Karen McNamara (Dobell, Liberal Party) Share this | Hansard source

I rise today in support of the Migration Amendment (Charging for a Migration Outcome) Bill 2015.

This bill seeks to make amendments to the Migration Act 1958 insofar as introducing a new criminal and civil penalty structure as punitive means to outlaw the practice whereby sponsors seek payment in return for effective sponsorship of persons seeking employment in Australia. The amendments in this bill will have a broad application across temporary and permanent work visa programs, including the much-publicised 457 visa.

In March of this year the coalition government released its response to the independent review into integrity in the subclass 457 visa program, also known as the Subclass 457 Integrity Review. This review was commissioned by this government upon coming into office in response to much confusion surrounding the practices of 457 visas. This bill refers specifically to one particular recommendation of the review into the 457 visa program—that is, recommending that the practice of payments to sponsors of visa applicants be made illegal.

The Visa subclass 457 integrity review report, released on 10 September 2014, also recommended that payment for a migration outcome be reinforced through a penalty-and-conviction framework. The government supports and accepts this recommendation, which now forms the central component of this bill. This bill extends the implementation of this recommendation to other temporary and permanent work visas, thus not only the 457 visa is affected. In total, the bill covers five temporary sponsored work visas and two skilled permanent employer-sponsored visas. This broad application is a result of the 457 review panel recommending that any sponsored work visa was at risk of charging for a migration outcome.

Currently, the Department of Immigration and Border Protection, upon receiving allegations regarding persons offering or receiving money for an outcome, may conduct an investigation. However, at present no penalties exist to deter this conduct—this practice is not currently unlawful. This conduct does, however, risk undermining Australia's migration program through persons and organisations offering or receiving a monetary inducement for a migration outcome.

The payments-for-visas activity and charging for an outcome is unacceptable. Unfortunately, in my electorate of Dobell many restaurant and cafe operators have received cold calls from persons seeking to sign the business owner up to sponsoring a person seeking work in Australia. In the cases I have been advised of, the tout advises that they have individuals from India seeking to come to Australia to work as chefs or kitchenhands, and if a positive migration outcome is received the tout receives payment of up to $5,000 for each individual placed with an Australian employer.

Now, $5,000 per positive migration outcome is a significant amount for the tout. The migration agency who the tout is engaged by also receives their cut of the total payment received. However, under the current legislation such financial gain is permissible for sponsors and third parties who charge for an outcome. This practice is preying on people's desperation and, sadly, it has the ability to cause extensive negative repercussions for Australian wages and conditions. Unfortunately, the people who are often charged payment to obtain employment with an Australian employer are the most vulnerable, seeking to become new citizens trying to do the right thing.

Those born on foreign shores and heading to Australia to start a new life can come unstuck if they encounter an unscrupulous sponsor or third party who charges substantial fees for a migration outcome. It is not unrealistic to see that the most vulnerable new Australians—being those who speak poor, if any, English—are unfortunately those most targeted by those charging to obtain an Australian employment visa.

This bill will provide a strong disincentive for those currently charging for a migration outcome. A framework for criminal, civil and administrative sanctions against those that obtain financial advantage from the sale of a migration outcome will be implemented. Under this legislation, the 'selling' of sponsorship will now become an offence, with punitive measures applicable to those continuing to engage in this practice. The criminal offence of asking for or receiving a benefit in return for visa sponsorship will carry a court-imposed maximum penalty upon conviction of up to two years imprisonment or up to $64,800, which is 360 penalty units, or both.

A civil penalty of a maximum of up to $43,200, which is 240 penalty units, will also apply. The bill also introduces civil penalties for persons who ask for or receive a benefit in return for sponsorship, with a maximum pecuniary penalty of up to $43,200, which is 240 penalty units. Likewise, civil penalties will be introduced for persons who offer or provide a benefit to another person in return for sponsorship at a maximum pecuniary penalty of up to $43,200—240 units. This bill provides that in cases of bodies corporate, partnerships or committees of management of unincorporated organisations that individuals may be found in certain circumstances to be liable for an offence.

This bill also includes a new discretionary power which allows for the cancellation of a visa where there is evidence of payment for visas having occurred. The cancellation not only applies to the specific visa that has been paid for but also automatically applies to visas held by the individual's family members as well. In keeping with other cancellation procedures, the visa holder, and any respective family members who have also had their visas consequently cancelled, will be afforded the opportunity to seek a review of the decision.

Payments for visas also have the potential to reduce genuine employment opportunities for Australians, and this is of major concern to me, particularly as Dobell has a high youth unemployment rate and I am a strong advocate for jobs for our locals. The amendments in this bill secure the employment prospects for Australians, as they ensure overseas workers are able to fill roles that they are suitably qualified for and are not simply obtaining employment in return for making a payment to a sponsor. This bill also ensures employment opportunities in Australia are not reduced, and the impact on Australian wages and conditions is non-existent.

There is another group of people benefiting from this bill, and that is overseas workers seeking employment and a new life here in Australia. The amendments in this bill significantly reduce the ability for exploitation or extortion by the sponsor of their visa. The amendments ensure that only those overseas workers with genuine skills and appropriate backgrounds are achieving employment opportunities in Australia, not those who are willing to pay for these jobs. The bill will strengthen the overall integrity of Australia's migration program and support the genuine intention of visas being granted in the first instance.

