House debates

Monday, 21 November 2016

Private Members' Business

Working Holiday Visa Program

1:16 pm

Photo of Andrew WallaceAndrew Wallace (Fisher, Liberal Party) Share this | Hansard source

I would like to point out to the member for Mitchell that this motion actually does call on the government to bring that legislation into play—this government's legislation, the great reforms he thinks they are going to do one day. Well, 'one day' is this summer period across Australia, where international young people, generally, travelling in Australia will be inundating this country coming in on 417 visas. So action on this needs to take place in the next two week. Perhaps those opposite would like to pay some attention. Rather than trying to vilify members on this side they should go back and do the work they have set up and have not yet completed. None of us on this side are surprised by that. This government has proven itself to be absolutely work-shy when it comes to getting legislation through the parliament, or doing the job that the Australian taxpayer is paying them to do.

These statistics regarding the exportation of 417 working holiday visa holders should be a source of shame for this government. Thirty-five per cent of 417 visa holders said that they were paid less than the minimum wage. We know what that means on the ground. It gives some businesses an unfair advantage against good Australian businesses doing the right thing and paying people a fair wage. Fourteen per cent said they had to pay in advance in order to get regional work—a worker pays a company in advance to get the work! If that is not an Australian I am yet to see it. Also, only 21 per cent of people signed a written agreement. Perhaps the most concerning stat is that six per cent of workers had to pay an employer to confirm that they filled their regional work requirement—pay them to do what is a statutory requirement for those businesses.

These workers are necessary. We know that. Farmers say over and over again that backpackers fill shortages in the Australian food production industry. In essence, they need those workers to get their food to market. No-one on this side is worried about that. In fact, we are taking action to support those farmers to ensure that they have access to these workers. Unfortunately, when you have a government that openly states its disregard for workers, and for workers' rights, businesses feel emboldened and free to exploit workers who do not know their rights. From young adults living in my house and from nephews and nieces who have travelled overseas and have had friends come to visit, I have firsthand knowledge of the number of young people I have seen come from family homes who have been employed in this country on a 417 and are not being paid what they deserve to be paid. The stories are there if those opposite would like to connect with someone in the community and ask the question at the barbecue they are having over Christmas. See if you have some friends who might bring some 417 visa visitors to Australia to your Christmas day and ask them how they are being paid; you will be surprised.

In 2011-12, just five per cent of dispute forms lodged with the Fair Work Ombudsman related to visa holders, while in 2015-16 that figure increased to 13 per cent. Worse yet, of the people who approached Fair Work who were visa holders in 2011-12, 23 per cent were 417 holders. By 2015-16 that number skyrocketed to 44 per cent. This is happening in our community and it is increasing, because this government quietly gives the nod to those businesses that it is okay to exploit these young people. It is okay to get an unfair advantage compared to companies doing the right thing. This government is giving them acquiescence because this legislation has not been brought on. The Fair Work Ombudsman recovered $1.37 million for 417 visa holders in 2015-16. That should give you some insight into the level of what is occurring here, because we are not talking about people who earn an enormous amount of money in these jobs. It is generally people who are lucky to be paid at base level wage. So I suggest that those opposite start getting busy, get rid of their work-shy habits, stop these underpayments that are occurring across the country, which have the flow-on effect of driving down Australian wages and conditions, and make sure that the four out of five backpackers who do not work on farms are not being exploited by businesses while this government sits idly by and watches. Let's see if we can get busy and do it before the summer period.

The Fair Work Ombudsman's inquiry into the wages and conditions of people working under the 417 working holiday visa program commenced over two years ago and raises issues that the government has since taken strong action to address. Allow me to remind the member of the positive improvements the government has already made. In 2015, the government made it illegal for people to pay for or employers to charge for a visa outcome. Established 417 visa holders who are seeking a second year visa also need to provide a payslip as proof that they are officially being paid before an additional visa is granted to them.

In 2015 the government also established Taskforce Cadena, through which the Fair Work Ombudsman and Australian Border Force can together investigate and address cases of migrant worker exploitation. Taskforce Cadena is a joint agency task force comprising the Department of Immigration and Border Protection, its operational arm, the ABF, and the Fair Work Ombudsman. Taskforce Cadena also involves collaboration with other agencies, such as the AFP, the Australian Criminal Intelligence Commission, the Australian Securities and Investments Commission and the Australian Taxation Office, as well as local law enforcement agencies.

Since its launch, Taskforce Cadena has completed more than 11 operations, resulting in the detention of at least 95 unlawful non-citizens and the execution of more than 31 warrants. Some of these matters are ongoing, with Australian Border Force investigators preparing briefs of evidence for consideration by the Commonwealth Director of Public Prosecutions. People involved in the organisation of visa fraud and illegal work can face penalties of up to 20 years imprisonment or fines up to $100,000. People involved in the exploitation of foreign workers are liable for civil penalties of up to $10,800 per breach for a person or $54,000 for a corporation.

The Turnbull government has made it clear on numerous occasions that attempts to exploit Australia's temporary visa programs will not be tolerated. The task force continues to gather intelligence across all industries where illegal work practices involving unlawful non-citizens and illegal foreign workers may be taking place. Its operations send a strong message to individuals and syndicates involved: if you are in Australia without a valid visa, if you are working in breach of your visa conditions or if you are exploiting foreign workers, you will be caught. We make no apologies for that.

Recently, the government announced that employers of working holiday-makers will be required to register with the Australian Taxation Office, ensuring that government sees how people are being employed. The government also has a comprehensive plan to protect vulnerable workers, such as migrant workers. Well before the Leader of the Opposition was talking about this issue, the government had established a Migrant Workers' Taskforce to rectify instances of exploitation, and announced new powers and funding for the Fair Work Ombudsman. Legislation to implement these commitments will be introduced early next year. In contrast, when in government, Labor had no plan to protect vulnerable workers. In fact, when the Leader of the Opposition was the relevant minister he slashed funding to the Fair Work Ombudsman by 17 per cent and cut Fair Work Ombudsman staffing by 20 per cent.

In my region of the Sunshine Coast, backpacker labour is key to the harvest of strawberries, pineapples and other fruit and vegetables. Labour on temporary visas is also vital to the survival of the dairy, horticulture and fishing industries, which would face the prospect of shutdown without it.

The coalition government put forward a fully-costed reform policy to reduce the tax rate for working holiday-makers from a proposed 32.5 per cent to 19 per cent. The coalition's reform package had come after extensive consultation with industry, had been endorsed by the National Farmers Federation, was aimed at ensuring certainty for farmers so they could plan to hire backpackers over the picking season, ensured tax rates were internationally competitive and ensured fruit and vegetables were on the table at Christmas at the most affordable prices. Thank you.

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