Money wrapped in a bow

 

The Government has announced plans to introduce a Skilling Australians Fund Levy, effective from March 2018. This news impacts employers planning to sponsor overseas employees on short-term and PR visas.

What does it involve?

At present, employers sponsoring temporary overseas workers must either spend 1% of their annual payroll on training Australian workers or donate 2% to the annual payroll to an approved training fund.

The Government wants to scrap this practice and introduce a flat levy instead. They say the old system was too hard to police.

How much will employers pay?

The amount payable depends on the size of the sponsoring company. Small businesses (turnover of less than $10m) will pay $1,200 per year for each worker they employ on the new Temporary Skill Shortage Visa (TSS), which will be introduced next year. Small businesses nominating an employee for a permanent visa (such as the RSMS or ENS) will pay a one-off levy of $3,000.

Medium and large businesses (turnover in excess of $10m) will pay $1,800 annually per temporary worker and a one-off level of $5,000 if they want to nominate an overseas employee for PR, on a 186 or 187 visa.

When is the Skilling Australians Fund Levy payable from?

This levy is linked to the new TSS visa and will be introduced in March 2018, at the same time as the new visa program.

Where will the money go?

The Government expects to raise over $1.2bn over four years from the levy. Education and Training Minister Simon Birmingham believes the fund will lead to the creation of 300,000 Australian apprenticeships by 2021.

TSS visa fees

The new TSS visa will cost applicants $1,150 for the two-year option and $2,400 for the four-year stream.

For more information on employer-sponsored temporary visas and employer-sponsored PR, http://truebluemigration.com/contact/ with a Registered Migration Agent.