Insights from Global Mobility Services

Australia: New concessions for sponsored visa holders impacted by COVID-19

26 November 2020

In brief Earlier this year, the Australian government announced that concessions would be made available to sponsored visa holders impacted by the COVID-19 related downturn.

Some of these concessions have now been formalised and we have summarised them below.

In detail

Impact of COVID-19 related reduced working hours or stand down on employer sponsored permanent residence under the Employer Nomination Scheme (ENS) Many employers were forced to stand down or reduce the hours of their employees due to COVID-19. For the purpose of ENS under the temporary residence transition (TRT) stream, periods of work that are not full-time could not generally be counted towards the required employment period.

Under the COVID-19 concessions, periods of unpaid/reduced hours work, or employment stand-down can now count towards the required employment period. The period of unpaid/reduced hours work, or stand-down must have occurred after 1 February 2020 as a result of COVID-19. This concession applies to ENS (TRT stream) applications lodged after 1 February 2020 and still pending.

Impact on ENS applicants relying on age exemptions during COVID-19 For ENS (TRT stream), applicants who are more than 45 years old, an age exemption exists if they have been considered a high-income earner (the current high-income threshold is $153,600 per annum). If an individual was previously earning more than the threshold and their income was impacted by COVID-19, a concession now applies allowing them to access the age exemption despite their income reduction. A pro-rata income threshold for the period earnings were impacted by COVID-19 may apply. The period of income reduction must have occurred after 1 February 2020 as a result of COVID-19. This concession applies to ENS (TRT stream) applications lodged after 1 February 2020 and still pending.

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Labour Market Testing (LMT) for ENS The Department of Home Affairs has provided some clarity around its expectation for Labour Market Testing (LMT) in relation to ENS applications. Given the economic disruption caused by COVID-19, the Government is keen to ensure Australian workers are prioritised for jobs and will therefore scrutinise ENS applications closely. Factors that will be considered to show a genuine need for an ENS application include:

• Whether the sponsor tried to source Australian workers for the position (advertising the job vacancy on the Government’s JobActive website or other national advertisements is particularly persuasive, although no minimum advertising period is specified); and

• Whether the application clearly establishes a genuine need to have a foreign national in a permanent role within the business. Demonstrating a genuine need is now more crucial than ever for ENS applications.

Global Talent Independent Program (GTIP) The popularity of the GTIP continues and it has quickly become the Australian Government’s preferred pathway to grant Permanent Residence (PR). Recent changes have been made to the GTIP to broaden its appeal and make it available to a wider range of applicants. One important change to note is that GTIP applicants are now able to seek a waiver from the usual visa health requirements if they suffer from a health condition that would have otherwise led to their visa application being refused.

The Department has been flooded with expressions of interest for the GTIP recently, which is impacting response times. For this reason, we recommend contacting PwC Immigration prior to EOI lodgement to assess eligibility in detail and to ensure applications are comprehensive.

State border restrictions State border restrictions are slowly easing, allowing for Australian domestic travel. Below is a summary as at the date of this publication. However, changes can happen quickly.

State Table header No domestic restrictions to enter Victoria except travellers from (who require a Victoria border crossing permit).

New South Wales No domestic restrictions to enter (NSW). Anyone travelling to NSW who has been in South Australia in the last 14 days must complete a NSW entry declaration form before entering NSW. Travellers who have been in an “area of concern” in South Australia during the past 14 days may not be permitted to enter NSW.

Queensland borders open to all of NSW and Victoria from 1 December 2020. Certain areas of are considered COVID-19 hotspots and travellers from these areas are not permitted to enter Queensland unless an exemption applies.

South Australia The Victorian border with South Australia opens from 1 December 2020, subject to public health advice. Travellers from Victoria will not be required to undertake 14 days of quarantine.

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State Table header Western Australia Travellers from very low risk locations (including , Queensland, ACT and ) must: • Obtain a G2G pass before travelling to WA; • Complete a health screening upon arrival in Perth; and • Scan their G2G pass to exit the airport. No quarantine is required. Travellers from low risk locations (including NSW and Victoria) must complete the above and: • Wear a mask as directed; • Scan their G2G pass and then verify they have suitable premises for self-quarantine for 14 days. If not, the traveller must enter Government approved quarantine for 14 days (at the traveller’s own expense); and • Present for a COVID-19 test on day 11 if they are still in Western Australia.

The takeaway

The Australian government has formalised concessions for employer sponsored permanent residence (ENS) applicants that were promised at the onset of COVID-19. However, ENS applications will be closely scrutinised going forward. It is more crucial than ever for businesses to clearly demonstrate a genuine need for a foreign national to fill a permanent role in Australia. As COVID-19 related domestic border restrictions start to ease, the above summary provides a snapshot of state border restrictions that are current at the date of publication. However, change can happen quickly where a COVID-19 hotspot is identified.

Let’s talk

For a deeper discussion of how this impacts your business, please contact your Global Mobility Services engagement team or one of the following professionals:

Global Mobility Services – Australia Jonathan Dunlea, Australia Leader [email protected] Carter Bovard, Immigration Leader [email protected]

Global Mobility Services – Global Leo Palazzuoli, Global Leader [email protected] Meet the Global Mobility Services global leadership team

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