Sponsoring overseas workers?

SAF Levy & Updated LMT Requirements

Are you thinking about sponsoring overseas employees to work for your business in Australia? Make sure you are up-to-date with important changes and new requirements, as this area of migration law has undergone a recent overhaul.

On 12 August 2018, an update regarding the new Skilling Australians Fund (SAF) levy and Labour Market Testing (LMT) requirements came into effect. These two changes will have a great impact upon the sponsors of overseas workers, so it is important that you understand how these changes will affect you as a sponsor.

What you need to know about the new Skilling Australians Fund (SAF) Levy:

On 9 May 2018, the Migration Amendment (Skilling Australians Fund) Bill 2018 was passed by Parliament. On 12 August 2018, the Department of Home Affairs implemented the new SAF levy. This levy will contribute to the Skilling Australians Fund (SAF), with an aim of growing apprenticeships and trainee programs to support the growth of Australian jobs.

The levy will be charged to any new nomination under following visa subclasses:

• Temporary Skill Shortage (TSS) subclass 482 visa
• Employer Nomination Scheme (ENS) subclass 186 visa
• Regional Sponsored Migration Scheme (RSMS) subclass 187 visa

Each nomination, under these visa programs, will attract a Nomination Training Contribution (NTC) charge. These NTC charges are payable at the time the nomination is lodged.

For a business with an Annual Turnover of less than $10 million per year:

For a business with an Annual Turnover of more than $10 million per year:

What if my employee leaves during the visa period?

Refunds are generally unavailable for the levy paid for TSS nominations, however they are possible under the following circumstances:

• Applications where the employer’s sponsorship application is refused;
• Applications where the employer’s sponsorship is approved, but the employee’s subsequent visa application is refused based on character or health grounds;
• When an approved TSS 482 visa holder does not actually commence work with the sponsor;
• When a TSS 482 visa holder ceases work with their sponsoring employer within the first 12 months of employment. The refund will be based on the balance of the remaining years on the visa;
• When the nomination is withdrawn.

What you need to know about the Labour Market Testing (LMT) requirements:

All employers seeking to sponsor workers under the TSS, ENS and RSMS programs must be able to show that they have tested the Australian Labour Market and determined that no suitable workers are available. The following points will ensure you don’t get caught out by the new updates.

1. Time period in which LMT must be undertaken:
   • Four weeks – does not need to be consecutive.
   • No more than four months before the nomination is lodged
     
2. Exceptions to LMT:
   • LMT is mandatory, unless international trade obligations apply.

3. Requirements of LMT advertising:
   • Advertisement must be in English;
   • Must contain the title, or a description, of the position;
   • Contain the name of the sponsor, or name of the recruitment agency being used by the sponsor;
   • Detail the salary for the position if the annual earnings for the position are lower than AUD$96,400 – publishing a salary range is acceptable;
   • Advertisement sets out any skills or experience requirements appropriate for the position.

4. Where to publish LMT advertisement:
   
   • Minimum of two published advertisements required

Acceptable to use

• Indeed (Free)
• jobgov.au (Free)
• Adzuna
• seek.com.au
• careerone.com.au
• LinkedIn
• Industry specific recruitment websites

NOT acceptable to use

• Facebook
• Twitter
• Gumtree
• Instagram

It is important to note that the nominated position may be advertised in the same medium (such as online advertisements) or on two different mediums simultaneously, or on two separate occasions.

When is LMT not required?

There are certain circumstances that allow sponsors to operate without Labour Market Testing, as listed below:

1. In relation to a nominee who has an internationally recognised record of exceptional and outstanding achievement in a profession, sport, the arts, or academia and research;
2. In relation to an existing TSS or 457 visa holder, for which a new nomination has been lodged solely because the annual earnings that will apply to the nominee have changed, or a change in business structure has resulted in the nominee’s employer lodging a new application to be approved as a standard business sponsor.

Looking to sponsor overseas workers?

If you are looking to sponsor overseas workers or need guidance in this complex and ever-changing area of law, Results Migration are experts in the field and have a team of experienced migration lawyers willing to assist you from start to finish.

If you have any questions or want to discuss your options for any of the employer-sponsored visa programs, call Results Migration on 1800 808 717 to book in your free consultation today!