Global Talent Scheme's Startup Stream

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The Global Talent — Employee Sponsored (GTES) is a visa scheme aimed at high skilled workers for startups. It was developed into a permanent program from the Global Talent Scheme (GTS) visa pilot.
What are the main aims and objectives?
The main aims and objectives of the Global Talent Employer Sponsored (GTES) program in Australia are to attract highly skilled migrants with cutting-edge skills into niche occupations that cannot be filled by Australian workers or through the standard 482 program. The program seeks to help innovate established businesses and support the growth of startups in the country. By bringing skilled migrants with expertise in future-focused fields, the GTES program aims to benefit both the businesses and the Australian economy. By bringing in skilled individuals, the Startup Stream helps accelerate growth for fast-growing startups and technology businesses in Australia, fostering innovation and boosting the economy. 
How does the program work?

The overall GTES allows established-businesses 20 visas per year that are much more flexible than anything offered by the existing Temporary Skill Shortage Visa (TSS). Hires under the GTS visas do not have to match an established occupation list, and there is a permanent residency path for them to take. 

The GTES has a special carve-out specifically for startups trying to recruit overseas talent.  This stream has softened requirements across the board, reducing, for example, the salary threshold to a package of $80,000, and recognizing equity as a legitimate salary component for international recruits. It is limited only to startups. Under this unique stream of the GTES the talent needs of startups are addressed as follows: 

  • Companies will have to apply for a one-off assessment to qualify as 'startups'. 

  • Initial candidates for the scheme will be funded scale-ups, with the definition of a startup broadening as the pilot progresses. 

  • Startups will then have access to 5 high priority visas per year which don't need to match up to existing skills shortage lists. 

  • These visas will last 4 years, and will include a path to permanent residency for visa holders. 

  • Startup visas will be fast-tracked, with processing to take between 17 and 30 days. 

  • Startups will need to show they've tried to hire for particular roles in Australia first. 

  • Pilot set to last 1 year initially, with a view towards making the scheme permanent in 2019 if successful. 

The startup stream is limited to 5 visas per year, but startups that are able to grow and scale will be able to transition to the established-business stream as their staffing requirements increase. Startups will still be able to apply for regular Temporary Skill Shortage Visa (TSS), so the 5 extra GTES visas are specifically there to plug gaps and recruit people who are tricky to hire under the current system. 

What is the overall cost?

The Australian government does not publish the exact cost of running the GTES. However, there are no major costs associated with visa schemes outside of the administrative costs of processing applications, conducting background checks and maintaining the program’s infrastructure. Indeed, it is highly likely that any costs that do exist will be outweighed by the economic benefits associated with the program. Furthermore, startups must pay fees that can reach $10,000. These fees are likely to help offset any administrative costs associated with processing and evaluating applications. 

How was it implemented?

After a long campaign from business, the Australian federal government agreed to create a new scheme to allow businesses some additional flexibility in recruiting key roles from overseas. Advocates for the startup sector, including StartupAUS, made the case that startups were characteristically different - it was impossible for them to qualify as established businesses because they tended to be young, and they would struggle to meet the minimum income threshold for visa applicants ($145,400) - in part because startups typically use equity as a significant part of their remuneration packages. The Department of Home Affairs listened, and has made a unique stream of the GTS specifically for startups, which was launched on July 1, 2018. 

In August 2019, Immigration Minister David Coleman announced that Australia's global talent pilot scheme will become a permanent feature of the country's migration framework, a decision supported by the Startup Advisory Panel. 

What impact has been measured?

The results of the pilot scheme found that: 

  • Due to lengthy processing times, GTS had only 70 approved applicants  

  • This represented 0.085% of visas granted in July 2018-2019 

  • By contrast 80,000 applications were received for Temporary Skill Short 482 visas during the same period 

  • Only 5 companies received approval through the ‘startup’ stream  

The results of the pilot indicate that the program had not yet had a significant impact on supporting high-growth startups bring skilled migrants to Australia. There is currently no information available on the performance of the program since it was developed into GTES. 

What lessons can be learned?

The news that the pilot GTS went from pilot to permanent came to the surprise of some ecosystem stakeholders who saw mixed results in the pilot: of the total of 23 businesses that signed up in the first year, the majority were established businesses, and just five were startups. Optimistic stakeholders, however, argued this measure was a positive step for young technology startups. They also suggested that policy tweaks can unlock the scheme's full potential, such as reducing the application fees which can reach $10,000 and can be prohibitive for startups. 

CURATED BY

Alex McCauley

CEO
StartupAUS
Australia