Federal Government Introduces Bills To Establish Levy For Employers Hiring Foreign Workers
Wednesday 25 October 2017 @ 2.06 p.m.
The Federal Government has introduced two bills into Parliament that aim to establish the legislative framework for their budget promise of establishing a “Skilling Australians Fund” by introducing a levy on employers that hire foreign workers. The Migration (Skilling Australians Fund) Charges Bill 2017 and the Migration Amendment (Skilling Australians Fund) Bill 2017 were introduced into the House of Representatives on 18 October 2017 by the Minister for Immigration and Border Protection, Peter Dutton.
Introducing the Migration Amendment (Skilling Australians Fund) Bill 2017, Mr Dutton said:
“The establishment of the Skilling Australians Fund will create a direct link between skilled migration and the training of Australians. The government is committed to skilling Australians so they can get jobs at all levels and occupations across the Australian economy…
The Skilling Australians Fund is a further demonstration of the government's commitment to Australian businesses and to Australian workers. It will support targeted investment in critical skill needs in key regions and industries in the economy. The administration of the Skilling Australians Fund levy will also increase the transparency and accountability of training contributions made by employers utilising the skilled migration program. This will increase public confidence that skilled migration, and the businesses that bring in skilled migrants, are doing their part to help Australians prepare for the workforce.”
The Skilling Australians Fund
According to a Fact Sheet on the Department of Education and Training website, the Fund will replace currently provided funding under the National Partnership Agreement of Skills Reform. The Fact Sheet says that from 2017-18 to 2021-21, there will be an estimated $1.5 billion available in the fund, with “matched funding” from states and territories.
The money will be spent on “projects brought forward from states and territories which support apprenticeships, traineeships, and pre- and higher-level apprenticeships and traineeships.” According to the Fact Sheet, areas of priority for funding are:
- occupations in demand
- occupations with a reliance on skilled migration pathways
- industries and sectors of future growth
- trade apprenticeships
- rural and regional areas
- people from targeted cohorts.
The SAF Levy
The Skilling Australia Funds levy (the “SAF levy”) will be payable from March 2018, and will be payable by employers who nominate workers for three types of visa – the Temporary Skill Shortage (TSS) visa (replacing the current Temporary Work (Skilled) Subclass 457 visa); the Employer Nomination Scheme (ENS) (subclass 186) visa and the Regional Sponsored Migration Scheme (RSMS) (subclass 187) visa.
The amount of the SAF levy will be set by regulations, with the Acts containing “charge limits” that the levy cannot exceed.
In the second reading speech for the Migration Amendment (Skilling Australians Fund) Bill 2017, Mr Dutton outlined the planned initial amounts of the SAF levy saying:
“It is intended that small businesses—that is, those with annual turnover of less than $10 million—will be required to pay:
$1,200 per year for each temporary overseas worker
a one-off Skilling Australians Fund levy of $3,000 for each permanent overseas worker.
Businesses with an annual turnover of $10 million dollars or more will be required to pay:
$1,800 per year for each temporary overseas worker and
a one-off payment of $5,000 for each permanent overseas worker.”
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Sources:
Migration (Skilling Australians Fund) Charges Bill 2017 and Migration Amendment (Skilling Australians Fund) Bill 2017, Explanatory Material and Second Reading Speeches available from TimeBase's LawOne service
Skilling Australians Fund Fact sheet (Department of Education and Training, 10 May 2017)
