The Department of Home Affairs (DHA) has clarified that employers who lodge a nomination transfer for an existing 457/482 visa holder will only be liable to pay one year of the Skilling Australians Fund (SAF) Levy. This is regardless of how long the employee has left on their 457/482 visa.
Why was there confusion previously?
In September 2018 the DHA advised that employers who transfer existing 457/482 holders onto their sponsorship will only be liable to pay one year of the Skilling Australian Fund (SAF) Levy.
In contradiction to this, DHA officers have been advising 457/482 visa holders that they would be in breach of their visa conditions if they worked for their new employer for longer than the SAF Levy was paid for.
The DHA has now clarified that 457/482 visa holders who have a nomination transfer will not be in breach of their visa conditions by continuing to work at their employer beyond the period the SAF Levy was paid for.
How does this benefit my business?
This has the potential to save employers up to $5,400 when doing nomination transfers. Employers will now only be required to pay one year of the SAF Levy (either $1,200 or $1,800 depending on your businesses turnover).
What challenges will this create for my business?
Employers will have a significant financial incentive to seek out existing visa holders to reduce costs involved in the employer sponsorship process. This risks increasing competition for onshore 482/457 visa holders and will place greater focus on sponsors developing stronger retention programs.
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