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IMPACT – HIGH
What is the change? Employers must begin paying levies to the Skilling Australians Fund for all nominations lodged on or after Sunday, 12 August.
What does the change mean? The levies will significantly increase the cost of nominating foreign workers in the Temporary Skill Shortage category, the Employer Nomination Scheme, and the Regional Sponsored Migration Scheme.
Skilling Australians Fund fee schedule:
Background: The Skilling Australians Fund legislation, which was passed on 9 May, imposes levies on employers to fund training and skills programs for Australian workers. Employers must pay the levy in full at the time applications are lodged.
Importantly, the Skilling Australians Fund removes the requirement for employers to show that they have met the training benchmarks for the purposes of 482,186 and 187 nominations. Instead, a flat fee is payable to the government.
The Skilling Australians Fund legislation also makes changes to the period during which labour market testing must have been made for 482 nominations. Labour market testing must be undertaken no more than four months prior to the application and must be for a duration of 28 days. Further clarity will be provided once regulations and procedural documents are released early next week.
BAL Analysis: Australian companies should plan for the introduction of the new fees for applications lodged this Sunday and thereafter. They should also anticipate slight delays during the transition as there is likely to be an influx of applications by employers seeking to file before the fees take effect.
This alert has been provided by the BAL Global Practice group and Hammond Taylor in Australia. MARN 1068140. For additional information, please contact your BAL attorney.
Copyright © 2018 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.
IMPACT – MEDIUM
What is the change? A legislative instrument has passed that will raise Government visa application fees on most types of visas.
What does the change mean? The new fees will apply to applications filed 1 July 2018 and thereafter.
Background: The Government has increased the fees to keep up with inflation, and most of the increases are around 2 per cent. Dependent applicant charges will also increase for each visa category.
BAL Analysis: Employers and individual visa applicants should review the new fees and make sure that applications lodged on and after 1 July follow the new fee schedule.
This alert has been provided by BAL Australia. For additional information, please contact australia@bal.com.
MARN: 0101248
What is the change? The Skilling Australians Fund legislation will take effect in the first quarter of the 2018-19 fiscal year (July to September 2018).
What does the change mean? When implemented, employers sponsoring foreign workers for Temporary Skills Shortage Visas, or under the Employer Nomination Scheme or Regional Sponsored Migration Scheme will be required to pay a skills levy for each worker at the time of nomination. Updated changes to labour market testing have also been announced.
Background: The Skilling Australian Fund legislation was passed on 9 May and imposes levies on employers to fund training and skills programs for Australian workers. Employers must pay the levy in full at the time applications are lodged.
The legislation also amended labour market testing rules, requiring that advertisements be placed for four weeks and no more than four months before the nomination is lodged, and state the skills or experience that are appropriate for the position. These provisions have not yet been implemented and employers can continue to advertise according to current rules for TSS visas.
Authorities have also expanded the acceptable advertising media to include certain online recruitment platforms and industry-specific recruitment websites. The labour market testing changes are available here.
BAL Analysis: Employers should discuss the additional costs and work with their BAL professional to address challenges in recruiting and hiring international talent. Companies may contact their BAL professional for details on the labour market testing rules.
What is the change? The Department of Jobs and Small Business has opened a public consultation period requesting feedback from employers and other immigration stakeholders on possible changes to skilled migration occupation lists.
What does the change mean? The Department has published a traffic light bulletin indicating the occupations under consideration for change. The public comment period closes 30 June 2018, and comments will be taken into consideration before the changes are finalised.
Background: The Department of Jobs and Small Business undertakes regular reviews of Australia’s Short-term Skilled Occupation List (STSOL), Medium and Long-term Strategic Skills List (MLTSSL) and Regional Occupation List (ROL). The Department recently published a traffic light bulletin, highlighting changes that are under consideration, including:
Interested parties are invited to provide comments on any potential changes to the occupations lists, whether or not the Department has proposed them in the traffic light bulletin.
BAL Analysis: BAL encourages employers to review the traffic light bulletin and submit comments to make their concerns known to the Department and to help shape the occupation lists that determine eligibility for skilled workers. BAL can assist in the process.
MARN: 0534021
What is the change? The Skilling Australians Fund Act received Royal Assent Tuesday and will take effect this year.
What does the change mean? The legislation requires employers to pay significant levies when nominating foreign workers in order to fund training programs for Australian workers. Employers must also fulfil additional rules on job advertising to meet labour market testing requirements.
Skills levies: Under the Act, employers will pay a “nomination training contribution charge” of up to a maximum of A$8,000 for nominations for a temporary visa and A$5,500 for nominations relating to a permanent visa for the current fiscal year ending June 30. The figures will be increased annually.
