Training levy to increase the costs of migration
In March 2018 the new Temporary Skill Shortage (TSS) visa comes into effect. The TSS visa replaces the old subclass 457. Underpinning the new TSS visa is a new training levy which will need to be satisfied by employers looking to employ skilled foreign workers.
The 2017-18 Budget provided some indication as to the quantum of this training levy which will be contributed into a new ‘Skilling Australians Fund’. Those Employers who nominate foreign employees for the TSS visa and certain permanent skilled visas will have to pay an amount per new application based on their turnover and term of the visa being applied for.
Businesses with annual turnover of A$10 million or more will be required to make an upfront payment of A$1,800 per visa year for each foreign employee sponsored on a TSS visa. In addition, they will also pay a one-off levy of A$5,000 for each foreign employee sponsored for Australian permanent residence. For businesses with annual turnover below A$10 million the levy will be A$1,200 per visa year for each foreign employee sponsored on a TSS visa and A$3,000 for each foreign employee sponsored for Australian permanent residence.
The introduction of the training levy will result in an increase in costs for employers that sponsor employees for temporary or permanent residence. These additional costs will be payable by the employer irrespective of your current training expenditure currently undertaken. The training levy is for the employers account and can not be borne by the visa applicant.
For many corporates this makes the cost of accessing foreign skills even greater; and for foreign migrants seeking employer nomination, the prospects of finding such employer nomination even more challenging.