Obligation to provide training : 457 business sponsors

Migration Regulation 2.87B requires standard business sponsors (under the subclass 457 visa program) (and former standard business sponsors) to contribute to the training of Australian workers in each year that they engage a Subclass 457 visa holder employee.

The training benchmarks for an established business are:

(A) Recent expenditure, by the business, to the equivalent of at least 2% of the payroll of the business, in payments allocated to an industry training fund that operates in the same industry as the business

or

(B) Recent expenditure, by the business, to the equivalent of at least 1% of the payroll of the business, in the provision of training to employees of the business.

This obligation is assessable on an annual basis, in the twelve month period commencing on the day on which the sponsor is approved, provided the sponsor has engaged a Subclass 457 visa holder at any stage during that twelve month period. 

The obligation ends:

• if the period of approval is less than six years, the obligation ends three years after the person is approved as a standard business sponsor
• if the period of approval is at least six years, the obligation ends six years after the person is approved as a standard business sponsor.