Standard Business Sponsorship – Training Benchmark

One of the requirements that a sponsor needs to satisfy in order to obtain Standard Business Sponsorship and sponsor Subclass 457 visa applicants is the ‘training benchmark’ requirement.

If the business has been trading in Australia for 12 months or more, in order to satisfy the ‘Training Benchmark’, it needs to satisfy one of the following pathways:

  1. Pathway 1 – Demonstrate that in the last 12 months prior to the lodgement of the SBS application, the business has allocated payments to an industry training fund and these payments equate to at least 2% of the payroll of the business. The business must be operating in the same industry as the industry training fund. Furthermore, The business must make a commitment that it will maintain such payments (i.e. 2% of total payroll) in each fiscal year for the term of the SBS approval; or
  2. Pathway 2 – Demonstrate that in the last 12 months prior to the lodgement of the SBS application, expenditure on the training of Australian citizen or permanent resident employees of the business equates to at least 1% of the payroll of the business. The business must also make a commitment that it will maintain such expenditure (i.e. 1% of total payroll) on training in each fiscal year for the term of the SBS approval.

Pathway 1

If a business does not employ any Australian citizens or permanent residents, then it will only be to apply by satisfying pathway 2 by contributing to an industry training fund that is in the industry that it is operating in. An industry training fund is statutory authority which is responsible for providing funding for training of eligible workers in certain industries.

The business will need to provide evidence of contributing to such funds such as through receipts or a letter from the relevant fund.

Pathway 2

What types of expenditure can be counted towards the Training Benchmark? 

You can only count the expenditure of the business entity. You cannot count the training expenditure of a related entity.

You will firstly note that you can only count training expenditure for employees who are Australian citizens and permanent resident. The following are examples of training expenditure which the business can count towards the Training Benchmark:

  • Evidence of expenditure on external training.
  • If the business employs an individual and a key part of this person’s role is to train the business’ employees who are Australian citizens or permanent residents.
  • Employment of apprentices, trainees or recent graduates in on-going roles. The number of these individuals needs to be proportional to the size of the business. In relation to the hiring of recent graduates, only the formal training aspects of the graduate position can be included (see below for further information)
  • Funding a scholarship in a formal course of study approved under the Australian Qualifications Framework where this is part of the business’ training strategy. If your business does fund scholarships, then a key consideration in DIAC assessing whether this formal course of study is part of the business’ training strategy is the relevance of the course of the business. In any case, relevance is given a broad interpretation.
  • Structured internal on-the-job training. Such training needs to have clearly defined goals that are aimed at increasing the employees’ skills and experience with progression through the various stages of the training. For such internal training, the business should to evidence the following:
  1. The learning outcomes of the employee at each stage;
  2. How the progress of the employee will be monitored and assessed;
  3. How the program will provide additional and enhanced skills;
  4. The use of qualified trainers to develop the program and set assessments; and
  5. The number of people participating and their skill/occupation.

You cannot count the wages of the Australian citizens or permanent residents that the business pays while these employees are attending training (except where the staff are apprentices, trainees or recent graduates).

The actual expenditure on training has to be quantifiable. For instance, where training is provided by a franchise head office, the applicant needs to show exactly what percentage of the franchise fee is attributed to training. We cannot count the whole franchise fee nor can we accept an estimate of the training component; there would need to be some evidence from the franchisor confirming the actual percentage.

The same principle applies to all the training expenditure that the business is including.

Definition – Payroll Expenditure

Payroll refers to the amount of money which an employer pays in wages to their employees in the 12 months prior to application lodgement. Payroll expenditure includes any wages, remuneration, salary, commission, bonuses, allowances, superannuation contributions (mandatory or otherwise) or eligible termination payments that are defined as wages in the Act relating to payroll tax in the relevant State/Territory.

A business can assess whether this requirement is met by calculating its total expenditure on training of Australian citizens and permanent residents and its total expenditure on payroll for the last 12 months, and determining whether total expenditure of training equates to at least 1% of payroll.

