Meeting the Training Australians requirement will change from March 2018.
During the Budget announcement last May, the government announced the creation of the Skilling Australians Funds, which according to the Department of Education will “supersede funding provided under the National Partnership Agreement on Skills Reform, which expired 30 June 2017.”
It will support apprenticeships and traineeships.
The Skilling Australians Fund will be the fund to which employers make a payment to meet the Training Australians requirement when they want to sponsor workers on a 457 visa or nominate them for a permanent employer visa.
Historically and currently, employers can meet this requirement by showing evidence that the sponsoring business invests in Training for their Australian staff in many ways, such as:
– by paying for external training to staff members so they can undertake a formal course of study, be it face-to-face or online;
– by employing formal trainees and/or apprentices;
– by sending staff to conferences, professional development courses and the like;
– by employing someone to act solely as a trainer to the rest of the staff;
– by making a contribution to an industry fund in the same field as the business operates, such as a TAFE Institute.
But from 1st March 2018, subject to the passing of legislation, the above will not be accepted anymore and employers wanting to sponsor or nominate overseas workers will have to make payments into a newly established Skilling Australians Fund.
So a business wanting to sponsor a worker on a temporary sponsorship visa, will have to make a payment to the Skilling Australians Funds when nominating someone. At that stage, there will be no Sponsorship 457 visa anymore, and employers will be nominating workers for the new Temporary Skill Shortage (TSS) visa.
The payment/contribution has been established at $1,200.00 per employee, per year the person holds the visa. For businesses turning over $10 million, the contribution will be $1,800.00 per employee per year.
If a business wants to nominate a worker for a permanent employer visa, such as the ENS 186 or the RSMS 187 they will also be required to make a one-off payment into the Skilling Australians Fund to meet the Training requirements for the nomination application that is involved in the process.
That payment/contribution has been established at $3,000.00 per employee – this is a one-off payment as the person nominated will obtain permanent residence and cease being a sponsored temporary resident.
Businesses turning over $10 million will be required to pay $5,000.00 instead.
We will keep you posted about the details of how this new fund will work, how the payments will have to be made, and most importantly, how you will show evidence that you have been meeting your Sponsorship Obligations.
If you have any questions, please contact us on email@example.com or 02-9216-6600