Published on the 06/12/2016 | Written by Anthony Caruana

There is little doubt we have an IT skill shortage, but are skilled workers from overseas entering the country legitimately…

Newly published data from Australian Population Research Institute (TAPRI) has lambasted the 457 visa program, saying “the selection system bar has been set so low that if any high skilled persons are visaed it is an accident.”

In order to enter Australia through the 457 visa program, workers need to hold an occupation on the Skilled Occupation List (SOL) and be “highly trained’.

Over 2015-16, TAPRI’s data said 17,185 ICT professionals entered the country. Of those, 7,452 entered through the 457 program with the rest granted permanent residence.

TAPRI’s data showed over 5,600 of the workers entering Australia through the 457 program came from India. In TAPRI’s analysis, “a great majority” of these workers are recruited into local subsidiaries of Indian companies. In effect, they are locally sponsored intra-company transfers that take advantage of the residency status afforded through the 457 program.

Generally, when there is a skills shortage in an employment sector, salaries rise as a “seller’s market” emerges. As demand exceeds supply, prices rise. But TAPRI was able to access previously unpublished data from the Department of Immigration and Border Security about the salaries paid to Indian workers entering the local ICT sector through the 457 program.

TAPRI said that according to the ABS, the average Australian salary for full-time non-managerial employees in professional level IT occupations in 2014 was around $100,000. For the Indian nationals who entered Australia under the 457 program who fall into this category, over 60 percent had a nominated base salary below $70,180. Reports of 457 workers being paid below local market rates are not new.

In other words, the data suggests that in a time of scarcity when salaries for local workers should be rising, salaries are being undercut by the use of the 457 program to conduct what are effectively international company staff transfers.

It is important to note the 457 program does have a requirement for the sponsoring company train Australians for the roles being taken by overseas workers, outlined in page 10 of the “Temporary Work (Skilled) (subclass 457) visa” document.

We spoke to an immigration auditor, on condition of anonymity, who told us that this requirement is checked when companies make subsequent applications to bring workers in on 457 visas.

There may also be random checks made by immigration officials to ensure the requirement to train Australian citizens and permanent residents.