New training levy for TSS and ENS programs from March 2018

From March 2018, employers wishing to sponsor foreign workers on the TSS and ENS/RSMS programs will be required to pay a training levy which will go towards the Skilling Australians Fund which will fund training of Australians in apprenticeship and trainee programs.

The payment for TSS visa holders will apply on an annual basis per employee. For ENS/RSMS applicants it will be a one-off payment likely to be collected on application. The amount of the new training levy will depend on the size of the business, to be determined on the annual business turnover. Businesses with a turnover of at least $10 million will pay more.


The training levies will be as follows:

	Businesses with turnover less than $10m	Businesses with turnover $10m or more
TSS	$1,200	$1,800
ENS/RSMS	$3,000	$5,000

 

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457 Visa - Who can Sponsor?

Who can become a sponsor?

To become a sponsor, you must be able to show that your business:

• is a lawfully operating business
• has no relevant adverse information against your business.

Australian businesses must also demonstrate their commitment to employing local labour as well as non-discriminatory recruitment practices.
There are two ways you can become an approved sponsor:

• Option 1: Apply to be a standard business sponsor
• Option 2: Negotiate a labour agreement.

Option 1: Apply to be a standard business sponsor

The standard business sponsorship arrangement is the most common way to sponsor a skilled worker using the subclass 457 visa program. You must lodge an application to become a standard business sponsor.


You can have only one standard business sponsorship approved at any given time (that is, one sponsorship approval per legal entity) which is usually valid for five years. You can apply to extend your sponsorship at any time during this five-year period by lodging a variation application.




The requirements for approval as a standard business sponsor differ for businesses that are outside and in Australia.




Business in Australia
You must attest, in writing, that you have a strong record of, or a demonstrated commitment to employing local labour. You must also declare that you will not engage in discriminatory recruitment practices.




Make the attestation and the declaration about your workplace record in your sponsorship application form.


You must also meet training requirements. This means you must either:

• meet the training benchmarks if you have traded in Australia for 12 months or more
• have an auditable plan to meet the training benchmarks if you have been trading in Australia for less than 12 months.

Business outside Australia
You must be seeking to employ a skilled worker to either:

• establish, or help establish, a business operation in Australia
• fulfil obligations for a contract in Australia.

If your business does not yet have an operating base in Australia, you are not required to satisfy the training requirement.

Option 2: Negotiate a labour agreement

A labour agreement is a formal arrangement negotiated between an Australian employer and the Australian Government. You might be able to enter into a labour agreement if you are in one of the following situations:

• the occupation of the workers you want to employ is not listed on the Skilled Occupation Lists (Formerly Known as Form 1121i) or theAustralian and New Zealand Standard Classification of Occupations (ANZSCO)
• you are a recruitment company seeking to sponsor skilled workers to be on-hired to another businesses, and the occupations requested are on the Consolidated Sponsored Occupations List (CSOL)
• standard immigration options are not suitable.

You must be able to provide evidence that:

• there is a genuine and systemic shortage of skilled workers
• there are no suitably qualified Australian workers available
• you have a commitment to training Australians.

A labour agreement comes into effect when it has been signed by all parties involved in the negotiations. A labour agreement is typically valid for three years.


How to propose a labour agreement


You need, among other things, to:

• identify the relevant skills shortage in the business and why these vacancies cannot be filled by Australian workers (you need to show you have tried to recruit in Australia)
• specify the number of skilled workers needed from outside Australia
• specify the skill and English language requirements that relate to the nominated occupations. Semi-skilled occupations can be considered provided they are specialised and in demand
• include copies of correspondence showing that relevant stakeholders have been consulted.

You might be able to use a template labour agreement if there is one for your industry or your worker’s occupation. A template labour agreement is a set of standard parameters for similar employers: it does not guarantee an agreement will be approved.


If the template does not suit your needs, you might be able to negotiate an individual agreement.




Labour agreements include a requirement to provide training to Australian employees.
When you have a labour agreement in place, you are an approved sponsor for the term of operation of the agreement. You can then nominate skilled workers from outside Australia under the terms of the labour agreement.




You will also need to meet your sponsorship obligations and any other terms and conditions specified in the agreement.  If you breach the terms and conditions of your agreement, we could suspend or terminate it.




Standard business sponsors

To sponsor a worker as a standard business sponsor, you must:

• be a lawfully operating business
• have no relevant adverse information against your business.

If your business is in Australia, you must also:

• meet training requirements
• demonstrate your commitment to employing local labour
• not engage in discriminatory recruitment practices.

You can use Visa Entitlement Verification Online (VEVO for Organisations) to check the work entitlements of your prospective employees.

A lawfully operating business

You must be a lawfully operating business to apply to be a standard business sponsor. This applies to businesses both in and outside Australia.
To demonstrate this you must show both of the following:

• your business is legally established
• your business is actually operating.

