AUSTRALIA: Visa Application Charges (VACs) Set to Increase

The 2017-18 Budget handed down on 9th May 2017 affects sponsoring employers and visa applicants. All current first instalment VACs will rise by around 2% on 1st July 2017 and then be indexed annually.

The current and new application fees for subclass 457 and 186 visas are shown below and a full list of the VAC increases is available here.

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New Foreign Worker Levy

A levy will replace the current training benchmarks for employers sponsoring foreign workers on both temporary and permanent visas from March 2018.

Businesses with turnover of less than $10 million per year will be required to:

  • make an upfront payment of $1,200 per visa per year for each employee on a Temporary Skill Shortage (TSS) visa
  • make a one-off payment of $3,000 for each employee being sponsored for a permanent visa under the Employer Nomination Scheme (subclass 186) or the Regional Sponsored Migration Scheme (subclass 187).

Businesses with turnover of $10 million or more per year will be required to:

  • make an upfront payment of $1,800 per visa year for each employee on a Temporary Skill Shortage (TSS) visa
  • make a one-off payment of $5,000 for each employee being sponsored for a permanent visa under the Employer Nomination Scheme (subclass 186) or the Regional Sponsored Migration Scheme (subclass 187).

The government estimates that this levy will raise $1.2 billion over the forward estimates period. The revenue raised will contribute to the new Skilling Australians Fund, with a particular focus on apprenticeships and traineeships.

For more information about how these changes affect your business please contact your Newland Chase consultant or, for information on Australian immigration in general, please email us at enquiries@newlandchase.com.

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