Commitment to Continued Satisfaction of Training Benchmark

This commitment is made as part in the application form for SBS. Depending on how the business satisfies the Training Benchmark, the business will need to certify/provide evidence demonstrating one of the following:

  1. Certify that the contribution to the industry training fund will be made each fiscal year; or
  2. Demonstrate that the training provided Australian citizens or permanent residents employees is part of an ongoing organisational training strategy; or
  3. Demonstrate that the employment of apprentices, trainees or graduates is part of an ongoing organisational training strategy.

Training provided by a third party

If the business is including the cost of training that is provided by an external party, then the business will need to submit invoices and receipts which confirm the cost of the training and that the training occurred within the last 12 months prior to lodgement of the SBS application. If available, the business should also submit documents relating to the training provided (e.g. handouts, slides etc.). These documents will allow DIAC to better understand the purpose of the training and the intended learnings and professional development outcomes.

Inclusion of on-the-job or internal training

Expenditure on on-the-job or internal training can be counted towards the Training Benchmark if this training is part of a formal, structured course with identified learning outcomes that contribute to the upgrading of skills of employees.

Inclusion of salaries of Apprentices & Trainees

Apprenticeships and traineeships are, by definition, training positions. Consequently, if the business employees apprentices and/or trainees, 100% of these employees salaries can be counted towards satisfying the 1% of payroll Training Benchmark.

The business needs to show that there is a formal apprenticeship or traineeship agreement in place (known as a Training Contract) which has been lodged with the relevant State or Territory government authority. The Training Contract should be submitted as supporting evidence in the SBS application.

You can count expenditure for hiring apprentices and/or trainees which the business has hired via a third party such as a recruitment agency or Group Training Organisation (GTO).

Inclusion of salaries of Recent Graduates

A recent graduate is considered as someone who has completed their higher education studies within the last 24 months prior to the lodgement of an application for approval as a standard business sponsor. Furthermore, the role which the graduate is working in needs to be relevant or related to the subject of their recently completed qualification (although DIAC is likely to give this a broad interpretation).

A recent graduate’s salary can only be counted towards the Training Benchmark if the graduate will be participating in a formal, structured graduate program for up to two years, or is completing a professional year following their graduation. If this is satisfied, then 100% of the graduate’s salary can be counted.

If the graduate is not participating  in a formal, structured graduate program or completing a professional year following their graduation, then the business can only count the expenditure on the graduate position that is part of the formal training aspects of the graduate position. While the graduate is undertaking formal training, you can count the wages that the business to this employee during the course of the formal training.

Final note before lodgement

As with presenting any information to DIAC, your should try to ensure that the information is easy to understand and that you are guiding the case officer wherever this is necessary. The DIAC case officer should not need to formulate his or her own interpretation of your application, or the documents and information that you are presenting.

Your case officer will not have nearly the same level of knowledge about your business as you do. Do not assume that your case officer will understand and interpret the various components of your application in the same way you. This is particularly the case with SBS applications because every business is difficult and every business has difficult methods for delivering training to its Australian citizen or permanent resident employees. This is unlike visa applications where generally, every applicant are required to submit a standardised set of documents and information such as his or her passport, resume and qualifications which are relatively straightforward to understand.

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160 thoughts on “Standard Business Sponsorship – Training Benchmark

  1. David

    The use of qualified trainers to develop the program and set assessments;

    So the qualified trainers have to be third party which offering training program?

    Reply
  2. Douglas

    Hi Peng,

    Just going through the process of ‘gathering all possible forces’ to meet the distressing 1% training benchmark. I have a question I was wondering you could help us with..

    When I first applied for sponsor back in 2010, the training given to a post-graduate counted as training. Now, he’s finished in Dec 2011, so I can only try to use his wages as he continued working with us.

    But does wages paid to a post-graduate who was funded training by the company before and continued working for the same company count? Are graduates considered people who finish higher education of any sort or only the standard 4 years of Uni?

    Really appreciate the help.

    Cheers,

    Reply
    1. Peng Cheng Post author

      Hi Douglas
      No for the wages of your graduate question since he completed his studies while ago, and I assume that he is no longer working in a graduate program.
      PC

      Reply
    2. Conor

      Hi Peng,

      I am just going through the process of applying for PR. My employer sponsored me 2 years ago for a 457.

