4.1
There are a variety of different factors that contribute to Australia’s attractiveness and international standing amongst our competitor countries. Indicators of Australia’s success include:
The Organisation for Economic Co-operation and Development’s (OECD) 2019 ‘Indicators of Talent Attractiveness’ ranked Australia first in a pool of countries internationally, which also assessed countries’ strengths and weaknesses in their ability to attract and retain skilled workers with higher education qualifications – particularly masters or doctoral certifications.
In the 2020 ‘Global Talent Competitiveness Index’, written by the Business School for the World (INSEAD), the Adecco Group and Google Inc, ranked Australia 10th behind Switzerland (first), the United States (second), Singapore (third) – moving up two rankings from the previous 2019 Index.
The World Bank’s 2020 ‘Ease of Doing Business’ rankings, Australia ranked 14th, moving up four rankings from the previous year. Further, Australia ranks:
Fifth globally for doing business in countries with a population exceeding 20 million;
Seventh for starting a business; and
Fourth for gaining credit.
In the 2020 ‘World Happiness Report’ by John F. Helliwell, Richard Layard, Jeffrey D. Sachs and Jan-Emmanuel De Neve, Australia was ranked the 12th happiest country globally.
4.2
When attracting global talent to Australia, it is important to note that the structure of the labour market is undergoing change as a result of the increased globalisation and digitalisation of the world.
4.3
Given the constant changes within the structure of the labour market, countries other than Australia are taking different approaches to target different talent pools, in efforts to attract global talents and to address skills needs or gaps in their national economies. As such, the Committee received several submissions that drew on other countries’ experiences in attracting talent, recommending ways through which Australia’s recruitment efforts could be further improved if we were to adopt the ideas and processes from other countries.
4.4
Among the comparative countries are the United States (US), Canada, New Zealand, the Netherlands, Finland and Singapore, all in which have different ways of targeting talents:
The US has what is referred to as the ‘EB-5 Immigrant Investor Program’, which targets investors globally to help grow the national economy by way of creating jobs and promoting capital investment which requires overseas investors to invest in a new commercial entity or enterprise.
Canada has a structured and comprehensive Global Talent Stream, where a skilled migrant is required to be sponsored by an employer, referred to by a recognised partner, and in addition to having a career profession listed on Canada’s occupation list. Although the pathway is only temporary, applicants will receive priority processing.
The Netherlands provides what is referred to as the ‘shopfront-type’ Government services to help applicants with their settlement services, broadly including access to education and healthcare. Additionally, the Netherlands attract talents by producing positive incentives and lower taxes.
Finland has a robust settlement network dedicated for skilled migrants although, in comparison to the Netherlands, provides incentives other than financial ones to their talent program. These include giving migrants and talents access to educational services – including international schools – and English-speaking childcare. Finland therefore targets global talents with a higher age demographic and applicants with families.
Singapore’s recruitment program is broken down into three distinct categories, targeting:
Foreign professionals and;
High-earning professionals.
All three visa options have a pathway to permanency in Singapore.
Australia’s approach
4.5
The Australian Government recognises the importance of attracting global talents and the brightest skilled migrants as it relates to facilitating economic growth and ensuring a more prosperous Australia. To help achieve this aim, in 2018 Home Affairs instituted three programs to bolster Australia’s capacity and capability to attract these migrants:
The Global Talent Employer Sponsored (GTES) program pilot – [which] provides established and start-up businesses with a streamlined process to sponsor overseas workers with niche or cutting edge skills, where vacancies cannot be filled by Australians or through other visa programs
The Supporting Innovation in South Australia (SISA) pilot – [which] is a collaborative effort between the South Australian Government, Commonwealth Government and members of the South Australian Innovation Ecosystem that is designed to attract foreign entrepreneurs who will develop innovative ideas and launch start-ups in South Australia
The Global Talent Independent (GTI) program – designed to identify and attract high calibre migrants with cutting edge skills in one of ten target sectors.
4.6
All three talent-related visa programs complement several pre-existing programs that provide additional pathways for pooling global talent. Of the complementary programs include the Business Innovation and Investment Program (BIIP) and the Distinguished Talent program.
Attracting entrepreneurs and start-ups
4.7
Australia has a series of visa programs to support entrepreneurs during the start-up (emergence), scaling (expansion) and maturity phases of the business process.
