Subclass 457 Visa - Training Benchmark Requirements

As a Subclass 457 Employer Sponsor, the business must meet prescribed training benchmarks. 


The Migration Regulations require that the business must provide clear evidence that there has been, and continues to be, adequate provision for business related training for existing employees (Australian citizens and Australian permanent residents).  This training requirement must be met for at least three (3) years from the date of sponsorship approval, depending on the term of your sponsorship approval (and on the basis that the business continues to employ a subclass 457 visa holder). This policy reflects the government’s intention to ensure that the employment of skilled overseas workers will not prejudice any commitment and investment by the business in providing adequate training to employees who are Australian citizen or permanent residents.

 

TRAINING BENCHMARK REQUIREMENTS

Employers wishing to sponsor under the subclass 457 visa program must demonstrate their contribution and commitment to the training of employees who are Australian citizens and Australian permanent residents is related to the purpose of the business.

 

If your Business Has Been Trading For 12 Months or More

The Sponsor must provide evidence of meeting one of the following training benchmarks:

Ø  Training expenditure to the level of 1% of its payroll of Australian employees for the most recent financial year, OR failing to meet this requirement

Ø  Pay 2% of the payroll to an industry training fund,

 

and a commitment, by the business, to maintain expenditure in each fiscal year, to that level, for at least three (3) years, depending on the term of approval of your business sponsorship.

 

HOW THE BUSINESS CAN PROVIDE EVIDENCE

Expenditure that can count towards this benchmark relating to employees who are Australian citizens and Australian permanent residents includes:

 

Ø  Receipts for a formal course of study for employees or for TAFE or University students attending training in the workplace, as part of the organisational training strategy

Ø  Funding a scholarship in a formal course of study approved under the Australian Qualifications Framework or, for TAFE or University students, as part of the organisational training strategy

Ø  Employment of apprentices, trainees or recent graduates on an ongoing basis in numbers proportionate to the size of the business (please provide a copy of Apprenticeship Agreement)

Ø  Employment of a person who trains the business’ Australian employees who are Australian citizens and Australian permanent residents as a key part of their job (please provide evidence of Trainer’s qualifications)

Ø  Evidence of payment of external providers to deliver training for Australian employees

Ø  On-the-job training that is structured with a timeframe and clearly identified increase in the skills at each stage, and demonstrating:

v  the learning outcomes of the employee at each stage;

v  how the progress of the employee will be monitored and assessed;

v  how the program will provide additional and enhanced skills;

v  the use of qualified trainers to develop the program and set assessments; and

v  the number of people participating and their skill/occupation.

Nevett Ford Lawyers Melbourne can provide advice and assistance with all visa types, including the Subclass 457 visa.