Visa options for accountants: maximising the benefits, minimising the risks

While many larger accounting firms recruit accountants from overseas under the 457 ‘work visa’ arrangements, factors such as the costs of overseas recruitment campaigns and the relatively complex and onerous obligations of sponsorship have deterred firms that do not have large overseas recruitment programs from this option.  Nevertheless it is likely that Australia will remain unable to meet accounting shortages from its own labour market in the short to medium term, and that all accounting firms will be affected by the competition for skills in the accounting industry. 

There are a number of other visa options that are available to employers, depending on circumstances.

• Short term vacancies of up to six months may be filled by people already in Australia on Working Holiday Maker (417) or Work and Holiday (462) visas.  Many young professionals and graduates from countries with accounting standards comparative to Australia’s use these visas to search for longer term work opportunities and they can subsequently be sponsored for the four year temporary 457 work visa while they are still in Australia.
  
  
• Employers now have the option of employing accounting graduates for up to 18 months after they graduate without having to meet the requirements and obligations of the 457 work visa.  The new 18 month Skilled Graduate (temporary) visa allows overseas students who have completed their studies in Australia to undertake employment or a professional year to improve their chances of obtaining a permanent visa later.
  

• Employers seeking to utilise this option may want to consider developing employment contracts that address the specific circumstances of temporary visa holders, including such things as access to training programs and conditions of employment and termination. 

In the medium term, the Skilled Graduate visa will also provide employers access to a greater pool of employable overseas students on completion of the professional year. The three professional accounting bodies (NIA, CPAA and ICAA) have jointly designed a Skilled Migration Internship Program - Accounting (SMIPA) which will make accounting graduates more employment ready in terms of their understanding of Australian accounting practices, business communication skills and English language ability.  On completion of the professional year, overseas students can apply for permanent residence with greater chance of success.  

• Graduates applying for the Skilled Graduate visa will normally have permission to work full-time while their visa is being processed, while they hold the Skilled Graduate visa, and while they are waiting for their permanent visa to be finalised.
  
  
• Current processing times for the Skilled Graduate visa and for subsequent permanent visa applications are approximately 6 months per visa, so a graduate student may have permission to work for more than 2 years before they obtain permanent residence.

• The Occupational Training visa allows employers to offer supervised, workplace-based training to either:

• recent graduates from Australian accounting courses who want to undertake a period of supervised work experience for professional registration either in Australia or in their home country; or
  
  
• foreign nationals who are overseas and are seeking further accounting or training skills and who have at least 12 months employment experience overseas or who have recently graduated from an overseas educational institution.

• The exchange visa allows employers to bring in staff from overseas providing they offer similar developmental opportunities for overseas work to their Australian staff.  This is a temporary visa for up to 2 years duration.

The penalties and minimising risk

Since August 2007 all employers are liable to strict sanctions under Immigration law if they employ, or refer for employment, expatriates who are unlawful or do not have permission to work.  Work means any work including unpaid work.  Severe penalties apply to individuals and corporations who are convicted of these offences.  Minimum penalties are $13,200 for individuals, and $66,000 for corporations, and / or 2 years imprisonment.  Most first time offenders will be given a warning notice.  Subsequent offences will be treated more severely.  

In addition, approved sponsors under the 457 work visa arrangements need to comply with a range of other specific undertakings.

Here are some tips for minimising risk when employing expatriate staff:

• All Australian employers should consider implementing risk strategies to minimise the chances of incurring sanctions under Immigration law.  Best practice would be to check any entitlement to work prior to employing or engaging new staff, or within 48 hours of doing so.  You can check a person’s legal entitlement to work by:

• requesting evidence of Australian citizenship (Australian passport or citizenship certificate or Australian birth certificate only if issued before 20 August 1986);
  
  
• requesting evidence of New Zealand citizenship (New Zealand citizens have the right to work in Australia);
  
  
• requesting a copy of their passport and checking that their visa entitles them to work for you; and
  
  
• registering or checking with the DIAC Visa Entitlement Verification Online (VEVO) system to check visa entitlements and work rights at:   http://www.immi.gov.au/managing-australias-borders/compliance/info-employers/evo-orgs.htm.  This is a free service available 24 hours, seven (7) days a week.

• If you are an approved sponsor under the 457 visa arrangements, ensure you have policies and procedures in place for complying with all your sponsorship undertakings.  Understand:

• when your obligations begin and end (not necessarily when your expatriate employee commences or leaves your employment);
  
  
• what costs you may be liable for in relation to hospital treatment (if your employee or any accompanying family members are not covered by appropriate medical insurance);
  
  
• return travel to the home country, or Immigration location and detention costs;
  
  
• your obligations to pay the Minimum Salary Level (MSL) and how unpaid leave, salary packaging and additional work hours can potentially adversely impact on your compliance with this requirement; and
  
  
• your responsibilities to notify Immigration of certain changes in circumstances to either your company or your expatriate employee, and the financial and other consequences of failure to report any such changes.

Any breach of undertakings, whether intentional or not, may result in a suspension of all visa processing until the matter is resolved or further action against the employer is taken.

• Understand how standard HR policies applied to Australian staff may not be appropriate for  expatriate staff as they may conflict with your sponsorship obligations or the conditions placed on visa holders. For example, the 457 sponsorship obligations in relation to change of circumstances and cessation of employment mean that expatriate 457 visa holders cannot always be given access to the same leave without pay provisions (including maternity/paternity leave without pay) that many Australian workers can access, and may also result in a failure to comply with visa conditions.
  
  
• Consider how your employment contracts may need to be formulated to take account of specific issues relating to expatriate employees and any restraints on their entitlements because of their visa conditions

Hall & Wilcox's Migration Services team offer strategic advice and practical assistance by registered migration agents.  We are able to provide advice and assistance with temporary and permanent visa applications for work, training or other purposes; develop risk strategies to ensure compliance with sponsorship obligations and immigration laws; and formulate appropriate HR policies and employment contracts for expatriate employees.  For further information visit our website or contact a member of the Migration Services team.

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