4.8
For the start-up (emergence) stage of businesses, the SISA pilot is a temporary program tailored to attract overseas entrepreneurs who are innovative, and can share their ideas by launching a start-up in South Australia.
4.9
After the SISA pilot was reviewed, other jurisdictions outside of South Australia supported implementing a new program which focused on the ongoing aspect rather than the temporary. The SISA pilot is due to finish in November 2021 and will be superseded by the new ongoing Entrepreneur Stream of BIIP in July 2021.
4.10
The Entrepreneur Stream will remove the $200,000 funding requirement from the SISA pilot instead requiring applicants to either be endorsed or nominated by a state or territory government. Participation in the Entrepreneur Stream of the BIIP will ensure a pathway to permanent residency in Australia.
4.11
For the scaling (expansion) stage of businesses, the Australian Government instituted the GTES pilot in July 2018, which was co-created with a variety of different stakeholders ranging from state and territory governments to an Industry Advisory Group.
4.12
The purpose of the GTES pilot is to draw on individuals who are highly skilled and specialised in niche occupations who can contribute to Australia’s start-up ecosystem by creating jobs, promoting new ideas and bringing in new technologies. This program is also regarded as a ‘job multiplier’ for businesses in Australia, as it assists them to recruit more domestic workers and to in turn fill much needed occupations. It is important that businesses who wish to participate in the GTES pilot will strongly support job opportunities and skills development for Australians.
4.13
Within the GTES pilot, there are two distinct streams: the start-ups and established business. The start-up stream of the GTES pilot is tailored specifically to businesses that operate within the STEM and technology-based fields, and are required to be endorsed by the Start-up Advisory Panel. Start-ups will also receive the opportunity to source overseas talent to expand the scale of their business by way of a streamlined labour agreement in instances where Australian workers are unable to fill critical occupations.
4.14
For the maturity stage of businesses, the GTI pilot is tailored towards individuals who have demonstrated outstanding success at starting-up and commercialising their business in Australia or those who have addressed the needs and activities of Home Affairs’ Global Business and Talent Attraction Taskforce.
Attracting migrants with cutting-edge skills
4.15
The GTI program places significant emphasis on attracting the best and brightest skilled migrants of the highest calibre with specialised, niche skillsets who are able to make significant contributions entrepreneurially to Australia’s critical sectors. There are three core features embedded within the GTI pilot which are intended to provide incentive for talents to come to Australia:
The process and pathway to permanent residency in Australia is expedited for individuals who are of the highest cohort in one of the ten critical industries: Agri-food and AgTech; Energy; Defence; Advanced Manufacturing and Space, Resources, Financial Services and FinTech; Circular Economy; DigiTech, Infrastructure and Tourism; and Education.
There is flexibility within the program to immediately address the specific needs and occupational requirements of Australia’s economy. Individuals are required show that they are of the highest achievers within their niche cohorts, have an exceptional business record and prove that they are able to earn a salary above the Fair Work High Income Threshold.
The emergence of the Global Talent Officer role at Home Affairs will assist in reaching out to global talents by collaborating with world-renowned universities, and professional businesses and organisations to recruit talented and skilled individuals to Australia.
4.16
Since the commencement of the GTI pilot, individuals and applicants that have high educational backgrounds found the program relatively attractive, with 77 per cent of program visa holders granted after previously having a temporary visa.
4.17
The Australian Government instituted the Global Business and Talent Attraction Taskforce in September 2020. The Taskforce is designed to attract individuals and businesses that have the ability to influence Australia’s national economy on a large-scale , creating jobs and instilling growth.
4.18
The Global Business and Talent Attraction Taskforce is led by the Prime Minister’s Special Envoy, Mr Peter Verwer AO, who is in charge of coordinating a concerted national effort, involving Home Affairs, the Australian Trade and Investment Commission, governments of all levels and the private sector. The Taskforce offers end-to-end services, expedited pathways to permanency, bespoke guidance on travelling and relocation within Australia and industry-specific networks.