A business that exists only on paper cannot satisfy this sponsorship requirement.
If you do not operate in Australia, you must be able to show that you need a skilled worker to:

• come to Australia to establish, or help establish, a business operation with connections with a business located outside Australia
• fulfil, or help in fulfil, a contractual obligation.

If your business is new, you can still satisfy this requirement if you can provide evidence that your business is in fact operating, even if this has been for only a short period of time.
Examples of the documents you can use to show that your business is legally established and operating are in the Document checklist.




If you operate a business under a trust arrangement you must provide details of the Trust Name and the Trust ABN when you complete the application form.  The application should be made using the name of the Trustee as it appears in the Trust Deed.




Details of the principals of your business such as Owners, Partners, Directors and major Shareholders should be provided when you complete the application form.




Contact us today for more information and assistance.

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Visitors to Australia Covered by Reciprocal Health Care Agreements

Australia has Reciprocal Health Care Agreements with nine countries - Ireland, Italy, Finland, Malta, the Netherlands, New Zealand, Norway, Sweden and the United Kingdom. Under these Agreements, residents of these countries have restricted access to Medicare while visiting Australia.

 

These Agreements give visitors from these countries access to Medicare and the Pharmaceutical Benefits Scheme for the treatment of an illness or injury which occurs during their stay, and which requires treatment before returning home (that is, these Agreements cover immediately necessary medical treatment). The Agreements do not allow for visitors to access Medicare or the Pharmaceutical Benefits Scheme where the treatment is not immediately necessary. Prearranged and elective treatment is not covered.

 

In Australia there are both public and private hospital services. The Agreements provide for free accommodation and treatment as public hospital services, but do not cover treatment as a private patient in any kind of hospital. People who choose to be treated as a private patient, either in a private or public hospital, will be responsible for all of their health costs, including doctors' fees.

 

Eligible visitors who are admitted as public patients during their visit to Australia should tell hospital staff that they wish to be treated as a Medicare public patient under a Reciprocal Health Care Agreement. They may be required to produce evidence of their eligibility. Visitors can phone 132 011 (local call cost if calling from within Australia) or visit a Medicare office to confirm what documentation they will need to provide. Medicare office locations are available from the Medicare Australia web site. 

 

Each of the Agreements provides access to affordable medicines under the Pharmaceutical Benefits Scheme. Eligible persons are asked to produce evidence of their eligibility when presenting prescriptions at community pharmacies. Further information on this requirement can be obtained by telephoning the Pharmaceutical Benefits Scheme Information Line on 1800 020 613. Only medicines prescribed for immediately necessary treatment are covered.

 

Each Agreement is different from the others:

 

The Agreements with Finland, Italy, Malta, the Netherlands, Norway, Sweden and the United Kingdom provide free care as a public patient in public hospitals, subsidised out-of-hospital medical treatment under Medicare, and subsidised medicines under the Pharmaceutical Benefits Scheme.

 

The Agreement with New Zealand and the Agreement with Ireland provide free care as a public patient in public hospitals and subsidised medicines under the Pharmaceutical Benefits Scheme, but do not cover out-of-hospital medical treatment.

 

Visitors from Finland, Ireland, the Netherlands, New Zealand, Norway, Sweden and the United Kingdom are covered for the duration of their stay in Australia, while visitors from Italy and Malta are covered for a period of six months only.

What is covered:

 

The agreements are intended to cover treatment of any immediately necessary nature which arises during a stay in Australia and which requires treatment before returning home. The agreements do not cover pre-arranged or elective treatment, or treatment for which there is no immediate medical necessity. Those people entering the country for the specific purpose of receiving treatment are excluded under the agreements.

 

All agreements except for those with New Zealand and the Republic of Ireland cover residents of those countries for:

 

·         Free treatment as a public hospital inpatient or outpatient

·         Medicare benefits for out of hospital treatment (ie: provided by doctors operating in private practice)

·         Subsidised pharmaceuticals under the Pharmaceutical Benefits Scheme.

Visitors from New Zealand and the Republic of Ireland are only covered for:

·         Free treatment as a public hospital inpatient or outpatient

·         Subsidised pharmaceuticals under the Pharmaceutical Benefits Scheme.

“Immediately necessary care” is more than just emergency treatment and may include:

·         Routine primary care

·         Subsequent investigation (eg: referrals to pathology, diagnostic or specialist services)

·         Pre-existing conditions (any necessary monitoring or treatment)

·         Psychiatric care where medically necessary (eg: to stabilize the patient’s condition to enable the journey home)

The longer a visitor stays in Australia, the greater the range of services that are likely to be immediately necessary and that should be made available (i.e. they will be treated more like Australian residents). Where there is doubt over individual services, patients should seek a note from the doctor indicating the medical necessity for the proposed service. Where required individual cases should be judged on merit.

