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Proportion of Indian IT workers on 457 visas on rock bottom pay triples

The proportion of IT professionals from India granted 457 visas and paid base salaries of $53,900 or less, much lower than experienced Australian IT professionals, has tripled under the Coalition government, a study has found.

The Australian Population Research Institute has found that IT professionals are the largest single occupation represented in the 457 program and more than three-quarters are Indian nationals who mostly work in Sydney or Melbourne.

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A win for Aussie workers

The Turnbull government has changed 457 visa conditions, aiming to improve the job prospects of unemployed Australians. Courtesy ABC, Sky.

The findings of the report Immigration Overflow: Why it Matters were released on Friday at the same time as the federal government announced a review of the skilled migration list.

Immigration and Border Protection Minister Peter Dutton has tasked the Ministerial Advisory Council on Skilled Migration to review the skilled migration program to ensure it better reflects "genuine" labour market needs.

Mr Dutton said the review of the Consolidated Sponsored Occupational List was part of reforms to "ensure that Australian workers have priority".

He said Labor's "mismanagement" resulted in the 457 program growing from 68,000 to more than 110,000 primary visa holders.

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"It is important that the integrity of the list be maintained to ensure that skilled migration meets the genuine needs of Australia's economy and does not displace Australian workers," Mr Dutton said.

"Only the Coalition can be trusted to put Australian workers first."

Mr Dutton said former Labor immigration minister Chris Bowen included hundreds of occupations on the skilled migration list, regardless of whether they were in shortage or not.

"Labor holds itself out to be the party of the worker, but in reality the modern day Labor Party has consistently shown a disregard for Australian workers and taxpayers in its big migration and open border policies," Mr Dutton said.

The research by Bob Birrell, Ernest Healy and Bob Kinnaird from The Australian Population Research Institute has found the proportion of Indian IT professionals hired as analysts and programmers on base salaries at or below the minimum of $53,000 a year has increased from 7.6 per cent between 2012 to 2013 under Labor to 27.7 per cent in 2014 to 2015 under the Coalition.

In 2014 to 2015, 61 per cent of the Indian 457 IT professionals were paid a base salary of less than $70,180, which is $30,000 below average Australian IT professional salaries.

The report says most Indian nationals working in the IT industry in Australia are sponsored by Indian IT companies and are often transferred within the company from India to Australia.

"They have been successful in winning a major chunk of Australia's IT consulting work on the basis of these 457 visa holders," Mr Kinnaird said.

"They have succeeded in part because they are paying these professionals much lower salaries than the market rate for comparable IT professions in Australia."

Mr Kinnaird said the 457 minimum salary is set at $53,900 a year, almost the same as the median starting salary for Australian ICT graduates under the age 25.

The skilled migration list covers more than 650 occupations. The list was introduced in 2012 by the former Labor government and applies to temporary and permanent employer sponsored visas, including the 457 visa.

Earlier this week, Fairfax Media reported that the NSW government was hiring IT professionals on 457 visas in preference to Australian workers at the same time it outsourced public services.

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