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Question: Am I eligible to sponsor (as a business)? What are training benchmarks?

Rather than regurgitating what is explained on the official immigration website, I am going to answer this question as simply as possible.

Ok…

If you are a NEWLY ESTABLISHED business (operating for less than 12 months or just starting up), then in order to meet the training requirement (for the 457 Sponsorship Stage), you are required to demonstrate that your business will make a genuine commitment to training. This is usually evidenced with an Auditable Training Plan. You can obtain these from training organizations or education institutions that offer training (such as TAFE’s for example). Alternatively you could create one yourself.

Now…

If you are an established business (operating for 12 months or more), then you are required to demonstrate that you have an established training record. You are required to show that you have training expenditure in the last financial year, or within the current financial year.

For ESTABLISHED businesses, there are two ways to show that you have sufficient training expenditure that will satisfy the 457 Sponsorship Stage requirements.

You have to either show:

Option 1) That you are spending at least 1% equivalent of your total gross payroll (total wages to both internal staff and external contractors, if you have any) towards training Australian (citizens or permanent residents) staff within your business;

OR 

Option 2) That you have paid (as a donation expenditure) at least 2% equivalent of your total gross payroll towards an industry training fund, in the same industry as your business to train future Australians. This option is especially suitable for businesses that do not have any Australian staff within the business.

So there you have it. That is the “training requirement” explained in layman’s terms.

If you need help determining if you meet the training requirement, or need help with meeting it, and finding suitable industry training funds or training options, please email us at [email protected] or call us on 1300 619 977.

From the desk of Yuri Marshall | Changing Lives Everyday

 

4 comments

  • Avatar
    RobReply February 27, 2018 at 8:21 am

    Hello

    I am on a 457 visa and have been living in Australia since January 2015, in November 2018 we applied for an ENS 186. I am of the beliefs that when we look at citizenship application we can use our November 2017 submission date as the start of our PR and not the approval date (whenever that comes through). Therefore we would be able to apply for citizenship in January 2019.

    This is of course assuming that the proposed legislation to amend the citizenship act of 2007 is NOT approved or doesn’t change the residency requirements for PRs.

    Thank you for your advice and all the information on your site.

    • VisaOne
      VisaOneReply February 27, 2018 at 11:32 am

      Hi Rob,
      We have received your enquiry. One of our visa experts will be in touch with you via email. :)

  • Avatar
    JayReply March 8, 2017 at 10:14 am

    You can obtain these from training organizations or education institutions that offer training (such as TAFE’s for example). Alternatively you could create one yourself. is this mean any entity or should be RTO ?

    many thanks

    • VisaOne
      VisaOneReply March 8, 2017 at 11:20 am

      Hi Jay,
      We have received your enquiry. One of our visa experts will be in touch with you via email. :)

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