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Temporary Skill Shortage

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is that the levy will be tax deductible and if a nomination is refused or where an incorrect application is lodged and withdrawn, the levy will be refunded.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.

New Subclass 482 Temporary Skill Shortage Visa

As a result of a broad package of reforms relating to employer sponsored skilled visa programs, announced by the Government on 18 April 2017 the 457 visa will cease to exist on 18 March and will be replaced by the new Temporary Skill Shortage (Subclass 482) visa which enables employers to access a temporary skilled overseas worker if an appropriately skilled Australian worker is unavailable.

An overseas worker must be nominated by a sponsoring business and obtain a Subclass 482 visa before they can commence work in Australia. The Subclass 482 visa has three streams:

  • Short-term stream – allows employers to source skilled overseas workers in occupations on the Short-term Skilled Occupation List (STSOL) for a maximum of two years (or up to four years if the two year limitation would be inconsistent with an international trade obligation);
  • Medium-term stream – allows employers to source skilled overseas workers for occupations on the Medium and Long-term Strategic Skills List (MLTSSL) for up to four years; and
  • Labour Agreement stream – allows employers to source skilled overseas workers in accordance with a labour agreement with the Commonwealth, where there is a demonstrated need that cannot be met in the Australian labour market and standard visa programs are not available.

Changes to the Employer Nomination Scheme (Subclass 186) visa and the Regional Sponsored Migration Scheme (Subclass 187) visa will be implemented to complement the introduction of the Subclass 482 visa. The main changes will result in a tightening of eligibility for these visas by reference to criteria dealing with age, employment history, salary, English language, and eligible occupations.

Changes to eligibility requirements for the Temporary Residence Transition stream in the Subclass 186 and Subclass 187 visas will not apply to persons who held or had applied for a Subclass 457 visa when the changes were announced by the Government on 18 April 2017.

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