BUDGET 2017: HOW IT WILL AFFECT AUSTRALIAN BUSINESSES & VISA APPLICANTS

budget 2017

The Australian Government has made radical changes to migration over the last weeks and last night’s budget was no exception.

Unsurprisingly, Visa Application Charges (VAC’s) will increase come 1 July 2017. The Government has announced that all current VAC’s will be indexed annually in line with the forecast Consumer Price Index.

Further, there will be significant changes to training benchmarks for those companies whom sponsor international employees. Come March 2018, the Skilling Australians Fund Levy will be introduced.

This levy will replace the current training benchmarks for employers sponsoring workers on Subclass 457 and permanent Employer Nomination Scheme Subclass 186 visas.

From March 2018, businesses with turnover of less than $10 million per year will be required to:

  • make an upfront payment of $1,200 per visa per year for each employee on a Temporary Skill Shortage visa
  • a one-off payment of $3,000 for each employee being sponsored for a permanent Employer Nomination Scheme (subclass 186) visa or a permanent Regional Sponsored Migration Scheme (subclass 187) visa.

Businesses with turnover of $10 million or more per year will be required to:

  • make an upfront payment of $1,800 per visa year for each employee on a Temporary Skill Shortage visa
  • a one-off payment of $5,000 for each employee being sponsored for a permanent Employer Nomination Scheme (subclass 186) visa or a permanent Regional Sponsored Migration Scheme (subclass 187) visa.

This measure is estimated to achieve revenue of $1.2 billion over the forward estimates period, which will be used to meet future skills needs, with a particular focus on apprenticeships and traineeships.

If you have any queries or concerns regarding your employees or your visa application, please do not hesitate to contact our office.