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Immigration


24 May 2017

AUSTRALIA: Introduction foreign workers levy

The Government has announced it will introduce a foreign workers levy as well as a visa application charge increase as part of the 2017-18 Budget.

The Skilling Australians Fund Levy will replace the current framework for employers sponsoring foreign workers on both temporary and permanent visas from March 2018.

Requirements for businesses with turnover of less than AUD10 million per year:

  • For each employee on a Temporary Skill Shortage visa an upfront payment of AUD1200 per visa per year;
  • For each employee being sponsored for a permanent visa under the Employer Nomination Scheme (subclass 186) or the Regional Sponsored Migration Scheme (subclass 187) a one-off payment of AUD3000 is required.

Requirements for businesses with turnover of more than AUD10 million per year:

  • For each employee on a Temporary Skill Shortage Visa an upfront payment of AUD1800 per visa year; 
  • For each employee being sponsored for a permanent visa under the Employer Nomination Scheme (subclass 186) or the Regional Sponsored Migration Scheme (subclass 187) a one-off payment of AUD5000 is required.

All current first instalments of the visa application charges (VAC) will rise by around 2% on 1 July 2017, after which it will be indexed annually.

For the Temporary Work Skilled Subclass 457 visa

  • VAC for the main applicant or adult dependent will increase from AUD1060 to AUD1080;
  • VAC for a child dependent will increase from AUD 265 to AUD270.

For an Employer Nominated Scheme Subclass 186 / Regional sponsored Migration Scheme Subclass 187 visas:

  • VAC for the main applicant will increase from AUD 3600 to AUD3670; 
  • VAC for an adult dependent will increase from AUD 1800 to AUD1835; 
  • VAC for a child dependent will increase from AUD900 to AUD920. 

For an Employer Nominated Scheme Short Stay Specialist Subclass 400 visa:

  • VAC for the main applicant will increase from AUD 275 to AUD 280.

The revenue raised by this new level will be contributed to the new Skilling Australians Fund, with a focus on apprenticeships and traineeships.

How does this affect the client?

The changes will significantly raise costs for employers that want to sponsor or nominate foreign workers for Temporary Skill Shortage visas or for the permanent Employer Nomination Scheme (subclass 186) and Regional Sponsored Migration Scheme (subclass 187) visas from March 2018. 

 

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