A CEDA REPORT looking at the contribution of permanent skilled migrants highlights the unrealised potential in newcomer communities and the need to provide income support and access to family tax benefits earlier in the settlement journey, according to Australia’s largest refugee and migration resettlement support provider, Settlement Services International (SSI).

Nearly a quarter of permanent skilled migrants in Australia are working in a job beneath their skill level, the Committee for Economic Development of Australia (CEDA)  found in a report released this week, which made a series of recommendations to improve outcomes for migrants and the economy.

The report’s findings point to the unrealised potential in migrant communities and aligns with anecdotal reports from the 37,600 people SSI supports each year, said CEO Violet Roumeliotis.

“The main barriers facing migrant and refugee jobseekers include insufficient Australian work experience, limited support with resumes and interview skills, and limited English language proficiency," Ms Roumeliotis said.

“We believe this challenge requires a number of solutions. One is tailored job seeker services for people of culturally and linguistically diverse (CALD) backgrounds that address the unique barriers they face and support them across their employment journey.”

The CEDA report recommended the establishment of a new government-regulated online skills-matching jobs platform that would allow permanent skilled migrants to register their skills, and let accredited employers hire migrants from within the platform.

The report recommends the need to reduce newly arrived resident’s waiting period for unemployment benefits from four years to six months.

“This is consistent with a recommendation of the Productivity Commission, which noted that a reduced waiting period would likely improve overall community outcomes in terms of social participation and integration, employment and health,” Ms Roumeliotis said.

“Reducing the waiting period would give permanent skilled migrants a better chance to find a job that maximises their contribution. Research suggests increases to the waiting period since the late 1990s have exacerbated skills mismatch, while delivering only modest annual savings to the Federal Budget.”

Ms Roumeliotis said the Australian Government rightly waived these waiting periods until the end of March 2021 as part of its response to the COVID-19 pandemic.

“This forward-thinking is a great illustration of the dual nature of this pandemic. It has created huge challenges but it also offers us opportunities. In this case, it is the opportunity to rethink our approach to migration, taking into account new research like this, which illustrates the economic benefit of improving some areas of our migration program,” she said.

“I would urge our government to consider this report’s recommendations in making a decision about where and how we resume migration when it is safe to do so.”

Along with reviewing the waiting period for employment-based income support, SSI also advocates for the removal of the one-year waiting period for new permanent residents to access family tax benefits that help with child-care and school costs should also be considered. These waiting periods were waived during COVID-19 emergency measures but are set to resume on April 1, 2021.

 About SSI

Settlement Services International is a community organisation and social business that supports newcomers and other Australians to achieve their full potential. SSI works with all people who have experienced vulnerability, including refugees, people seeking asylum and culturally and linguistically diverse (CALD) communities, to build capacity and enable them to overcome inequality.

www.ssi.org.au

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THE Australian Small Business and Family Enterprise Ombudsman Bruce Billson said small businesses in regional and remote areas of Australia now have more reasons to digitise, with NBN Co announcing expanded coverage and lower wholesale prices.

NBN Co said its Business Satellite Service has been improved to cover Australia’s mainland and large surrounding islands, with wholesale prices significantly reduced.

“Fast and reliable internet is an essential service to most small businesses and especially those in regional and remote part of the country,” Mr Billson said.

“Equally, it’s an incentive to small businesses to improve their online presence, particularly at a time when more consumers are shopping online.

“The latest data from the Australian Bureau of Statistics shows online sales rose by more than 70 percent in December compared to the same period a year ago.

“A survey of more than 1000 Australians conducted on behalf of NBN CO that 70% have been consciously supporting local businesses online. However, it also revealed that two-thirds of respondents were restricted by the limited digital presence of those businesses," Mr Billson said.

“Many small businesses have adopted better use of mobile and internet technologies as a result of the COVID crisis and we want to see that trend continue.

“The reality is that digitisation is now crucial to being truly competitive. That means everything from having a website, to being e-commerce enabled and targeting customers through social media platforms," he said.

“SMEs with advanced levels of digital engagement are 50 percent more likely to grow revenue and earn 60 percent more revenue per person, according to MYOB research.

“There is every reason for small businesses to embrace digitisation and plenty of free online resources which can be easily accessed via My Business Health.”  

www.asbfeo.gov.au

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A NEW REPORT FROM the Australian Energy Market Operator (AEMO) forecasts there will be no gas shortfall in the coming years, putting another major dent in the Federal Government’s plans to support new gas projects.

The Gas Statement of Opportunities suggests that the Port Kembla import terminal will ease supply concerns, and highlights how measures such as electrification of homes and businesses are further reducing gas demand. It comes after AEMO found Australia does not need any new gas. 

“The Morrison Government’s ‘gas-fired recovery’ fantasy is just that, an expensive, dangerous, and unnecessary fantasy,” Climate Council senior researcher, Tim Baxter said.

“There will be no shortfall, and in the electricity sector, gas is already being out-competed by clean, affordable renewable energy. In the next few years, electrification and efficiency will also lead to a decline in gas use in other areas such as manufacturing and industry,” Mr Baxter said.