There is anecdotal evidence that the exploitation of foreign workers has been occurring for many years, yet nothing has been done to date. The coalition government, however, is committed to rectifying this blight on our skilled migration system and ensuring that protective measures are enshrined in appropriate legislation. The explanatory memorandum to the bill states:

The Government considers that 'payment for visas' activity is unacceptable because it undermines the integrity of Australia's visa programmes. It is not acceptable for sponsors, employers or other third parties to make a personal gain from their position in a 'payment for visas' arrangement and it is not acceptable for a visa holder to become an Australian permanent resident by engaging in 'payment for visas' behaviour. Applicants who have paid for their visa are more vulnerable to exploitation and extortion by their sponsor, behaviour which endangers workers and undermines Australian workplace law.

There is no doubt as to the timeliness of these new strengthening measures, particularly given the recent insights through the Senate committee inquiry into 'the impact of Australia's temporary work visa programs on the Australian labour market and on the temporary work visa holders'. The inquiry investigated the exploitation and extortion of visa workers across Australia. Notably, it has investigated the falsification of wage and employment records by 7-Eleven franchisees, unveiling a culture of the systemic underpayment of wages and entitlements of international students working on temporary visas. Through the inquiry there have been revelations that some franchisees have demanded up to $70,000 from their employees in return for the sponsorship of their visa. As at 30 June 2015 there were just over one million temporary visa holders in Australia. They, just like every other worker in Australia, are entitled to basic rights and protections in their workplace, yet they are the most vulnerable to exploitation. The very fact that they become reliant upon their employer for the continuance of their visa leaves them exposed to threats, extortion and being forcibly overworked and underpaid. These findings are a mere glimpse of why this bill is so crucial.

The coalition government is taking the vital steps necessary to protect these vulnerable workers by removing the ability for sponsors, employers or any other third parties to exert such overwhelming control over visa holders. According to a report by the Migration Council of Australia in 2013, 48 per cent of all 457 visa holders who were included in the survey expressed that their motive for their application in the first instance was their desire to live in Australia or become a permanent resident. Seventy-one per cent of those surveyed had the intention to become a permanent resident at the expiration of their visa. These survey results reflect an inherent genuine desire for visa holders to work and live legitimately in Australia and make a meaningful contribution to the Australian economy and their local community. The Australian Council of Trade Unions, in their submission to the Senate committee inquiry, stated:

This desire for permanent residency is perfectly understandable on the part of those visa holders, but it also makes them more susceptible to exploitation and reluctant to make any complaint that may put their employment at risk. It is a vicious circle where the fact that they are unlikely to report any exploitation that occurs makes them all the more likely to be exploited in the first place.

The Sydney Morning Herald recently reported on a particular student who, upon completion of his studies, was looking for an Australian business to sponsor him. An owner of numerous takeaway businesses made an offer to him: for $45,000 in cash and the acceptance of $11 per hour to work in a shop, he could receive a working visa. By the time this particular student had exhausted all options and returned to that business owner, the cost of his visa sponsorship had jumped to $60,000. This is blatant exploitation and is effectively a form of modern day slavery that must be eradicated. These unscrupulous business owners or third parties must be penalised and brought to account for their appalling 'payment for visa' conduct.

Australia is regarded as an attractive and desirable country to visit live, study work and raise a family. Indeed, our economy needs skilled migration to fill the gaps in the Australian workforce to support our industries and businesses, but this should not be at the expense of workers' rights and liberties, whether they are Australian citizens or migrants. Recently the Minister for Employment, the Hon. Michaelia Cash, established a ministerial working group to consider additional means of educating and protecting foreign workers in Australia, and I commend the minister for her commitment to continued support of our foreign workers. This is a hand-in-glove approach to this bill, not only ensuring that there will now be legal penalties for engaging in 'payment for sponsorship' activities but also creating a real and practical framework to ensure that foreign workers are equipped and confident in their understanding of their rights and obligations while working in Australia. It is a wise and thorough approach to minimising any possible threats to those who may be vulnerable to exploitation.

There are still many foreign workers who have been caught up in a scheme of payment for sponsorship but are too afraid to speak up because of the threats of exposure, reporting and even deportation. Foreign workers who choose to come to Australia to live and work should not be placed under such duress. It is important that they are appropriately armed with the full understanding of their rights and that those who seek to take advantage of them will be held to lawful account.

The working group, however, will continue to be mindful that any practices and procedures that are put in place will not create further burdens or costs for businesses that choose to sponsor foreign workers. The government recognises that it is counterproductive to create further bureaucracy which may become a disincentive for sponsorship to continue. This bill and the minister's working group together create a holistic approach to protecting foreign workers.

I thank the minister for bringing this bill before the House, and I applaud her continued dedication to protecting the fundamental rights of all workers in Australia. We want Australia to continue to be seen as a welcoming destination for foreign workers as their contribution to our workforce and the Australian economy is important. History has shown the contribution of migrant labour to this great country. We must never forget the contribution of migrant labour in building the Snowy Mountains Hydro-electric Scheme—by far the largest engineering project ever undertaken in Australia. I commend this bill to the House.

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