4.19
Home Affairs indicated a number of adjustments that have been made to various visa categories to enhance Australia’s international attractiveness to business and individuals with outstanding talent:
The Distinguished Talent visa was simplified by consolidating two visa subclasses, with a single visa (subclass 858) available for visa applicants who are located inside or outside of Australia
Visa eligibility was simplified and more applicants are now eligible to apply for a subclass 858 visa in Australia
Flexibility was introduced with changes to the health requirement, where in limited circumstances, visa applicants were able to apply for a health waiver
To ensure consistency of public messaging about the intent of the Global Talent Independent program and the Taskforce, the Distinguished Talent visa was renamed the Global Talent visa on 27 February 2021
The ability for the Taskforce to directly nominate suitable exceptionally talented candidates who will make a significant contribution to the Australian economy to apply for a Global Talent visa was introduced
Introduction of a temporary work visa option to facilitate the rapid temporary deployment (up to 18 months) of critically skilled staff to Australia to establish a ‘beach-head’ for their business relocation.
4.20
When deciding the eligibility of businesses to operate in Australia, Home Affairs assesses the relative impact of businesses and individuals to creating jobs, safeguarding Australia’s supply chain resilience and ensuring economic prosperity in critical sectors. If these criteria are fulfilled, the Taskforce will prioritise businesses and individuals accordingly. Home Affairs state that:
Examples of the high value contributions a business would offer include; through access to new and exceptional intellectual property (IP)/technology, building resilience and critical ecosystems, filling skills or supply chain gaps, or relocating regional headquarters (or part thereof) to Australia.
4.21
Another program instituted by the Australian Government to attract talent and capital is through the Distinguished Talent program, which is tailored specifically to attracting exceptional talents within the fields of sports, academia, professions and the arts. Individuals in these categories must show a record of international-level success and recognition in the field in which they show expertise, and must be nominated by an individual or organisation with a national reputation in that particular field.
4.22
Further, Home Affairs undertakes assessments on eligible individuals of the Distinguished Talent program to prove that they will be an asset to the Australian community, culturally, economically or socially and raising Australia’s international standards in either the academic, artistic or sporting arenas.
4.23
Another way through which the Australian Government seeks to attract talent and capital is through a point-tested skilled visa program, which applies to the Skilled Independent visa (subclass 189), the Skilled Nominated visa (subclass 190) and the Skilled Work Regional (Provisional) visa (subclass 491).
4.24
The point-tested system awards individuals points in based on age, skills and attributes, English proficiency, education and qualifications, length/location of skilled work experience, foreign language proficiency including the various skills of their partner.
4.25
Should prospective skilled migrants wish to apply for a point-tested visa they must lodge a formal Expression of Interest (EOI) in the SkillSelect portal, and receive a subsequent invitation on the condition that, according to Home Affairs:
For the Skilled Independent visa, invitations are issued to the highest scoring EOIs with a score at or above the passmark (currently set at 65 points), allowing Australia to prioritise and select skilled migrants who have the highest human capital and can best meet Australia’s economic and social needs
For state and territory nominated visas, each jurisdiction can choose which prospective migrants they wish to nominate, as long as they meet the minimum passmark of the points test. This allows each jurisdiction to nominate suitable prospective migrants who can best address their local and regional skills needs through their own nomination criteria.
4.26
From November 2019, Home Affairs allocated an extra five points for individuals with a postgraduate research qualification within STEM or ICT-related subjects at a recognised Australian higher education institution. The purpose of these additional points is to meet the various skills gaps in the Australian economy attributed to the changes to the nature of work, and to bolster Australia’s productivity and innovation.
Attracting venture capital
4.27
Australia’s BIIP targets migrants with a demonstrated history of outstanding success or talent in the business sector, and are able to advance Australia’s national innovation and economic ecosystems.
4.28
Under the Business Innovation and Investment (Provisional) visa (Subclass 188) in the Significant Investor category, eligible individuals are required to invest $5 million in Australia in accordance with the Complying Investment Framework (CIF) throughout their provisional visa period (minimum of four years) in order to be eligible to successfully transition to a permanent status (Subclass 888).
4.29
The CIF was introduced on 1 July 2015, in which the Significant Investor visa (SIV) holders are required to invest a minimum of $500,000 in accredited Australia venture capital or growth private equity funds, which is injected to supporting start-ups and small private companies. Home Affairs provides a table of SIVs granted and new SIV investments into venture capital funds from the commencement year of 2015 until 31 January 2021 as shown below:
Table 4.1: Significant Investment Visa Statistics
|
|
|
|
|
2015-16
|
884
|
442 million
|
|
2016-17
|
624
|
312 million
|
|
2017-18
|
300
|
150 million
|
|
2018-19
|
318
|
159 million
|
|
2019-20
|
318
|
159 million
|
|
2020-21 to 31/1/2021
|
345
|
172.5 million
|
|
Total
|
2,789
|
1.3945 billion
|
Source: The Department of Home Affairs, Submission 16.1, p. 12.