A recent Climate Council analysis found that gas generation in Australia’s largest electricity grid fell by 19 percent in 2020 while solar and wind had a record year despite the COVID-19 pandemic.

“Gas is a fossil fuel driving climate change. We’ve just been hit with devastating floods, which is the latest in a line of extreme weather events exacerbated by climate change. We’ve also experienced record drought, the Black Summer bushfires and scorching heatwaves,” Mr Baxter said. 

“Gas is also driving up power prices, and prices for our manufacturing industries. It has no role to play in our economic recovery.

“As the sunniest and one of the windiest places on the planet, Australia should be cashing in on its renewable advantage, and in doing so, rapidly reducing greenhouse gas emissions. It’s a win-win,” he said. 

About the Climate Council

The Climate Council is Australia’s community-funded climate change communications organisation. It provides authoritative, expert and evidence-based advice on climate change to journalists, policymakers, and the wider Australian community. www.climatecouncil.org.au  Social media: facebook.com/climatecouncil and twitter.com/climatecouncil

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INVESTMENT manager Atlas Advisors Australia is calling for better use of migrant investment to fill critical gaps in Australian venture capital and industry.

The proposal is part of a submission to the Department of Home Affairs Discussion Paper on the Complying Investment Framework (CIF) for the Business Innovation and Investment Program (BIIP).

Executive chairman of Atlas Advisors Australia, Guy Hedley said early/seed-stage venture capital had taken a heavy and serious hit in recent years. 

Statistics reveal a 45 percent decline in the number of early-stage deals in Australia.

“This has dire ramifications for the medium and longer-term health of Australia’s economy, future jobs and industry growth,” Mr Hedley said.

“It also affects our global competitiveness when it comes to patents and intellectual property.”

Mr Hedley said the Significant Investor Visa program should be used to plug holes in critically needed venture capital funds.

The Significant Investor Visa currently directs more funds towards well-developed markets such as emerging listed companies, property and bonds, than it does to venture capital. This is despite venture capital funding better stimulating the growth of the economy because of the shortages in seed-stage venture capital start-up funding.

Mr Hedley said the allocation towards venture capital should be increased from 10 percent to 20 percent, while the mandatory investment period should be extended from four years to five years.

“Increasing the allocation to venture capital would provide more for early-stage and seed investment deals,” Mr Hedley said.

“This would materially increase jobs, wealth, industry and patent creation – making it a far better deal for Australia.”

Chief executive officer of Uniseed, Australia’s longest running university venture fund, Peter Devine said the Business Innovation and Investment Program was integral to supporting the commercialisation and translation of university research in recent years.

Dr Devine said since starting in late 2000, Uniseed had seeded and supported 57 start-ups borne out of Australian research organisations. These now employed well over 600 people.

Uniseed first partnered with Atlas Advisors Australia in 2018, and later through Stoic Venture Capital. They co-invested in 17 early-stage companies originating from Australian research organisations in drug development, medical devices, agricultural robotics and other technologies, and these companies have gone on to raise more than $300 million in investment and grant funding.

Dr Devine said funds allocated to venture capital from the Business Innovation and Investment Program had a huge impact, providing early-seed funding for university spin-off companies, and with funds participating in subsequent funding rounds, this had assisted in raising funds from other investors in later rounds.

Increasing the allocation towards venture capital under the Business Innovation and Investment Program could fill gaps in desperately needed funding for universities to commercialise more vital research.

It also accords with the Australian Government’s objective to increase the commercialisation of university research using a new model to be introduced by the end of the year.

“Despite record venture capital raisings in 2020, nearly all venture capital funds operating in Australia do not invest in technologies at seed-stage in research organisations,” Dr Devine said.

“At the time of invention and subsequent patenting, nearly all technologies are too early to interest external companies or most investors.

“These technologies require additional seed funding to get to a stage where “they become investible” so other investors are interested, colloquially known as getting across the ‘valley of death’.”

Statistics

These statistics show that the number of early-stage funding deals in Australia has declined significantly from around:

• · $320 million in 2016-17
• · $270 million 2017-18
• · $120 million in 2018-19

About Atlas Advisors Australia

Atlas Advisors Australia is a leading funds manager and investment advisory business, operating between China and Australia offering a wide range of financial services and wealth management solutions. With operations in Sydney, Melbourne in Australia and Hong Kong SAR and Shanghai in China, Atlas is able to support investors in all China and Australia locations. Atlas Advisors Australia AFOF is the major limited partner in Stoic Venture Capital. www.atlasadvisors.com.au

About Uniseed

Formed in 2000, Uniseed is Australia’s longest running university commercialisation fund. Uniseed has supported a number of highly successful companies arising from partner research organisations, such as the University of Melbourne’s Fibrotech (sold to Shire in 2014) and Hatchtech (sold to Dr Reddy’s Laboratories in 2015); the University of Queensland’s Spinifex (sold to Novartis in 2015); and the University of NSW’s Smart Sparrow (sold to Pearson in 2019) and Exonate (major research collaboration with J&J announced in 2020).  Uniseed is a mutual fund, owned by research organisations, for research organisations. The fund facilitates the commercialisation of its research partners’ most promising intellectual property and secures targeted investment in resulting products and technologies. www.uniseed.com