New Levy on Employers of 457 Visa Holders | TSS Recruitment

New Levy on Employers of 457 Visa Holders

  • Brendan Halliday

The 457 visa is being replaced by the TSS visa in March 2018. One significant change for employers is the removal of the existing training requirement and the introduction of a new levy to contribute to the newly formed Skilling Australians Fund.

From March, sponsoring employers will face an upfront charge of at least $1,200 per year for each TSS visa holder. This amount is required to be paid upfront to the Australian Government, for the duration of the visa length specified (i.e, 2 years or 4 years).

The upfront levy will replace the current training requirements for employers sponsoring workers on 457, ENS and RSMS visas from March 2018.

Businesses with a turnover of less than $10 million per year will be required to make:

  • an upfront annual payment for each employee on a TSS visa of $1,200 per year or part thereof of the period you intend to sponsor the employee
  • a one-off payment for each employee being sponsored for a permanent ENS or RSMS visa of $3,000

Businesses with a turnover of $10 million or more per year will be required to make:

  • an upfront annual payment for each employee on a TSS visa of $1,800 per year or part thereof of the period you intend to sponsor the employee
  • a one-off payment for each employee being sponsored for a permanent ENS or RSMS visa of $5,000

The nomination charge will be calculated according to the number of years or parts thereof, set out in the nomination. For example, a large business nominating an employee on a 4-year visa equates to $1,800 per annum x 4 years = $7,200 upfront.

This is payable at the time of nomination, not paid yearly based on the nominees continued employment with you. For permanent visas, the charge will be $5000.

There are no pro-rata provisions payment of the charge for parts of a financial year.

We are happy to provide more information on this to employers. Please call the Registered Migration Agents at TSS Immigration to discuss in more detail.