Changes to the Pacific Australia Labour Mobility Scheme

The Pacific Australia Labour Mobility Scheme (PALM Scheme) is the Australian temporary migration program created to address shortages in low, semi and unskilled positions in regional and rural Australia.  Specifically, the PALM Scheme permits approved employers to recruit workers for seasonal jobs. This assists with labour shortages while allowing Pacific and Timor-Leste workers to develop their skills and earn income to support their family and communities.

Background

The predecessor programs to the PALM Scheme (the Seasonal Worker Program and Pacific Labour Scheme) were repealed by the Migration Amendment (Pacific Australia Labour Mobility) Regulations 2022 (Cth) and replaced by the PALM visa stream through the Australian Government Department of Home Affairs.  The subclass 403 Temporary Work (International Relations) Visa – Pacific Labour Mobility stream came into effect on 4 April 2022.

The PALM Scheme allows Australian businesses to employ Pacific Island and Timor-Leste workers subject to compliance with the terms and conditions contained in a Deed entered into between the employer the Commonwealth (and incorporates the PALM Scheme Guidelines).  Through the PALM Scheme, approved employers can employ short-term seasonal workers for up to 9 months or long-term workers for between 1 to 4 years. 

What are the Changes?

The Federal Government committed to a range of changes to the PALM Scheme in the FY24 Budget.  The intention of the key changes was to strengthen worker protections by increasing oversight, protecting worker superannuation, allowing workers to access Medicare and enabling workers to achieve formal qualifications.  These changes expanded the PALM Scheme and were effective from 26 June 2023. 

The key changes are summarised as follows:

  • the Department of Employment and Workplace Relations will be responsible for oversight of the PALM Scheme and will be allocated an additional $168.1 million over four years (the Fair Work Ombudsman and Australian Border Force will also receive additional funding);

  • the Government will support more than 1000 PALM workers to attain formal qualifications over four years;

  • long-term PALM Scheme workers are able to apply to have bring their families to Australia from July 2023;

  • the 200 families participating in the PALM Scheme family accompanied pilot will be able to access Medicare; and

  • additional funding and resources will be provided to the Australian Taxation Office to assist workers to submit their Departing Australia Superannuation Payment claim to increase access to superannuation.

There have also been significant changes to the minimum working conditions which are reflected in the updated Deed and Guidelines.  Specifically:

  • from the earlier of 1 October 2023 or the arrival of new recruits (for long term workers) – full time hours must be offered;

  • from the earlier of 1 October 2023 or the arrival of new recruits (for long term workers) – if less than 20 hours are offered a week, the employer must cover the cost of accommodation and transport;

  • from the commencement of the Deed until 31 December 2023 – approved employers must offer short-term workers at least 30 hours of work per week averaged over the worker’s placement;

  • from 1 January 2024 to 30 June 2024 – approved employers must offer short-term workers at least 30 hours per week averaged over four week periods;

  • from 1 July 2024 – approved employers must offer short-term workers 30 hours of work per week;

  • PALM workers must be paid in line with other workers at the same workplace doing the same job; and

  • approved employers must provide workers with accommodation (full duration for short term workers and first 12 months for long term workers) and transportation.

Impacts of these Changes

The response to these changes has been varied, with an expectation of both positive and negative impacts.  For example, these reforms contain increased protections for workers which were not previously provided in the PALM Scheme.  However, there are broader concerns that employers may not be able to guarantee payment for 30 hours per week and ultimately withdraw from the PALM Scheme. 

It is also imperative that approved employers understand the interaction between their obligations under the PALM Scheme framework and any applicable award.  For further advice on the impact of these changes, please contact:

Jasmine O’Brien
Principal
T +61 3 9611 0149
jobrien@sladen.com.au

Jordan Bauer
Senior Associate
T +61 3 9611 0130
jbauer@sladen.com.au

Jordan Bauer