MKG-newIf your business that wants to sponsor somebody from overseas there are a number of requirements, most of which are relatively straight forward, but the one that many businesses are not able to comply with straight away is that of “training benchmarks”.

Training benchmarks are evidence that an employer, has spent or will spend a certain amount on training.  The purpose is to ensure that employers are investing in Australian employees before they are able to sponsor overseas workers.

There are two ways that an employer can meet the training benchmarks.

The first way is to provide evidence that in the twelve months prior to lodging the application that at least 1% of payroll has been spent on training of employees of the business.  This also needs to maintained through the life of the approval.

Apprentices and trainees wages would be included as would fees paid for TAFE, University or funding of scholarship courses.  Evidence of payment of external providers, tuition fees and conferences would be required.  Also expenditure on “on the job training” needs to be a structured learning with identifiable outcomes and relevant to business activities.

If a business is unable to meet the 1% of payroll obligations, the second way for the business to comply is to pay 2% of their payroll to an industry training fund.  This is obviously not always attractive and the preferable approach is to train your own workers.

As a sponsor you will need to continue to meet the training benchmark requirements for the life of the sponsorship.

If you require any assistance in respect to becoming a sponsor of 457 visas, please contact us at Everingham Solomons for assistance because Helping You is Our Business.

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