Many businesses from every industry have had their applications to sponsor employees under the Subclass 457 visa denied, simply for failing to submit sufficient evidence of meeting the training benchmark.
In order to be approved as a sponsor, an employer must be able to demonstrate that their business provides a certain amount of training to Australian employees. Specifically, the business must spend at least 1% of its payroll on training employees who are Australian citizens or permanent residents. Alternatively, the employer can make a contribution to an approved fund equal to or greater than 2% of the payroll.
Below are the exact words of the relevant legislative instrument:
A) Recent expenditure, by the business, to the equivalent of at least 2% of the payroll of the business, in payments allocated to an industry training fund that operates in the same industry as the business, and a commitment, by the business, to maintain expenditure in each fiscal year, to that level, for the term of approval as a sponsor.
OR
B) Recent expenditure, by the business, to the equivalent of at least 1% of the payroll of the business, in the provision of training to employees of the business, and a commitment, by the business, to maintain expenditure in each fiscal year, to that level, for the term of approval as a sponsor.
If your business is an approved sponsor under the 457 visa program, or is applying to be recognised as a sponsor, you may be able to make a contribution to a fund such as the Learning Potential Fund to satisfy your requirements for Training Benchmark A.
Training Benchmark A requires expenditure equivalent to at least 2% of the payroll of your business.
Alternatively, you may choose to procure or provide training for employees of your business who are Australian citizens or permanent residents, so as to satisfy Training Benchmark B.
Training Benchmark B requires expenditure equivalent to at least 1% of the payroll of your business.
Ascertaining the requirements to satisfy either Training Benchmark for a particular business involves a detailed assessment of the structure of the business as well as the nature of any training plan to be implemented by the sponsor. It is therefore advisable for sponsors and prospective sponsors to seek professional advice from a reputable migration agent who can help you to achieve a favourable outcome.
Remember that the cost of seeking professional advice may be far less than the cost in time, money and the chance of a future life in Australia if a visa is refused due to unprofessional work.
No Borders Migration Advocates