4.30
Additionally, SIV holders are also required to invest at least $1.5 million in eligible managed funds or Listed Investment Companies (LICs) that direct their investments to start-ups and emerging businesses, and up to $3 million in managed funds or LICs that invest in assets, Australian securities, corporate bonds or notes, annuities and real property.
4.31
Home Affairs suggests that Australia’s BIIP is successful in attracting businesses and overseas investors, and the demand for BIIP outweighs the number of visas available:
As at 31 January 2021, there were 28,454 onhand BIIP visa applications (primary and secondary), and the visa planning level for the BIIP in 2021-21 is 13,500 places.
4.32
Every year, Commonwealth, State and Territory Governments determine the allocation of BIIP visa placements and nominations for each state jurisdiction. Ultimately each state is able to decide on how many prospective migrants they wish to source under BIIP predicated on their local, regional and investment needs.
Issues raised in evidence
4.33
The Committee received evidence from a range of individuals and organisations.
4.34
The contribution of skilled migrants to founding major new economy business around the world was highlighted. The South Australian Department of Innovation and Skills noted that in both the UK and US, skilled migrants had a founding role or were co-founders of start-ups, engineering and technology firms and fast growing companies.
4.35
The opportunity presented for Australia by the COVID-19 pandemic recovery period was highlighted by Mr Verwer, who suggested:
The current phase of the pandemic provides an exceptional window to reframe global perceptions about Australia as a place to live and to do business—that is, to reframe Australia as a nation with compelling strategies to invest in the industries of the future and to build long-term prosperity.
Impact of Australia’s response to COVID-19
4.36
Mr Verwer further noted that this is a ‘moment in time’ and ‘… assume that the moment isn’t longer than a year’, reinforcing that Australia needs to act now.
4.37
Australia is not the only country which is targeting highly skilled entrepreneurs and investors. The Migration Institute of Australia noted that there are a range of countries which have visas which are aimed at attracting investors, entrepreneurs and ‘the best and brightest skilled migrants’.
4.38
Despite Australia’s excellent response to the COVID-19 pandemic, the travel restriction policies, a feature of Australia’s COVID-19 pandemic response, has made Australia a more difficult destination for migrants to choose.
4.39
These travel restriction policies, such as international border closures, while helping to ensure the safety of Australians have also had a significant effect on businesses. Business NSW indicated:
Other nations’ attractiveness has likely increased due to not having closed international bordered and having had a faster vaccine rollout that Australia. … Other countries are now making a concerted effort to issue more visas and make it easier to migrate to those countries—such as through the yet-to-be legislated US Citizenship Act 2021.
4.40
In the post COVID-19 pandemic recovery phase there is going to be significant global competition for capital. Australia has the opportunity to attract more capital. However, Australian start-ups face a significant risk if access to skills, capital, export markets and global ideas are diminished and barriers which could deter overseas entrepreneurs and investors are not addressed. Hampton Capital states that:
Australia’s international competitiveness in future knowledge industries will remain under threat and the appetite for risk taking in Australia’s start-up and innovation ecosystem will decline.
Business Investment and Innovation Program
4.41
There were several recommendations put to the Committee on how Australia could make the BIIP more attractive to venture capital and entrepreneurs.
4.42
An overall theme was the complexity and lack of certainty for applicants in this visa class. Mr Cecil Bass, a migration agent, explained that ‘significant business migrants’ do not have certainty and transparency during the visa process as a result of the unpredictability surrounding Australia’s administrative system for visas. This may discourage people from pursuing their operations in Australia. Mr Bass further explained:
…I think the best-quality applicants turn away when they see the processes they have to go through in order to ultimately get to Australia – that’s business migrants. They think, ‘this is just too hard’ – it’s too complex, it’s unpredictable, it’s extremely expensive… I think we limit Australia’s potential to attract the best-quality business migrants by making them go through such an onerous and complex process.
4.43
Similarly, Hampton Capital argued that the BIIP broadly serves its purpose of providing pathways for all types of business migrants:
...but has considerably underperformed in the high-risk, high-reward segment of entrepreneurship. While the overall policy objective was commendable, its implementation didn't provide the levels of certainty, consistency and confidence that are needed to be successful.
