In yesterday’s Budget it was announced that a new “Skilling Australians Fund Levy” would be introduced in March 2018. It is anticipated that this will replace the current training benchmarks which Standard Business Sponsors are required to meet.
From March 2018 business with an annual turnover of less than $10 million per year will have to pay:
- $1,200 per visa per year for each employee on a Temporary Skill Shortage visa (TSS visa - which is replacing the 457 visa from March 2018), and
- $3,000 for each employee being sponsored for permanent residence as a one off payment.
For business with an annual turnover of more than $10 million per year will have to pay:
- $1,800 per visa per year for each employee on a TSS visa, and
- $5,000 for each employee being sponsored for permanent residence as a one off payment.
This is a significant new cost for many businesses who will continue to provide training as part of their professional development but will also now bear these additional costs. Employers should look at options to move their 457 visa holder employees over to permanent residence before March 2018 where possible to reduce these costs.
Contact us for advice on what options may be available.