457 Sponsors Training Obligations
Written By Paula Wilkinson | Mon, Nov 17, 2014
457 sponsors are required to satisfy Immigration that they have met training expenditure requirements at the time of lodging their sponsorship application and throughout the life of their agreement. Agreements are granted for 3 years for most business sponsors and 6 years for those companies who have accredited status.
If a company has traded for more than 12 months they are required to meet either Training Benchmark A or Training Benchmark B. The expenditure required to satisfy Training Benchmark A is 2% of payroll and 1% for Training Benchmark B. Sponsoring companies can choose whether they wish to elect to meet either Benchmark A or B. Due to the reduced cost involved most sponsors choose Benchmark B.
If a company has traded for less than 12 months they are required to provide an auditable training plan describing how they will meet the training requirements in the future.
Training expenditure must relate to Australian employees.
Evidence of training expenditure needs to be provided to Immigration.
Payroll includes wages paid to employees in the 12 months prior to lodgment of the application. It includes wages, commission, bonuses, allowances, superannuation and eligible termination payments that are defined as wages in the Act relating to payroll tax in the relevant State/Territory.
Payments made to overseas workers should also be included as payroll expenditure.
If the only employee of the business is the business owner, the applicant can demonstrate expenditure on training that is aimed at developing the business, namely expenditure on the business owner in a related course of study or conference.
Training Undertaken by Principals of the Business
A maximum of 40% of the total training expenditure can be on a principal of the firm.
Training Benchmark A
Business Sponsors can choose to contribute 2% of their payroll to an Industry Training Fund. The training fund should be in the same industry as the business is operating in. A receipt of the contribution would need to be provided with the lodged application.
Businesses that do not employ Australians will need to meet Training Benchmark A.
Training Benchmark B
There are a many types of training expenditure that can be used to meet this training benchmark, If you would like information on the specific types of training expense that can be evidenced to meet Training Benchmark A, feel free to contact TSS Immigration.
Written by Paula Wilkinson MARN 0323848 - Registered Migration Agent at TSS Immigration
One of our migration agents will be in contact as soon as possible.