4.44
Mr Bass provided the Committee with a case study of an American venture capitalist who previously lived in Australia who was applying for a visa in the BIIP. The venture capitalist initially applied for nomination through Austrade but found that ‘Austrade’s system was down and that it wouldn’t be working for at least another month and that perhaps that client would like to engage directly with one of the states’. Mr Bass explained that the client chose Queensland but within 24 hours of making that choice Mr Bass learned through a professional network that ‘…at midnight Queensland were closing down business for innovation nominations because they’re overwhelmed.’
4.45
Mr Bass explained some of the frustrations:
If I hadn’t heard through my professional grapevine I would have come to work the next morning, put up a nomination to Queensland and it would have failed. This is just how the bureaucracy works – there are so many moving parts which are not coordinated or correlated. I believe this causes unnecessary frustration and delays. And, really, it doesn’t add much to the process as it occurs.
4.46
Hampton Capital has also noted that the Global Talent visa is not aimed at entrepreneurs, noting that it has a focus on those who are seeking employment or can ‘demonstrate outstanding ‘skilled’ achievements (such as candidates with PhDs) rather than ‘entrepreneurial risk takers’ :
…who are committed to investing and building businesses. Steve Jobs, Richard Branson, Evan Williams (Twitter), Bill Gates, Steve Wozniak, Mark Zuckerberg, Matt Mullenweg (WordPress) and David Karp (Tumblr) do not have anything other than an honorary degree between them but are some of the world’s most successful entrepreneurs. Alibaba founder Jack Ma was rejected by Harvard Business School.
4.47
Having the wrong visa policy settings can cause significant lost opportunities for Australia as Mr Tom Chan from Hampton Capital explained:
…in terms of what we're missing out, we've done some modelling across a proposal where 1,000 visas could be proposed to high-value and start-up entrepreneurs. From our basic calculations, we're missing out on about $8.3 billion worth of opportunity, which equates to around $2.75 billion in investment but also about $1.1 billion into Australia's R&D sector. Just from our modelling, this would create about 8,000 jobs within a few years. This is the potential scope of opportunity that we could create by having an active pathway for both start-up and high-value entrepreneurs.
4.48
Hampton Capital offer two key solutions that could help Australia facilitate a more attractive environment for entrepreneurs and investors;
Create two distinct visas to attract young, determined innovative entrepreneurs (“Start-up Entrepreneurs”), and older commercially experienced and networked entrepreneurs (“High Value Entrepreneurs”) who are invested into Australia’s knowledge and innovation ecosystem.
Introduce a more effective system of obligations that ensures Venture Capital investors and entrepreneurs are genuinely committed and will not divert funding to passive, low risk investments with little relation to the Knowledge Economy.
4.49
Fragomen Worldwide suggested that the existing BIIP program needed to be expanded so as to not be only restricted to experienced business people:
Visa products for entrepreneurs must competitively recruit for the best long-term prospects for starting a business and allowing for the possibility of false-starts before success. Restricting the program to experienced businesspeople who have already attracted funding, may mean that Australia misses out on prospective talent that will instead establish elsewhere, or worse, not be realised at all.
Global Talent Program
4.50
As discussed above the Global Talent Program has had significant interest from companies investing in and/or moving their operations to Australia. However in order to be successful, Australia must address a series of challenges to attract the best and brightest migrants and investors especially where Australia faces international competition. Some of the key issues presented to the committee are discussed in this next section.
An innovation and entrepreneurship ecosystem
4.51
Numerous organisations drew the committee’s attention to the need to provide for a supportive ecosystem for technology and innovation. Mr Verwer elaborated on what is meant by a supportive ecosystem that such entrepreneurs are looking for :
The positive thing they're looking for is that Australia has long-term strategies in the industries of the future; that Australia has ecosystems that will help them scale. For individuals, frankly, it's that if they lost a job there would be another one that they could go to, or, if they grew out of a job, there would be enough critical mass and enough of a market for them to go to. They're looking, generally, to an ecosystem for their family as well as for their businesses and they're looking for a regulatory framework which sends the right signals.
4.52
Ecosystems that support innovation and entrepreneurship have been established in other countries. The Australian Investment Council (AIC) told the Committee:
…if you are looking at the ecosystems and best practice around the world there are very well-established innovation sectors in the US, UK, Israel and Singapore. They are really attractive places for skilled migration to go. If you look at the way they are set up, they are bringing in that knowledge base and they are bringing in international experience to boost innovation and to supplement the local economy and to create jobs and foster economic growth.
