From this week all businesses that choose to sponsor foreign workers for temporary visas or for employer sponsored permanent residency visas will have to pay the Skilling Australia Fund (SAF) levy.
The legislation - which passed Parliament on May 9, 2018 - will apply to all Australian businesses, including universities from Sunday, August 12.
A spokesperson from the Department of Home Affairs told SBS Italian the new levy will offset expenditure from the Skilling Australians Fund (a training fund administered by the Department of Education and Training) which supports skills development of Australians.
"There are no exemptions, except for Ministers of Religion and Religious Assistants sponsored under the labour agreement streams of the TSS and ENS visa programs," the spokesperson said via email.
"The SAF levy will be payable in full at the time the worker is nominated."
According to the DHA website, employers with less than $10 million turnover will have to pay $1,200 for each year of nomination of employees on temporary visas. The levy increases to $1,800 per year for businesses generating more that 10 million annually.
Two people working in carpet factory, female manager on computer, mid adult man wearing hi vis Source: E+
"Previously, all employers had to fulfil certain training-related obligations for each of their employee. This could be done via training courses and other means, while now it is only required an upfront payment," migration agent Alberto Fascetti told SBS Italian.
"It certainly looks more expensive and a form of disincentive for businesses looking to employ migrant staff. The flip-side is that an upfront payment simplifies and clarifies the bureaucratic process for employers," he said.
All Australian businesses, including universities, who lodge a new nomination application under the Temporary Skill Shortage (TSS), Employer Nomination Scheme (ENS) or Regional Sponsored Migration scheme (RSMS) visa programs on or after 12 August, 2018, will be required to pay the required levy.
Source: Bloomberg
The Skilling Australia Fund Training levy applies also to employer sponsored permanent residency visas. In this case employers with an annual turnover below $10 million are required to undergo a one-off payment of $3,000, while businesses above the $10 million turnover mark will have to pay $5,000.
"In the past many applications were rejected for lack of documents or miscalculations on behalf of applicants. Now the upfront payments eliminate this risk," Mr Fascetti said.
More information about the new levy including the fees that will be charged is available on the Department's website.
