Changes of Training Benchmarks for Subclass 457 and Subclass 186 ENS (Direct Entry) Visas
Criteria for Training Benchmarks A & B recent expenditure, time frames, acceptable training expenditure and the definition of payroll have changed since 1st July 2017 as follows:
Recent expenditure
For Training Benchmark A (TBA) this is at least 2% of payroll expended in the previous financial year OR in the previous twelve months, as evidenced by receipts for payment or a letter from the relevant fund.
For Training Benchmark B (TBB) this is at least 1% of payroll expended in the previous financial year OR previous twelve months and evidenced by a receipt for the payment(s) or an employment contract for the relevant individual whose salary payments are counted towards the benchmark.
Acceptable expenditure for TBA
Only expenditure made to the following funds are acceptable for TBA purposes:
- an industry training fund
- a fund managed by a recognised industry body
- a recognised scholarship fund operated by an Australian university or TAFE college
Expenditure that will not be accepted for TBA:
- training funds operated by RTOs or private individuals
- funds that allocate a percentage or part of the contributions as commissions or offer refunds for failed immigration applications
Applicable expenditure for TBB
The expenditure that may count towards this benchmark has been amended and more clearly defined. Changes include:
- the addition of reasonable travelling costs to training venues
- face to face training delivered by RTOs must contribute to an Australian Qualifications Framework qualification
- only the salary of persons whose sole role is to provide training to Australian employees may be claimed
Expenditure that will not be accepted:
- training not relevant to the industry the business operates within
- training undertaken by principals of the family and their family members
- induction training
- staff salaries for undertaking training courses
- purchase of general software
- membership fees, books journals and magazine subscriptions
- attending conferences unless for cpd purposes
Definition of Payroll
The definition of payroll has been clarified and is specified as the the total amount of the payments made to employees and to contractors and subcontractors, whether or not such payments are included for payroll tax purposes or not.
The methods for calculating training expenditure requirements where there is no payroll have not changed.
These changes commenced on 1 July 2017.