subclass 186

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.

 

Changes to Australian Employment Visas - Permanent Visas

Also announced on 18 April 2017 are changes to the Employer Nomination Scheme (subclass 186) visa ('ENS' visa) and Regional Sponsored Migration Scheme visa (subclass 187) visa ('RSMS' visa).

While the changes will mainly impact the ENS and RSMS, future applicants for the Skilled visas (subclass 189, 190 and 489) may also be affected by changes to the occupation lists.

 

Changes from April 2017

From 19 April 2017, for new applicants for permanent employer sponsored skilled visa programmes:

Occupation lists: The Consolidated Sponsored Occupation List (CSOL) will be significantly condensed, with 216 occupations removed, and access to 24 occupations restricted to regional Australia (e.g. occupations relating to farming and agriculture). The CSOL currently underpins the Direct Entry stream of the ENS visa.

The CSOL will also be renamed the new Short-Term Skilled Occupations List (STSOL) and will be updated every six months based on advice from the Department of Employment.

The other occupations list used for skilled migration, the Skilled Occupations List (SOL) will be renamed the new Medium and Long-term Strategic Skills List (MLTSSL).

 

Changes from July 2017

From 1 July 2017, for permanent employer sponsored skilled visa programmes:

Occupations lists: The STSOL will be further reviewed based on advice from the Department of Employment. The MLTSSL will be revised based on outcomes from the Department of Education and Training’s 2017-18 SOL review.

English language requirements: A requirement of an International English Language Testing System (IELTS) (or equivalent test) score of 6 in each component.

Age: A maximum age requirement of 45 at the time of application will apply to Direct Entry stream applicants. A maximum age requirement of 50 at the time of application will continue to apply to Temporary Residence Transition stream applicants.

 

Changes by December 2017

Before 31 December 2017, for permanent employer sponsored skilled visa programmes:

The Department of Immigration and Border Protection (the Department) will commence the collection of Tax File Numbers for these visa holders, and data will be matched with the Australian Tax Office’s records to ensure that visa holders are not paid less than their nominated salary.

The Department will commence the publication of details relating to sponsors sanctioned for failing to meet their obligations under the Migration Regulation 1994 and related legislation.

 

Changes from March 2018

From March 2018, for ENS and RSMS:

For the ENS and RSMS visa: The MLTSSL will now apply, with additional occupations available to support regional employers for the RSMS.

Minimum market salary rate: Employers must pay the Australian market salary rate and meet the Temporary Skilled Migration Income Threshold, currently $53,900.

Residency: The permanent residence eligibility period will be extended from two to three years.

Work experience: At least three years’ relevant work experience.

Age: All applicants must be under the maximum age requirement of 45 at the time of application.

Training requirement: a strengthened training requirement for employers to contribute towards training Australian workers.

 Source: DIPB