In an action labelled "ludicrous", the NSW Labor Party has implemented a new policy which charges overseas IT professionals thousands of dollars to educate their children while working in Sydney.
"It's a crazy concept. It's difficult enough to attract people to Australia as it is. Sydney needs to maintain its pre-eminent position, we can't abuse it," Director of Morgan & Banks Ian Burns said.
While all other nations are encouraging IT professionals to work freely within a region to boost competitiveness, the NSW Labor Government has implemented a policy, which charges IT professionals on long term business visas to educate their children.
According to Burns, for each child being educated in NSW, the government charges the IT worker AU$4,500 per school year. This charge is in addition to paying taxes, which are normally used to fund public education.
A spokesperson for the federal Minister of Communications, Information Technology and the Arts, Senator Richard Alston, said "we've already streamlined the process. The [Federal] Government has placed high priority on encouraging IT professionals to assist them in coming to Australia."
"To put a levy on IT professionals who are already paying taxes sends a poor message, and shows a lack of understanding about how competitive the global market for IT professionals is," he said.
Alston's office believes the levy doesn't assist IT professionals coming to Australia.
"It deters them, while other regions are making it easier for IT professionals."
The Labor Party was unavailable for comment.
Morgan & Banks' Manager of Global Services, Steven Low, believes the decision to impose a levy on IT professionals coming to NSW to work undermines the country's ability to remain competitive in a global market, leading to a lower standard of living in the long term.
"How do we expect to attract people under those circumstances?"
According to Low, the policy changes were not announced to businesses or to the federal government. The decision was an internal review of the NSW Education Department.
Furthermore, Low believes the decision will lead to a loss of business to other states within Australia.
"The Government has streamlined the immigration process, but at state level it is seriously undermining it,"
"It's a reason for IT professionals not to set up a business in NSW, why would you set up here? It's a ludicrous expense," Low said.
