Money For Lunch – 457 Changes to Fast Food Industry and Growth of 188 Investment Visas

457 Changes to Fast Food Industry and Growth of 188 Investment Visas

June 5, 2017 2:07 PM0 commentsViews: 9

 

During the last 6 months of volatility within public policy surrounding 457 visas, the Australian Federal Government has decided to crack down on the number of 457 skilled worker visas handed out to McDonald’s, Hungry Jack’s and other fast-food chains. According to reports, McDonald’s, Hungry Jack’s and KFC will no longer be able to sponsor foreign workers on sponsored visas to work at their fast-food outlets.

Minister for Immigration and Border Protection Peter Dutton is reportedly ending a former Labor Government deal that provided major fast food outlets the opportunity to import foreign staff on 457 visas.

“Every Australian teenager should have the chance to get a job at the local shops,” Mr Dutton said.

The fast-food outlets will be barred from sponsoring foreign workers on 457 visas, which are used to fill temporary skill shortages in the workplace. Mr Dutton said it was an important move to ensure young Australians could gain access to employment.

Workers affected by the move will be forced to leave Australia once their agreements run out, unless the employer is able to provide a valid reason as to why they should be able to remain in Australia.

This is the first time in Australia that an entire sector has been banned from using the 457 visas. Statistics revealed more than 500 457 skilled visas have been approved in the last four years, with McDonald’s bringing in a total of 285 foreign workers, KFC 88 and Hungry Jacks just over 70.

These changes to the 457 visas are a retrograde step, which will increase the vulnerability of foreign workers.

On the contrary of 457 visas, the Australian Government has seen a steady increase in 188 visas (a form of investment visa). In late 2012, the government opened the door to millionaire migrants a bit wider by introducing a new temporary visa pathway – the business innovation and investment visa (188) – for immigrant investors.

The subclass 188 business and investment visas are temporary residence visas (4 years). You will need to meet specified requirements according to your stream and apply for the Business Innovation and Investment (Permanent) visa (subclass 888) to obtain permanent residence.

The attraction for potentially wealthy immigrants is that the age and English-language ability requirements are more relaxed than under the business talent (permanent) visa for immigrant entrepreneurs. From November 2012 to March 2015, 751 significant investor visas were granted, 89% of these to Chinese immigrants. Between 1 July 2016 to 28 February 2017 the majority of the 253 invest visas granted, were situated within two States, Victoria (139) NSW (45).[1]

To qualify for a 188 visa, an applicant must have managed investments or owned a business, and to be willing to invest $AUD 1.5 million in Australian State or Territory Government bonds. Specific criteria include:

  • Have had business and personal net assets of at least $AUD 2.25 million for the last 2 fiscal years
  • Under 55 years of age, unless the nominating state or territory certifies that you will make an exceptional economic benefit; and
  • Meet the pass mark in the Business Innovation and Investment Points test (currently 65);
  • Must make an investment of AUD 1.5 million in Australian State or Territory bonds prior to grant of the visa
  • Have 3 years of experience either managing a qualifying business or “eligible investments”, and have showed a high level of management skill; and
  • For at least 1 of the last 5 fiscal years, you have either:
    • Managed a business in which you hold a 10% shareholding; or
    • Managed “eligible investments” of at least AUD 1.5 million

If you, or someone you know would like to know more about current visa options or discuss eligibility please visit us at https://www.resultsmigration.com.au/ or book an obligation free appointment by calling 1800 808 717 today! Results Migration Lawyers, helping you secure your Australian dream.

[1] Department of Immigration and Boarder Protection (2017), Significant Investor Statistics.

 

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