Skilling Australians Fund (SAF) update
The Migration Amendment (Skilling Australians Fund) Bill 2018, passed by the Parliament of Australia on 9 May 2018, is expected to be implemented during the first quarter of 2018-19.
- the SAF Levy will be payable on Temporary Skill Shortage (TSS), subclass 186 and 187 nomination applications;
Introduced with the Migration Amendment (Skilling Australians Fund) Bill 2017, the bill imposes a nomination training contribution charge (to be known as the Skilling Australians Fund levy) on employers nominating workers under the temporary and permanent employer sponsored migration programs.
The levy will replace the current training benchmarks for employers sponsoring workers on 457, ENS and RSMS visas from March 2018. It will also be the requirement for the new TSS visa.
Businesses with turnover of less than $10 million per year will be required to make:
- an upfront annual payment for each employee on a TSS visa of $1,200
- a one-off payment for each employee being sponsored for a permanent ENS or RSMS visa of $3,000
Businesses with turnover of $10 million or more per year will be required to make:
- an upfront annual payment for each employee on a TSS visa of $1,800
- a one-off payment for each employee being sponsored for a permanent ENS or RSMS visa of $5,000.
Training Benchmark B continues to be valid until the TSS visa and Skilling Australia Fund (SAF) are in effect. The TSS will not be coming into effect on 1st March 2018. Sponsors are yet to be informed about a specified date for the TSS to come into effect.
It is important to note that companies employing someone on a sc457 visa are required to meet their Training Benchmark obligations. If a company wishes to continue to be a sponsor for TSS later on, they will need to provide proof of having met the training criteria as a 457 sponsor.