Labour marketing testing: Several rules on labour market testing advertising are also included in the Act. Advertising must be conducted within four months before the nomination is lodged, must set out the skills and experience required and be targeted so that a significant proportion of qualified Australians would be aware of the position, must be posted for at least four weeks, and a copy of the advertisement may be required to accompany the nomination. The Minister for Immigration and Border Protection may set the language, method, period and duration of advertisements.
BAL Analysis: Companies should budget for the upcoming Skilling Australians Fund levies and amend their job advertising practices to comply with the new rules. The levies will be due in full for each nominee at the time of nomination.
This alert has been provided by BAL Australia. For additional information, please contact australia@bal.com
What is the change? Authorities in Senegal say they will no longer allow foreign workers to start assignments in anticipation of their work permits being issued.
What does the change mean? Foreign workers must obtain their work permits in Senegal before beginning work, which will delay assignment start dates. This is because foreign nationals previously could begin assignments in Senegal once they obtained their medical report, which is one of the first steps in the overall work permit application process.
Background: Up until now, foreign nationals have been allowed to enter Senegal on a business visa and begin working after obtaining their medical report and while their work permit application was still pending. Labor authorities recently issued a directive, however, saying that this will no longer be allowed. As a result, employers must now detail projected start dates in their employment contracts since the actual assignment start dates will depend on when the work permit is issued. The new rule is one among what could be a string of immigration changes in Senegal. Authorities have also discussed the possibility of introducing short-term work permits to replace the current allowance of short-term work on the basis of visitor status, a quota system for foreign workers and the introduction of designated in-country facilities for obtaining medical reports similar to the facilities recently introduced by the Immigration Service in Ghana.
BAL Analysis: Employers should be sure foreign workers have obtained their finalized work permit before allowing them to begin work in Senegal. Employers may need to adjust their schedules and will have to include projected start dates in their employment contracts. BAL will continue following other developments in Senegal and will provide additional information as it becomes available.
This alert has been provided by the BAL South Africa office. For additional information, please contact africa@bal.com.
What is the change? The Senate has passed legislation authorising the Skilling Australian Fund to develop training and apprenticeship programs for Australian workers.
What does the change mean? Employers who sponsor foreign employees for visas under the Temporary Skills Shortage program, the Employer Nomination Scheme or the Regional Sponsored Migration Scheme will be required to pay a levy into the fund.
Background: The Skilling Australian Fund Act passed the Senate Monday after being delayed in February due to scheduling limitations. The bill previously passed the House.
Two amendments were added to the bill. One amendment requires that labour market testing be conducted within four months before a nomination is received and that advertising be conducted for four weeks and include the skills and experience appropriate to the position and significantly inform qualified Australians of the position. The other amendment requires an independent review of the fund 18 months after it takes effect and to be completed within six months.
The fund is estimated to collect $1.5 billion over four years and will seek to fund 300,000 employment-related training and apprentice programs.
BAL Analysis: Employers should prepare for introduction of the skills levy, or “Nomination Training Contribution Charge,” within the coming weeks.
Copyright © 2017 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.
What is the change? The Migration Institute of Australia has provided additional details on Australia’s forthcoming Global Talent Scheme.
What does the change mean? The programme, which will be piloted for one year beginning 1 July, will allow established businesses and start-ups to sponsor qualified foreign workers on Temporary Skill Shortage (Subclass 482) visas. Qualified applicants will enjoy simpler applications and shorter processing than standard TSS visa applicants.
Background: The Australian Government announced plans for the Global Talent Scheme this week, recognising the “fierce competition” globally for tech specialists and other highly skilled workers. The Global Talent Scheme will have two components: the Established Business Stream and the Start-Up Stream.
To establish their eligibility, businesses will need to demonstrate that they give preference to Australian workers. Considerations may include the percentage of a company’s workforce that is Australian and the company’s efforts to train Australians. The business cannot have any breaches of workplace or immigration law on their record. They must pay workers according to an Enterprise Agreement or salary table that meets market salary rates. Companies must be publicly listed or have an annual turnover of at least A$4 million in each of the last two years in order to qualify. They will be required to conduct a labour market test before filling a position with a foreign worker.
Applicants in this stream will be required to meet health, character and security requirements. They cannot have any relatives who are company shareholders or directors. They must have adequate qualifications and at least three years of experience relevant to the position they would be filling. They must show they will be able to transfer skills to Australian workers and must have a salary of at least A$180,000 per year. Visa holders who lose their job will have 60 days to find a new sponsor, obtain a new visa or leave the country.
To establish their eligibility in this stream, start-up companies must operate in a STEM field. They will have to meet the same criteria as companies in the Established Business Stream on policies regarding Australian workers and corporate citizenship. A forthcoming start-up authority will have to recognise the company in order for it to be eligible. Financial criteria are yet to be established.
