EXPLANATORY STATEMENT
Migration Regulations 1994
AREAS OF WORK AND KINDS OF WORK – SPECIFIED SUBCLASS 462 WORK 2016/097
(regulation 1.15FA)
- Instrument IMMI 16/097 is made under regulation 1.15FA of the
Migration Regulations 1994 (the Regulations) for the purposes of the definition of specified Subclass 462 work in regulation 1.03 of the Regulations. - The purpose and operation of the Instrument is to specify the kinds of work and the areas of Australia applicable under the definition of specified Subclass 462 work to an applicant wanting to apply for a second Subclass 462 (Work and Holiday) visa. This Instrument incorporates changes to the Regulations as a result of the Migration Legislation Amendment (2016 Measures No. 4) Regulation 2016.
- Consultation was undertaken with the Office of Northern Australia and with industry stakeholders through the Tourist Visa Advisory Group before the Instrument was made. The Northern Australian taskforce, which was based in the Department of the Prime Minister and Cabinet, also undertook extensive consultation in developing the White Paper as a whole.
- The Office of Best Practice Regulation (OBPR) has advised that a Regulatory Impact Statement is required (OBPR Reference 19212) for the proposal: Establishing a second Work and Holiday (subclass 462) visa initiative for northern Australia to support tourism and agriculture. The prepared statement is at Attachment A to this Explanatory Statement.
- Under section 10 of the Legislation (Exemptions and Other Matters) Regulation 2015, the Instrument is exempt from disallowance and therefore a Statement of Compatibility with Human Rights is not required.
- The Instrument commences immediately after the commencement of the Migration Legislation Amendment (2016 Measures No. 4) Regulation 2016.
Attachment A
SHORT-FORM REGULATION IMPACT STATEMENT
Name of department/agency: Department of Immigration and Border Protection (DIBP)
OBPR reference number: 19212
Name of proposal: Establishing a second Work and Holiday (subclass 462) visa initiative for northern Australia to support tourism and agriculture.
Summary of the proposed policy and any options considered:
Work and Holiday (subclass 462) visa holders who undertake three months (88 days) work in the tourism or agriculture in northern Australia will acquire eligibility for a second Work and Holiday visa.
This will create an incentive encouraging Work and Holiday visa holders to perform tourism or agriculture work in northern Australia during their stay, thereby assisting the industry with its short term seasonal labour needs and also encouraging increased tourism visitation to the region.
What are the regulatory impacts associated with this proposal? Explain
The Department expects the proposal to result in a relatively minor increase of regulatory burden in the form of an increased number of Work and Holiday (subclass 462) visa applications from participants.
What are the regulatory costs associated with this proposal? Explain and quantify.
As there is expected to be an increase in the total number of Work and Holiday (subclass 462) visa applications as a result of the proposal, there will be a notional increase in regulatory cost associated with the time taken to complete these additional visa applications.
Based on participation rates in the existing second Working Holiday (subclass 417) visa initiative, which is similar in nature to the Work and Holiday proposal, it is expected that around one in every five Work and Holiday participants will acquire a second Work and Holiday visa. As there were 10,214 Work and Holiday visas were granted in 2013-14, this would translate to approximately 2,000 new Work and Holiday visa applications as a direct result of the proposal.
We therefore calculate the regulatory costs of this proposal to be $29,000 per annum. This costing has been assessed and agreed by the Office of Best Practice Regulation (OBPR) under the Regulatory Burden Management Framework, and is quantified in the regulatory burden and cost offset estimate table below.
Regulatory burden and cost offset estimate table:
Average annual regulatory costs (from business as usual) |
Change in costs ($ million) | Business | Community organisations | Individuals | Total change in cost |
Total, by sector | $0 | $0 | $0.029 | $0.029 |
|
Cost offset ($ million) | Business | Community organisations | Individuals | Total, by source |
Agency | $0 | $0 | ($0.679) | ($0.679) |
Are all new costs offset? Yes, costs are offset No, costs are not offset Deregulatory—no offsets required |
Total ($0.029 – $0.679) ($ million) = ($0.65) |
What are the offsets for the regulatory costs associated with this proposal?
The department proposes to use the reduction in regulatory burden of $679,000 per annum from the continuing expansion of online lodgement for visitor visas in China and India (OBPR ID 19031) to fully offset this regulatory cost.