4.53
AIC described some well-known ecosystems in the United Kingdom and the United States:
The City of London in particular has put a lot of effort into building fintech, but more broadly a technology and innovation ecosystem. The US is simply renowned—Silicon Valley. If you want to go to a high-level, highly capable, highly integrated, highly effective innovation, be that [venture capital] or more broadly an ecosystem, London comes to mind and Silicon Valley comes to mind.
4.54
Atlassian is Australia’s largest home-grown software and cloud services company which makes tools like Jira and Trello. Canva is an Australian headquartered online graphic design platform. They noted in their joint submission, in relation to supporting innovation that they found that the current immigration system worked well for them:
…the current immigration system generally serves us very well as companies. Both Canva and Atlassian experience high levels of service from the Department and generally can hire or relocate the skilled employees we require. Beyond our own needs, it is critical to us that the visa process and rules support the building of a complete tech ecosystem in Australia.
4.55
Atlassian and Canva suggested the skilled migration program could be better aligned with the needs of the tech industry :
The Government should be congratulated for building a world class program that targets the best and brightest globally. That program is working for us already. Industry is keen to understand how it can better support and be involved in the Global Talent program to ensure that the program objectives align with what the tech industry needs.
Clearer articulation of Australia’s steps to attract talent
4.56
Mr Verwer stated that while some elements of the ecosystem that support innovation and entrepreneurship were established, however, effective, centralised communication of Australia’s long term public policy strategies in key sectors is vital to the program’s success.
4.57
Mr Verwer noted that other countries such as Singapore, Israel, Ireland, the Netherlands, Nordic countries and Canada are competitors for Australia but also provide insights that are valuable:
They see the link between the enterprise and the entrepreneur. They can say to the world, 'We have long-term strategies which are credible,' and they can say to the world, 'We have grants and incentive schemes and public policy arrangements which are easy to understand.' They're welcoming of global talent and they have supportive ecosystems.
4.58
The clarity with which other countries communicate information in this space is an important consideration. Mr Verwer noted that some of these countries provide information which is quick and easy to find:
There is another thing that some of the countries do: their menu of incentives and grants and the levers of government support are crystal clear...if I look at what the Israelis do, I know within a couple of minutes exactly what they're offering for a business in the health sector and exactly what they're offering for a start-up.
4.59
Mr Verwer was clear that Australia has much to offer noting that ‘we have more incentives and grants than you can poke a stick at.’ He explained further:
If we laid out on the table what Australia is offering in terms of health, life sciences and translation funds, we'd be here all afternoon talking about them. The other countries package them up far more clearly and then tie them to a long-term strategy so that people who are interested in a particular area such as agritech have a much better idea of how the strategy links to the ecosystem and the incentive schemes.
Permanent residence
4.60
In terms of better attracting the skills required to build this ecosystem, Atlassian and Canva were of the view the ‘the distinction between those occupations that have a pathway to permanent residence and those that do not’ should be removed. The fast route to permanent residence offered by the Global Talent Program was, according to Atlassian and Canva, ‘extremely beneficial and attractive to some’, however:
It is further deepening the difference between those who can get permanent residence and those who cannot. It has also heightened the difference between those who are eligible for fast-tracked permanent residence through the GTI and those who must wait three years under the transitional [Employer Nominated Scheme] route.
4.61
Atlassian and Canva elaborated on the effect this distinction has on attracting global talent working in their business noting that the ‘…fact that some of our employees have a pathway to permanent residence and some do not creates real issues for our businesses.’
Individuals who do not have a permanent pathway feel less committed to long-term goals and consider themselves disadvantaged and deeply misunderstood in terms of their tech skill set and the demand for that skill set in the global market compared to those who have a pathway.
The fact that a position has no pathway also reduces the candidate pool and discriminates against those with families, as these candidates are far less likely to want to relocate for only two years (maybe four).
We spend a lot of time, effort and resources trying to create pathways for valuable employees we want to keep in the business.
4.62
Atlassian and Canva also outlined their view of the need for a temporary Global Talent Independent visa:
…we believe that there would be huge value to the tech industry and the Australian economy more widely, if highly talented individuals who would be eligible for the GTI but who are not yet ready to commit to permanent residence could opt for a Two-year temporary visa with the ability to convert to permanent residence under the GTI or another stream before that visa expires. We believe that this would attract an even larger pool of global talent to Australia and would also help companies to better manage their migration program.