Visa applicants in the Start-Up Stream must meet the same criteria as applicants in the Established Business Stream, with the exception of the salary requirement. In the Start-Up Stream, applicants must earn at least the market rate salary and no less than the Temporary Skilled Migration Income Threshold. As in the Established Business Stream, visa holders who lose their job will have 60 days to find a new sponsor, obtain a new visa or leave the country.
An MIA fact sheet on the Global Talent Scheme is available here.
BAL Analysis: The Global Talent Scheme could prove to be a good option for qualified employers looking to sponsor highly paid foreign workers or specialists. BAL will continue to monitor the roll out of the new programme and will alert clients to new information as it becomes available.
What is the change? The Australian Government has announced plans for a new Global Talent Scheme pilot programme aimed at attracting high-income employees and tech specialists.
What does the change mean? The programme will be piloted for the one-year period beginning 1 July, and will feature two components. The first will allow established businesses with an annual turnover of more than A$4 million to sponsor highly skilled workers making more than A$180,000 per year. The second will allow tech- and STEM-based star-up companies to sponsor foreign workers with specialised tech skills. Workers who qualify through either route will be issued a four-year Temporary Skill Shortage (Subclass 482) visa and will be able to apply for permanent residence after three years.
Background: In announcing the program, Government officials recognised the “fierce competition” globally for tech specialists and other highly skilled workers. China, Canada, France and Israel are among a number of countries that have taken steps recently to use immigration incentives to draw top-level foreign workers. Alan Tudge, Australia’s Minister for Citizenship and Multicultural Affairs, said the programme is part of the country’s “ongoing reforms to our skilled visa programmees to ensure that Australians have priority for Australian jobs, but acknowledge that there are times when the skills are not available in the country.”
Officials said they will continue to work on the programme’s details over the next couple of months before the 1 July kick-off date. Employers sponsoring high-income workers through the programme will be required to demonstrate that they prioritise the employment of Australians and have plans in place to transfer the foreign employee’s skills to the Australian workforce. Start-up companies will have to be recognised by a forthcoming start-up authority in order to be eligible and will also be required to show that they have a track record of hiring and training Australians.
BAL Analysis: The Global Talent Scheme could prove to be a good option for employers looking to sponsor highly paid foreign workers or tech specialists. Details of the programme must still be finalised. BAL will continue to follow developments in Australia and will alert clients to any significant changes.
This alert has been provided by the BAL Global Practice group and our network provider located in Austria. For additional information, please contact your BAL attorney.
What is the change? Australia has published regulations to overhaul key high-skilled visa programmes.
What does the change mean? Effective March 18, the Temporary Skill Shortage (Subclass 482) visa will replace the Subclass 457 visa. Applicants will need to satisfy new criteria, including criteria related to work experience, English language skills, salary minimums and police clearance. Related changes to the Subclass 186 and 187 visa programmes will also take effect. Transitional arrangements may be available.
Key changes: The Introduction of the Temporary Skill Shortage (Subclass 482) visa.
The TSS visa will replace the Subclass 457 visa 18 March. The visa will have three streams: short-term, valid for up to two years (or up to four years if the two-year limitation would be inconsistent with an international trade obligation); medium-term, valid for up to four years; and the labour-agreement stream, which will allow employers to sponsor foreign workers for a visa pursuant to a labour agreement with the Australian Government.
To be eligible for TSS visas, applicants will have to satisfy the following criteria:
Sponsors may be subject to non-discriminatory workforce tests to ensure employers are not discriminating against Australian workers. Officials previously clarified that the tests will not be conducted for all TSS applicants. Tests can be expected in cases where a company’s workforce does not match the industry norm, for example, in situations where sponsored workers are far greater than the number of Australian workers.
Labour Market Testing will be mandatory for TSS visa applications, but details on how positions must be advertised have not been finalised. A new Skilling Australians Fund for training Australian workers will also be introduced. Legislation authorising collection of a fee from employers to fund the skilling of Australian workers has also not yet been finalised.
Key changes: ENS and RSMS visa programmes.
The regulations make related changes to the Employer Nomination Scheme (ENS) (subclass 186) and the Regional Sponsored Migration Scheme (RSMS) (subclass 187) programmes. Applicants will have to satisfy the following criteria:
Nominees may be eligible for transitional arrangements. Employers in both subclasses will also be required to contribute to the Skilling Australians Fund once it is implemented.
BAL Analysis: Employers are encouraged to familiarise themselves with the information that is available about the forthcoming changes. BAL continues to review the regulations and will provide additional information as it becomes available. Please contact your BAL professional for questions about transitional arrangements.