Change to Employer’s Obligations – subclass 457, 186 and 187 visas

Current Training Benchmarks imposed on employers sponsoring workers for subclass 457 and subclass 186/187 visas will soon be replaced with a levy.

“Training Benchmarks” are requirements that employers must satisfy to become an approved sponsor.

Currently, businesses can satisfy this requirement by demonstrating:

a)       Recent expenditure by the business of at least 2% of the annual payroll of the business is paid in to an industry training fund; or

b)      Recent expenditure by the business of at least 1% of the annual payroll of the business paid for the provision of training Australian employees of the business.

 

From March 2018, businesses will instead pay a levy into the ‘Skilling Australians Fund Levy’.

For each employee on a Temporary Skill Shortage visa (which is the visa replacing the subclass 457):

·         businesses with a turnover less than $10 million per year will pay $1200 per year.

·         businesses with a turnover more than $10 million per year will pay $1800 per year.

For periods of less than a year, the full levy will be charged.

 

For each employee being sponsored via the Employer Nomination Scheme (subclass 186 visa) or the Regional Sponsored Migration Scheme (subclass 187 visa):

·         businesses with a turnover less than $10 million will make a one-off payment of $3000.

·         businesses with a turnover more than $10 million will make a one-off payment of $5000.

 

Source: Migration Institute of Australia & DIBP.