A Further Update – Training Levy

By 7 August 2018August 19th, 2020No Comments

The training levy, now officially known as the “Nomination Training Contribution Charge”, will be introduced from 12 August 2018. The charge will apply to employers seeking to nominate an overseas worker for a TSS visa or permanent residence under an Employer Nomination.

Ahead of our August Newsletter, we provide the following updates:

Training Benchmark

The Training Benchmark requirement will be replaced by the nomination training contribution charge. The intention is that employers are not subject to any overlap between the old and the new legislative requirements.

This means that employers that lodge Business Nominations (for a TSS visa) and Employer Nominations (for permanent residence applications) on or after 12 August 2018 will no longer be required to comply with training obligations in relation to a period of 12 months ending on or after 12 August 2018.

Employer Nominations that are pending on 12 August 2018 will need to maintain compliance with previous training obligations, since the nomination training charge was not paid at the time of the nomination application.

Refund Provisions

From 12 August 2018, refunds of the nomination training contribution charge will be available in specified circumstances including:

  • The nomination cannot be approved for specified reasons (eg Departmental or administrative or input error) and is withdrawn before a decision is made;
  • The nomination is approved but the nominated worker is refused a visa on health or character grounds;
  • The nomination is approved and the nominated worker is granted a visa, but does not commence work in the position;
  • The nomination is approved and the nominated worker is granted a visa, and commences work in the position, but the employment ends within 12 months. This ground only applies to nominations for TSS visas, and the partial refund will exclude the nomination training contribution charge for the first year of the nomination. (Departmental systems will only be able to process this partial refund from 18 November 2018).

It is important to note that refunds will be at the discretion of the Minister; the official explanation is “to ensure that there is scope to deny a refund in cases of fraud, worker exploitation or manipulation of employment arrangements”.

Employer Cost

Employer Nominations that are lodged, but not decided by 12 August 2018, will be assessed against the current Training Benchmark; for most employers, this means evidencing training expenditure of at least 1% of payroll in the previous 12 month period. This is because the nomination training contribution charge was not paid at the time of the nomination application.

DISCLAIMER This information is current as of 7 August 2018 and subject to change. The information contained in this publication is of a general nature only. It should not be used as legal advice. To the extent permissible by law, Ajuria Lawyers and its associated entities shall not be liable for any errors, omissions, defects or misrepresentations in the information or for any loss or damage suffered by persons who use or rely on such information. Liability limited by a scheme approved under Professional Standards Legislation.

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Author Ron Kessels

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