are not eligible under the Subclass 482 Visa.Applicants are generally able to stay in Australia for up to two years.

90% of applications are processed within 56 days.

Regional Skills Lists The Regional Occupations List (ROL) and RSMS lists are too narrow in theoccupations listed and updated too infrequently There is a need torecognise the full gamut of occupations in demand, especially by smalland family businesses in regional Australia and more regularly assessskills shortages in regional areas.

Office of the Australian Small Business and Family Enterprise Ombudsman