From 12 August 2018, the long-awaited Nomination Training Contribution Charge will apply at the time of lodgement to all Business Nominations (for TSS visas) and Employer Nominations (for permanent residence visas). The revenue raised by the charge will offset expenditure from the Skilling Australians Fund (SAF), a training fund for apprenticeships and traineeships that will be administered by the Department of Education and Training.
Business turnover is key to determining the charge that will apply.
For a nomination by a business that is operating in Australia, “annual turnover” is defined as:
the total ordinary income (within the meaning of the Income Tax Assessment Act 1997) …. derived in the most recent income year (within the meaning of that Act) ending before the nomination day.
This information may be verified with the ATO. If an Australian tax return has not yet been submitted for the last income year, the sponsor should provide an estimate of the total ordinary income that will be advised to the ATO when the return is submitted.
For overseas businesses, annual turnover in the most recent financial year ending before the nomination day is the relevant year. This date varies from one country to the next.
If the Department of Home Affairs determines that the turnover has been mis-stated at the time of the nomination, with the result that the lower charge was paid, the shortfall will be considered a debt to the Commonwealth and would have to be paid in full before any further nomination could be approved.
The only exception to payment of the contribution charge is if the nomination relates to the occupation of Minister of Religion or Religious Assistant under a Labour Agreement, either temporary or permanent. This is a continuation of current policy.
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