4.63
Mr Andrew Low echoed this perspective, noting that having a temporary visa with a pathway to permanency works for the mutual benefit of both the migrant and the host country:
We can see also that, for a number of these people with computer science and other skills, once they go through the process they continue to contribute to economic activity as permanent residents. We would put it to the committee that temporary skilled workers cover temporary needs but also allow a 'try before you buy' for both the worker and the host country and therefore improve the impact of our permanent migration intake.
Regulatory issues
4.64
Mr Low provided evidence that the Global Talent visa is reducing bureaucratic process. The visa:
…is looking for a set of skills and aptitudes that can be applicable towards creating new businesses, new ecosystems and activities. We think that's an important advance, because the more detailed lists of particular professions where there's a lack of people don't always capture that broader sense of people who have the ability to really create new activities.
4.65
Some of the regulatory requirements around the salary threshold may be too high according to the Chartered Accountants Australia and New Zealand and CPA Australia:
…minimum annual salary threshold of $153,600 may be too high for potential employers and applicants, as it makes it difficult to attract targeted talent to Australia. … In contrast, the UK’s Global Talent Visa does not require applicants to receive a minimum salary to be eligible for consideration, and where the Canadian equivalent specifies a threshold that is not the prevailing wage, its around the C$80,000 mark.
4.66
Atlassian and Canva also proposed that when considering the earnings of Global Talent applicants, consideration should be given to equity compensation which is common in start-ups and of the technology sector:
Allowing equity to be counted in a person's salary for the Global Talent Program would create a pathway to permanent residence for more employees, even those in two year occupations who might be nominated under an employer sponsored Global Talent agreement or under the GTI. Canva, Atlassian and other start-ups rely on offering equity in the company as a way to lure the best talent to our business.
Committee comment
4.67
Based on the evidence received, the Committee notes that in order to attract global talent and capital, Australia must aim to create an ecosystem that creates the necessary conditions to ensure that we are well positioned in an internationally competitive market.
4.68
The Committee notes the evidence given by the business sector that suggests while the policy settings for Australia’s BIIP and Global Talent-related visas are good, there is room for improvement. The appropriateness of the visa products available to investors and talented individuals will not reach their full potential unless the underlying ecosystem exists that provides a place for these potential migrants.
4.69
The Committee notes the appointment of the Prime Minister’s Special Envoy for Global Business and Talent Attraction at Home Affairs, including the work of the Global Business and Talent Attraction Taskforce. This is an important step towards creating the conditions required for the development of the necessary ecosystem.
4.70
The Committee believes that, given the unprecedented impact of the COVID-19 pandemic, Australia is in an advantageous position due to its effective management of the virus. This places Australia in a position of strength to utilise our resources to attract the best and brightest skilled migrants and investors from overseas, and accelerate the development of the required ecosystem.
4.71
The Committee broadly supports the intent and structure of Australia’s business and talent-related visa programmes, including the policy settings. However, there are concerns that the potential of the various visa classes will not be fully realised until Australia’s ability to attract the necessary skills, talent and entrepreneurship improves.
4.72
Overall, based on the evidence received, the Committee is of the view that this is an excellent opportunity to attract a wide range of talented individuals and investors to help set the conditions that will foster and develop the necessary ecosystem that will make full use of both the BIIP and Global Talent Program.
4.73
One clear impediment to realising this opportunity that has emerged during this inquiry is a lack of clear articulation of Australia’s strategy in one place. While the work of the Special Envoy for Global Business and Talent Attraction is certainly a step in the right direction, in the Committee’s view it is necessary to go further in terms of actively publicising Australia’s attractiveness as a migration destination for investors and talented individuals.
4.74
The Committee also received evidence about the benefit of a temporary visa option under the GTI program with a clear pathway to permanent residence. The Committee considers such a visa would have particular benefits in the technology industry and other emerging industries.
4.75
The Committee recommends the establishment of a global marketing campaign to attract global talent and investment. This campaign should:
Target talented individuals and investors in key competitor countries;
Raise awareness of both the opportunities in Australia, and the migration mechanisms available to those seeking to live, work or settle in Australia; and
Leverage off the work already being undertaken by the Special Envoy for Global Business and Talent Attraction.
4.76
The Committee recommends that the BIIP and GTI provide options for both automatic permanent residence and temporary visas with a clearly articulated path to permanent residence.