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IMPACT – MEDIUM
What is the change? The Australian Department of Immigration and Border Protection is seeking responses to a proposal to require subclass 457 visa sponsors to contribute annual payments to a fund to train Australian nationals for the workforce.
What does the change mean? Annual training fund contributions would replace the current training benchmarks, which the Government has deemed ineffective. Under the current proposal, initial contributions would range from $400 to $800 for each 457 holder, depending on the size of the company.
Background: The Government endorsed the idea of replacing training benchmarks with an annual training fund contribution in March, when it announced its support for a host of Subclass 457 reforms.
A Government report on the proposal says the training fund would be used in a large part to reach out to groups underrepresented in the job market, including youth, Indigenous Australians and those living in rural areas. The fund would also target sectors of the economy that traditionally employ high numbers of 457 holders, including nursing and IT.
The Government is seeking responses, both in terms of the proposal’s administration (e.g., how to limit costs to business while ensuring quality training, whether contributions should be capped and whether any exemptions are warranted) and its investment focus (e.g., whether the proposed investment priorities are appropriate, how the success of the programme should be measured and how an independent governance board should be structured).
BAL Analysis: Those wishing to respond to the Government’s proposal are urged to do so as soon as possible. BAL will continue following the development and eventual implementation of a training fund contribution programme for 457 visa sponsors.
This alert has been provided by BAL Australia. For additional information, please contact australia@bal.com.
MARN: 9683856
Copyright © 2016 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
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