Further to the Government’s announcement regarding the abolishment of the subclass 457 visa, the Government has introduced plans to implement a Skilling Australians Fund Levy which will become effective in March 2018.
The Australian Government anticipates that this new levy will provide $1.5 billion over four years to provide training Australians with skills in need.
This significant change will have an impact on employers considering sponsoring international employees on working visas in Australia.
What will the Skilling Australians Fund Levy be?
The Skilling Australians Fund Levy will be the introduction of a fixed levy that employers must contribute to for each person they sponsor as an international worker.
When will the Skilling Australians Fund become effective?
The Skilling Australians Fund Levy payments that will be required from sponsors will come into effect in March 2018.
What will it cost employers?
The cost to employers will be dependant on the size of the company that is sponsoring a worker. Small businesses with turnover of less than $10M will be required to pay $1,200 per year for each worker employed on the TSS Visa. If a small business is nominating an international employee for permanent residency the one off levy will be $3,000.
Medium to large scale businesses with turnover in excess of $10M will be required to pay $1,800 per year for each worker employed on the TSS Visa and a one off levy of $5,000 if they wish to nominate an overseas employee for PR on a subclass 186 or subclass 187 visa.