      I was wondering does my employer need to spend 1% on training to become a nominee for 186 visa?

      Thanks,

      Conor

      Reply
      1. suni

        Hi dear
        I apply for my 186 visa case office ask me for recipt of 2014 training and evidence of trainee details
        On receipt it’s says 6 trainee but I have only two people training evidence
        Is it OK for it
        Thanks
        Sunil

        Reply
        1. Peng Cheng Post author

          Hi Sunil,
          Please see above post – training needs to benefit Australian citizen or permanent resident employees.
          Please see Contact Us page and in relation to our Consultation Service – feel free to contact us if you need advice in relation to this requirement.
          PC

          Reply
  3. Charles

    Hi Peng,

    This is a really interesting post. I have a question regarding the assessment of a nomination by the DIAC.

    If the company doesn’t meet the training requirement on a lodged nomination, for example, they have 0.5% of the payroll spent in training instead of 1%.

    Is the DIAC give a bit of time to the company to fix the problem? Or is the company will see its nomination cancelled without any notice. Thus the DIAC will also cancelled the visa application lodged by the employee as well.

    I will greatly appreciate your help.
    Regards, Charles

    Reply
    1. Peng Cheng Post author

      Hi Charles,
      That is up to the case officer. CO can refuse if the eligibility requirements aren’t met. They can contact your employer and give them a chance to meet the requirements – but CO providing your employer with such a chance is not guaranteed.
      PC

      Reply
  4. Elodie

    Hi peng,
    I have a problem to meet the benchmarking requirement. I have a partnership business, and we do not have any payroll, as we manage ourselves the business (with my husband). We don’t pay any GST either.
    What solution can you recommend to meet the requirement?
    Thanks very much for your help.
    EC

    Reply
    1. Peng Cheng Post author

      Hi EC,
      Based on the below policy, I would say that DIAC would count profits as equivalent to salary – and since you have no employees to train, you will need to use Pathway 1 described above – Demonstrate that in the last 12 months prior to the lodgement of the SBS application, the business has allocated payments to an industry training fund and these payments equate to at least 2% of the payroll of the business:
      If the applicant for approval as a standard business sponsor is a sole trader who has not employed any staff previously and has not drawn a wage from the business himself; decision makers may consider the actual profit of the business for the last 12 months as being equivalent to the payroll of the business for the purposes of regulation 2.59(d).
      PC

      Reply
  5. Syed

    Hi Peng,

    1% training requirement should be equivalent to the Total pay roll of the company nationally or total pay roll for the relevant state or territory u work, If I am based in Melbourne does my company have to show 1% in training for the whole business nationally or equivalent to Victorian pay roll is sufficient?

    will appreciate any assistance.

    Thanks

    Reply
  6. N Patel

    HI PC,

    Could you please suggest me following…
    I m employed as 457…
    if My company did not do contribution for training batch mark A since 2 years…
    Can we paid 2 % training for two years together…at tafe ..is it valid to immigration for ENS application?

    Waiting for your kind and quick reply…

    Thanks,

    Reply
    1. Peng Cheng Post author

      Hi Patel,
      Technically, your employer would not be satisfying the legal requirement even if they pay for the total cost of the required training now. If they pay the total cost now, the case officer can exercise discretion and decide that this requirement is satisfied, however, they can also decide that it is not satisfied and refuse the application.
      PC

      Reply
  7. Rhyme

    Hi Peng,
    Can you elaborate more on the hiring recent graduates with a structured program? Can you give some examples on that?
    Thanks

    Reply
    1. Peng Cheng Post author

      Hi Rhyme,
      For example, large companies often have 12 month rotation programs for new graduates.
      PC

      Reply
  8. Arif

    Hi Peng,

    My partner is on a 457 visa till DEC 2015. After completed 2 years of sponsorship she applied for 186 visa through her employer. I was included in the application as her partner. The nomination by the employer has just been refused and she has been sent an email saying our application cannot be processed as the nomination is refused. It also says that even if we decide not to withdraw our application, if will be refused as the nomination was the basis of this application. Can we request a refund and re-apply ?

