Economic & Business Laws — Australia

Economic and Business Laws for Immigrants to Australia

*Note: Australian immigration and business law changes frequently. Always verify current details with the Department of Home Affairs, ASIC, FIRB, and a registered migration agent or lawyer before making decisions.*

1. Right to Work by Visa Type

Permanent Visas (Unrestricted Work Rights)

• Skilled Independent (subclass 189), Skilled Nominated (190), Skilled Work Regional (191): Full, unrestricted work rights
• Employer Nomination Scheme (186): Full work rights, though initially tied to sponsoring employer during transition period
• Partner visas (100, 801): Full work rights once permanent stage granted

Temporary Visas (Conditional Work Rights)

• Temporary Skill Shortage (subclass 482): Work limited to sponsoring employer and nominated occupation; changing employers requires new nomination
• Working Holiday Visa (417/462): Work rights capped at 6 months per employer (unless in specified regional/critical sectors)
• Student visa (500): Capped at 48 hours per fortnight during term time (reinstated cap as of July 2023, after temporary removal during COVID/labor shortages—verify current cap), unlimited during scheduled breaks
• Bridging visas (BVA, BVB, BVC): Work rights vary; often granted if substantive visa held work rights, but BVC generally more restrictive
• Visitor visas (600): Generally no work rights (specific business/family stream exceptions exist)
• Temporary Graduate visa (485): Full work rights, no employer restriction

Employer-Sponsored Restrictions

• 482 and 186 visa holders are legally tied to their sponsoring employer for that specific position; unauthorized work for other employers breaches visa conditions and risks cancellation
• Visa holders can apply to transfer sponsorship, but new employer must lodge new nomination

2. Starting a Business as a Foreigner

Visa Options for Business Owners

• Business Innovation and Investment visa (subclass 188): Requires state/territory nomination, minimum net assets (typically AUD 1.25M+ depending on stream), and business plan
• Global Talent visa (subclass 858): For high-value entrepreneurs in target sectors
• Permanent visas holders and citizens: No restriction on business ownership

Temporary Visa Holders Starting Businesses

• Visa holders on visas *without* work rights (e.g., visitor visa) generally cannot operate a business
• Student visa holders can technically register a business, but actual operational work counts toward the 48-hour fortnightly cap
• 482/186 sponsored visa holders generally cannot run a side business without breaching visa conditions

Business Registration Requirements (all founders, regardless of citizenship)

• Australian Business Number (ABN): Required for most business activity; non-residents/foreign visa holders can apply but may need additional identity verification
• Company registration via ASIC: A proprietary limited company (Pty Ltd) requires at least one director who ordinarily resides in Australia (this residency rule is critical and often overlooked)
• Tax File Number (TFN): Needed for tax reporting
• GST registration: Mandatory if turnover exceeds AUD 75,000/year

3. Foreign Investment Restrictions

Foreign Investment Review Board (FIRB)

• Foreign persons (including temporary visa holders) must generally obtain FIRB approval before:
• Purchasing residential real estate
• Acquiring interests in Australian businesses/land above certain thresholds
• Investing in agricultural land (threshold ~AUD 15M cumulative, lower for certain countries without FTA concessions)

Key Thresholds (subject to frequent change—verify current figures)

• Non-sensitive business acquisitions: monetary screening thresholds vary by country (FTA partners often have higher thresholds, e.g., ~AUD 1.427B for some, vs ~AUD 315M for non-FTA countries) — these figures change regularly
• Fees: FIRB application fees are tiered by property/transaction value, ranging from a few thousand dollars to over AUD 100,000+ for high-value transactions
• 2024 policy shift: Australia introduced higher fees and stricter scrutiny on foreign purchases of established dwellings as part of housing affordability measures — confirm latest settings

Restricted/Sensitive Sectors

• Media, telecommunications, defense, critical infrastructure, and agricultural land face additional scrutiny regardless of value
• National security concerns can trigger review even below standard thresholds

4. Property Ownership Rights

Non-Citizens (Temporary Residents)