Overview
The Migration Regulations 1994, as amended by the Migration Legislation Amendment (2016 Measures No. 4) Regulation 2016, introduced the concept of a second Subclass 462 (Work and Holiday) visa to address labour shortages in northern Australia's tourism and agricultural sectors. This initiative was designed to incentivise Work and Holiday visa holders to engage in seasonal work in these areas, thereby supporting local industries and boosting regional tourism. The policy objective, as articulated in the Explanatory Statement, is to provide an opportunity for eligible visa holders to extend their stay and work in northern Australia, which is expected to meet both the labour demands of these sectors and encourage increased visitation to the region. The Department of Immigration and Border Protection collaborated with relevant stakeholders, including the Office of Northern Australia and the Tourist Visa Advisory Group, to develop this proposal, which was subsequently endorsed by the Office of Best Practice Regulation.
The regulatory impact associated with this initiative is anticipated to be minor, primarily involving an increase in the number of Work and Holiday visa applications. According to the Short-Form Regulation Impact Statement, around one in five participants is expected to apply for a second visa, translating to approximately 2,000 additional applications annually. The associated regulatory cost is estimated at $29,000 per year, which is offset by a reduction in regulatory burden from the expansion of online visa lodgement services in China and India, amounting to a savings of $679,000 annually. This measure ensures that the new costs are fully offset, thereby maintaining a net reduction in regulatory burden.
Scope and Application
The Migration Regulations 1994, as amended by Instrument IMMI 16/097, specify the kinds of work and the areas of Australia applicable to an applicant seeking a second Subclass 462 (Work and Holiday) visa. This Instrument, made under regulation 1.15FA of the Regulations, aims to define the scope of specified Subclass 462 work, focusing on enabling applicants who have completed three months of work in tourism or agriculture in northern Australia to become eligible for a second Work and Holiday visa. This initiative is designed to support the tourism and agriculture sectors in northern Australia by providing a workforce to meet their seasonal labour demands. The Instrument applies to individuals who are applicants for a second Work and Holiday visa, thereby targeting foreign workers within the specified industries and regions. Geographically, the scope of the Instrument is confined to areas in northern Australia, as determined by the Regulations. The Instrument incorporates changes resulting from the Migration Legislation Amendment (2016 Measures No. 4) Regulation 2016, and is exempt from disallowance under section 10 of the Legislation (Exemptions and Other Matters) Regulation 2015.
Key Provisions
The key provisions of the proposed Instrument, IMMI 16/097, pertain to the definition of specified Subclass 462 work under regulation 1.03 of the Migration Regulations 1994 (subsection 1.15FA). This Instrument aims to specify the kinds of work and areas of Australia applicable to an applicant seeking a second Subclass 462 (Work and Holiday) visa, particularly in the context of tourism and agriculture in northern Australia. This legislative change is a result of the Migration Legislation Amendment (2016 Measures No. 4) Regulation 2016. Extensive consultation was undertaken with various stakeholders, including the Office of Northern Australia and the Tourist Visa Advisory Group, to ensure the relevance and effectiveness of these changes.
The Instrument imposes specific obligations and requirements on individuals seeking a second Subclass 462 visa. Primarily, applicants must have completed at least three months of work in the specified sectors of tourism or agriculture in northern Australia. This work requirement aims to support the region's seasonal labour needs and enhance tourism visitation. The Instrument also mandates that applicants adhere to the conditions set forth in the Migration Regulations 1994, ensuring compliance with visa requirements and obligations during their stay in Australia.
Breach of the conditions set by the Instrument may result in various consequences, including potential civil and criminal penalties. While the specific penalties are not detailed in the Explanatory Statement, breaches of the Migration Regulations 1994 can generally lead to visa cancellation, deportation, and bans from future visa applications. The severity of the penalties may depend on the nature and extent of the breach, with more serious violations potentially resulting in criminal charges and fines. Given that the Instrument is exempt from disallowance under section 10 of the Legislation (Exemptions and Other Matters) Regulation 2015, it does not require a Statement of Compatibility with Human Rights.
The Regulatory Impact Statement prepared by the Office of Best Practice Regulation (OBPR) highlights that the proposal is expected to result in a relatively minor increase in regulatory burden, primarily due to an expected rise in the number of Work and Holiday visa applications. The estimated increase in regulatory costs is approximately $29,000 per annum, which is offset by a reduction in regulatory burden from the expansion of online lodgement for visitor visas in China and India, amounting to $679,000 per annum. This cost offset ensures that the net impact on regulatory burden is effectively managed and balanced.