Major visa and pimp changes

The Aussie immigration office has changed all the rules regarding 457 visa holders like myself. A 457 visa is a long term (4 years) work visa.

They decided that 457 holders can no longer be managed by one agency. Until now, I had two pimps working for me (not by choice). It is a bit complicated.

IBM uses a small number of established personell/headhunter companies to find them qualified contracters. The firm runs the ads, screens applicants, etc. IBM pays the firm and the firm pays the contractor's salary (the contractors invoice, technically).

The firm take a cut of the money. They pay the contractor X bucks an hour, and the firm charges X+Y bucks to IBM. The firm gets to keep the Y.

Now for 457 visa holders, it is a little more complicated. In order to maximize the tax benefits for being a long term overseas contractor, they farm out to specialized firms that understand this niche business. There are only a small number of them in Australia. Even though that also get a cut of my pay, the tax benefits to me pays it and gives me a little more in my pocket.

So, the agency hired by IBM then hires this 457 specialty agency to hire me, the overseas contractor. IBM pays the first agency, whom I call big pimp, X+Y dollars an hour. Big pimp then pays the specialty agency (whom I call Little Pimp), X dollars per hour and they in turn pay me X-Z dollars per hour after takinh their cut.

However, the tax benefits they get me cut my taxible income so that the taxes I have to pay are less that their cut, giving me a profit.

Technically, little pimp is my visa sponsor. They are responsible for me. I work for them. They pay my salary.

Confusing, eh? The Australian Immigration office thought so too. It turns out that some small agencies where abusing this structure to get Indian and Pakastani "programmers" into Autralia, then not getting them work but charging them handsome fees for this. They would then become illegal immigrants, which was fine with them. At least they got inside Australia.

So they changed the rules. In January 2004 they ruled that there can only be one agency between the employer and the contractor. I had to fire little pimp and get big pimp to take over as my sponsor.

That was not as easy as it sounds. Since little pimp was my visa sponsor, they have to give up my sponsorship. What this means is that I have start all over again and re-apply for permission to move to Australia to work. Given the political climate, the rules had changed since I was first granted a visa back in late 2001.

In addition, I had to find a pimp that would both sponsor me and give me some, if not all of the tax benefits I enjoyed under the old arrangement. Easier said than done.

So I shopped around. There are about 4 agencies in Perth that can do this. I interviewed with all of them. I finally settled on a small outfit called Icon Recruiting. Nice guys. I felt comfortable and I liked their terms.

Next hurtle was to get a new visa. My current visa was valid until December 2005. The immigration office cancelled all 457 visa effective Jan 31, 2004. That meant that unless I got renewed, I was going to loose my visa.

I hired the same firm in Syndey that got me my last visa to help me again. They do all the prep work and are really worth the fee.