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482 visa

NEW Skilling Australians FUND (SAF)

The Skilling Australians Fund legislation has just been passed in the Senate.

The Australian Government has stated that the purpose of the Skilling Australians Fund (the Fund) is for it to provide ongoing funding for vocational education and training (VET).  The Fund is supposed to support 300,000 more apprenticeships, traineeships, pre-apprenticeships, pre‑traineeships, and higher apprenticeships all across Australia.

The revenue for the Fund will be financed by the Government’s skilled migration reforms that require employers who sponsor a foreign worker to pay a Nomination Training Contribution Charge (known as a levy) under the following visa types, including:

 
  • Temporary Skill Shortage (TSS) visa
  • Employer Nomination Scheme (ENS) (subclass 186) visa
  • Regional Sponsored Migration Scheme (RSMS) (subclass 187) visa

The levy has replaced the previous training benchmarks for employers who sponsor foreign workers on the above mentioned visas.

The new levy is payable by companies sponsoring overseas candidates for subclass 482/TSS visas and subclass 186 visas. The new system is a simpler one and for many employers it will be easier to meet and to administer. The training levy will be payable per application and at the nomination stage of the visa process. For each person an employer sponsors they will pay a set amount per year. The other relevant fact is the size of the employer's business or more specifically the size of their sales turnover or revenue. There will be one levy for employers with a turnover of less than $10 million and a higher amount for employers with a turnover of $10 million and above.

The amounts for a TSS/ subclass 482 visa are:

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For permanent residence employer sponsored applications - visa subclass 186/187. The permanent application figure is a higher payment bit it is one off payment and paid not annually:

 
  • If turnover less than $10 million - $3000
  • If turnover $10 million or higher - $5000

Some good news is that the levy will be tax deductible and if a nomination is refused or where an incorrect application is lodged and withdrawn, the levy will be refunded. However the cost of Skilling Training Fund levy cannot be passed on to the visa applicant.

If you need more information on SAF, call one of our Lawyers and Agents for a consultation.

Australian Taxation Office (ATO) and Immigration

The Government is implementing measure in attempt to clamp down on fraud, tax avoidance, superannuation requirements and working without proper permission.  This may impact you directly if you are a visa holder.

The Australian Tax Office (ATO) has announced that around 20 million visa holders are to be scrutinised under a data matching scheme with the aim of catching those who are avoiding tax, falling foul of superannuation compliance and working illegally.

What it means

Under the data matching scheme, the ATO will become privy to your tax, bank, social security and wages and will be able to share this information with the Department of Home Affairs (DHA) (Immigration).

This means it will be easier for officials to detect anyone who is flouting their obligations be that a visa holder or an employer.

The Federal Government will look at records and review information on not just sponsors and visa holders but also migration agents and education providers.  Officials will be able to find out where visa holders have travelled, where they have worked or studied and the payments they have received.

It could also mean that those who left Australia may be entitled to superannuation which they didn’t know about.

How will it affect employers and visa holders?

If you claimed that you undertook some regional work as part of your Working Holiday Visa but didn’t actually carry it out, if that information comes to light, it could prevent you from extending your visa.

If you're employer and an approved sponsor, then you have a duty to keep records of wages and produce pay slips. Even if you pay cash, this needs to be documented.

Subclass 457 and 482 visa holder employees who do not declare their wages to the ATO will be found to be in breach of their visa conditions and this may lead to visa cancellation.

Data matching will pick up any discrepancies between Business Activity Statements (BAS), tax assessments, bank records between employers and employees.  

If evidence emerges that you’re an employer who offers sponsorship and are paying visa holders below average wages, then it could result in your sponsorship approval being cancelled.

When will the audit take place?

This audit will take place over the next three years and is part of a recent Australian Government drive to pay closer attention to the information it holds and be able to share records to investigate fraud and non-compliance.

Should you have any questions about the above information or if you want to discuss your particular circumstances in more detail please do not hesitate to contact us for a confidential discussion on (03) 9614 7111.

 

Temporary Skill Shortage visa (TSS Visa) and Skilled Occupation Lists (SOL)

The Skilled Occupation List (SOL) is a list of skilled occupations that are in demand.

Occupations on the SOL List are assessed on an ongoing basis with new roles being included and removed from time to time (Immigration has confirmed that the list will be revised every 6 months).

The new Temporary Skill Shortage (TSS) visa (subclass 482) will come into effect in March and will replace the 457 program.

The TSS visa will still allow skilled workers to come to Australia to help fill a legitimate skills shortage. But this new type of visa will have fewer eligible skilled occupations than the 457 visa.

The Short-Term stream of the TSS visa will allowing an individual a stay of up to two years, and a Medium-Term stream will allow a stay of up to four years. The occupations will now be divided into the Short Term Skilled Occupations List (STSOL) for those applying under the Short-Term stream and the Medium and Long-term Strategic Skills Occupation List (MTSOL) for those applying under the Medium-Term Stream.

These new occupation lists for the new Temporary Skills Shortage (TSS) visa, along with the Employer Nomination Scheme (ENS) 186 visa and Regional Sponsored Migration Scheme (RSMS) 187 visa will be published in March 2018.

The Short-Term stream visa is renewable only once in Australia. 

The Medium-Stream visa holders may renew their visas onshore and may apply for permanent residence pathway after working for three years in Australia.

Tighter regulations

These new visa streams will have stricter requirements attached to them, and this includes higher English language capability, work experience requirements, additional character, anti-discrimination and training requirements and salary rates in line with current Australian market rate salaries. There will also be strict Labour Market Testing (LMT) requirements which means business sponsors will have to test the local labour market before taking someone from overseas.

If you require further information or advice please contact the experienced team at Nevett Ford Lawyers.