 

The Agreements do not cover all health services. Some services not covered under the agreements are:

 

·         Ambulance cover

·         Dental care

·         Medical evacuation to your home country

·         Funerals

·         Treatment in private hospitals, or as a private patient in a public hospital

·         Treatment that is not immediately necessary

·         Elective treatment

·         Treatment that has been pre-arranged before arrival in Australia  

For this reason it is highly recommended that all visitors to Australia from Reciprocal Health Care Agreement countries buy health or travel insurance designed for overseas visitors.

If you are staying temporarily in Australia for an extended period and will be covered by an Agreement, you may be able to enrol in Medicare by visiting a Medicare office with your passport. If you are from Italy or the Netherlands, you will also need to show proof that you are enrolled in your home country's health system. You can telephone 132 011 (local call cost if calling from within Australia) or visit a Medicare office to confirm what documentation you will need to provide. Medicare office locations are available from the Medicare Australia website (Once on the Medicare Australia website a list of office locations can be accessed by clicking on 'Public', then 'Medicare', then 'Office Locations').

  

Health Insurance for Visitors from Overseas

 

People without access to Medicare are responsible for all health costs incurred in Australia. For this reason it is highly recommended that all overseas visitors to Australia (including visitors from Reciprocal Health Care Agreement countries who have only restricted Medicare access) arrange suitable insurance cover. Domestic private health insurance for Australian residents, as provided by the organisations registered under Australian health law, is not suitable for visitors to Australia because this insurance is a supplement to Medicare and will therefore not adequately cover the costs of a person who is not eligible for Medicare.

 

Private health insurance for overseas visitors in Australia is available from Australian registered health organisations, insurance brokers and general insurers.

 

Please contact Nevett Ford Lawyers Melbourne if you require any further information in relation to this issue, or if you require specific legal advice regarding any aspect of the Reciprocal Health Care arrangements.

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Expert review of the 457 temporary skilled migration income threshold

Mr John Azarias has been appointed to undertake an evidence-based review of the Temporary Skilled Migration Incomes Threshold (TSMIT).

The review was recommended by the Independent Review into Integrity in the Subclass 457 Programme.

The review will consider a range of issues including the factors that should determine the settings, the appropriate base level, and the roles of indexation and regional concessions for the TSMIT.

The TSMIT defines the salary threshold for jobs that can be filled by a 457 visa holder and is designed to protect Australian workers and ensure that visa holders are undertaking skilled employment.

The Government has brought forward the review as part of an agreement with the Opposition to ensure the passage through Parliament of legislation to implement the landmark China-Australia Free Trade Agreement.

Mr Azarias will provide a report to Government at the end of April 2016. As recommended by the 457 Integrity Review, the TSMIT will be retained at $53,900.00 until the findings of the review are considered by Government.

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Corporate Visa Lawyers - 457, 186, 400 visas

Nevett Ford Lawyers Melbourne offers in-depth experience and flexible solutions to even the most complex cases to develop a customized service model. This model is highly tailored to your corporate culture and ensures that they are in compliance.

Our comprehensive consulting and compliance services include:

• Providing assistance with the development of internal immigration policies.
• Evaluating compliance issues.
• Assessing the immigration impact of a merger or acquisition.
• Developing immigration solutions.

In addition to the compliance services we offer in our end-to-end case management services, including:

• Development of internal immigration policies,
• Review of existing practices to protect you from inadvertent non-compliance with immigration laws,
• Assessment of the impact of mergers and acquisitions and divestitures on overall immigration program,
• Continuous monitoring to ensure compliance and maintenance of proper legal status dependent on the type of visa or work permit required,
• Training and guidance to human resources departments or business units on compliance requirements, including fines and penalties that may be imposed for failure to comply, and
• Advice on complex immigration issues and the development of customized processes involving more than one employee and/or country (such as group moves of consultants or auditors into various countries for short-term assignments)

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Labor's 457 changes under review

The Department of Immigration & Border Protection (DIBP) is to undertake a review of Australia's 457 visa program.

A four-member panel, led by former public servant John Azarias, will conduct the review,

It has a mid-year deadline for its final report.

Also on the panel, which the assistant minister described as independent, are Professor Peter McDonald and ACCI director Jenny Lambert.

The Coalition last year opposed the former Labor government's June amendments to the Migration Act 1958, which reintroduced labour market testing (LMT) requirements for employers seeking to sponsor 457 visa workers and gave compliance powers to Fair Work inspectors.

ACTU secretary Dave Oliver says the Coalition's review is about helping employers fill job vacancies with international workers, and came "in the same month that saw the release of the worst unemployment figures in over a decade".

"This is appalling policy that will make it more difficult for the growing number of Australians who have lost their jobs to find work," he says.

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