• Established (existing) dwellings: Generally prohibited from purchasing as investment; can only buy for use as principal residence while visa is valid, and must sell within a set period (typically 3 months) after leaving Australia or visa expiry — rules tightened in 2024/2025, verify current restrictions
• New dwellings/off-the-plan: Permitted with FIRB approval (encourages new housing supply)
• Vacant land: Permitted for development purposes with conditions (must build within set timeframe)
• Foreign Investment Fee: Additional stamp duty surcharges apply in most states (e.g., NSW, VIC, QLD impose 7-8% foreign purchaser surcharge on top of standard stamp duty)

Permanent Residents

• Generally treated similarly to citizens for property purchases—no FIRB approval required for established dwellings
• May still face state-based foreign purchaser surcharges in some circumstances depending on state definitions of "foreign person" (varies by state—some states apply surcharges based on citizenship status rather than residency)

Citizens

• No restrictions

5. Banking Access for New Immigrants

Account Opening

• Major banks (Commonwealth Bank, Westpac, ANZ, NAB) allow account opening before arrival (typically within 3 months of planned arrival) with passport identification alone
• Standard 100-point identification check required once in Australia (passport, visa grant notice, proof of address)

Practical Considerations

• Tax File Number (TFN): Should apply immediately upon arrival (via myGov/ATO) — needed to avoid maximum tax withholding rate (up to 47%) on income
• Credit history: Immigrants start with no Australian credit history; this affects:
• Credit card limits (often low initially)
• Home loan serviceability (some lenders offer specific "new to Australia" loan products, often requiring larger deposits, e.g., 20%+ for temporary residents)
• Superannuation: Employers must contribute (currently 11.5%, rising incrementally to 12% by July 2025 — verify current rate) to a super fund; temporary residents can claim this back via Departing Australia Superannuation Payment (DASP) when leaving permanently (subject to withholding tax, often 65% for working holiday makers—verify current rate)

6. Labor Law Protections for Immigrant Workers

Universal Protections (Regardless of Visa Status)

• Fair Work Act 2009 applies to all workers in Australia, including those without valid work rights (illegal work does not void statutory protections against exploitation)
• Minimum wage protections apply: National Minimum Wage (~AUD 24.10/hour as of mid-2024, verify current rate — updated annually each July)
• Protection from unfair dismissal (after minimum employment period, typically 6 months for large employers, 12 months for small business)
• Superannuation guarantee applies regardless of visa status
• Workplace health and safety laws apply universally

Specific Protections for Visa Holders

• Fair Work Ombudsman: Provides free advice/enforcement; has specific protections and anonymous reporting for visa holders fearing visa cancellation if they report exploitation
• Assurance Protocol: Introduced to protect exploited visa holders from visa cancellation if they come forward about employer misconduct (announced ~2023, part of migrant worker exploitation reforms — verify current status/details)
• Sponsorship obligations: 482/186 sponsors must pay at least the Temporary Skilled Migration Income Threshold (TSMIT) — approximately AUD 73,150 as of 2023/24, increased and indexed—verify current figure, plus market salary rate
• Employers found underpaying or exploiting visa holders face sanctions including sponsorship bans, fines (which can exceed AUD 100,000+ per contravention for corporations), and potential criminal charges under the Modern Slavery Act 2018 framework and forced labor provisions

Common Exploitation Risks to Know

• Visa condition breaches (e.g., working beyond hour caps) technically make the worker's presence "unlawful" for that work, but this does not eliminate the employer's obligation to pay minimum entitlements
• Illegal salary "cash-back" arrangements (where sponsors demand return of wages) are unlawful and reportable
• Unpaid trial shifts, unlawful deductions for visa sponsorship costs, or below-minimum piece rates (common in agriculture/hospitality) are frequent violation areas

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Key Recommendations

• Consult a registered migration agent (MARA-registered) for visa-specific work rights questions
• Verify FIRB thresholds and fees directly via firb.gov.au before any property/business transaction, as these change frequently (often annually)
• Check state-specific stamp duty surcharges, as these vary significantly (NSW, VIC, QLD, WA all have different foreign purchaser rules)
• Contact the Fair Work Ombudsman (13 13 94) for free, confidential advice if experiencing workplace exploitation—regardless of visa status
• Confirm current wage thresholds, super rates, and visa income requirements via Department of Home Affairs and Fair Work Australia, as these are indexed and updated regularly (often each July)

More about immigrating to Australia