    What are the next steps/options for us ? Also, i was on a bridging visa while this application was being processed. What visa do i get now ? Do i need to apply for another type of visa ?
    Please assist.

    Thank You,
    Arif

    Reply
    1. Peng Cheng Post author

      Hi Arif,
      Don’t think that you can request a refund. You can reapply if you want.
      Your 457 visas are still valid so this is what you hold, and you will continue to hold this visa until it expires.
      Your bridging visa will cease shortly after the application is either withdrawn or refused.
      PC

      Reply
  9. Kusum

    Hi,
    Could u please give suggestion….
    M sponsored by the company and has applied for the PR. Now the problem is that the company has totally forgotten to meet up the training requirement for past 12mths.
    But the company has given traineeships to one of the staff and the course is ongoing so is it possible that the company writes a letter saying that the course is ongoing basis n the amount has meet up the training requirement.
    or is there any other solution to meet up the training requirements?

    Reply
    1. Peng Cheng Post author

      Hi Kusum,
      The Department would likely ask for evidence to demonstrate this training expenditure, such as an invoice demonstrating the cost of the traineeship course, or payslips demonstrating the wage paid to the eligible trainee employee.
      PC

      Reply
  10. roger

    Hi peng
    Ple suggest me about my ens. I applied in dec 2013 and co assigned 26 of may same day request for more information. Info submit in june since that have not heard anything..my MA sent email for update he didn’t reply.it is already 8 month since I apply for ens. Should I contact to co directly or keep waiting..u answer will be appreciated. Thnx

    Reply
    1. Peng Cheng Post author

      Hi Roger,
      You are allowed to contact the case officer since you have paid the Department and you are one of their clients – but following up probably won’t make any difference.
      PC

      Reply
  11. Monpasha

    Hi Peng,
    This 1% benchmark is proving to be quite the obstacle in my situation.
    My company does training for clients as part of an implementation procedure. Would this count towards the 1%?
    Also, what happens if we only manage say part of the 1% (~0.5%) how would that affect the nomination process?

    Thanks heaps,
    Monpasha

    Reply
    1. Peng Cheng Post author

      Hi Monpasha,
      Training for clients doesn’t count. The Department is likely to refuse the application if this requirement is not satisfied.
      PC

      Reply
      1. Monpasha Mukherjee

        Hi Peng,
        Me again! I have a question regarding the same thing; what’s the likelihood if we meet .3% in external training and can make up the rest (0.7%) through internal training? Also, is it advisable to apply for the nomination if that’s the case? We are able to provide details of previous trainings. Our company is extremely specialised and everyone (senior management and mid level management) has apron. 10 years experience in their field, which is why it makes it tricky for the company to find a training course that would benefit everyone or even a majority of the employees.

        Any help would be appreciated.

        Thanks,
        Monpasha

        Reply
          1. Monpasha

            Hi Peng,
            Just needed to confirm- trainings delivered online(via Skype/conference calls) by a third party (in this instance- Google) to a group of people (all Aus Residents/Citizens) as part of a service that we have recently purchased with them, would that count towards the 1%?

            Thanks,
            Mon

          2. Peng Cheng Post author

            Yes that can count – training provided by third parties that benefit Australian employees can generally be counted.

  12. Masud

    Dear Peng
    Thank you very much for your help in advance,if you have any spare time can you please answare my question.
    My employer got approved his SBS on DECEMBER 2011 and he made a training plan to get his SBS approve.
    on the training plan he proposed that he shows he will spend A$2128 which is 1% of payroll for training from 2012.Then company got SBS approved for three years until 2014 December.But on 2012 he spent more than 1% of payroll which was A$900,on 2013 he spent 1000 and 2014 he spent $1100.
    My question is-he should spend according on training plan what he proposed or he is right because he is spending according on payroll.
    He proposed that $2128 because that time extra more staff used to work but end of the year payroll he was $900 .So is he right according to meet training benchmark ?
    Regards
    masud

    Reply
    1. Peng Cheng Post author

      My question is-he should spend according on training plan what he proposed or he is right because he is spending according on payroll – As explained above, the requirement is to provide training that equates to at least 1% of payroll.

      Reply
  13. Steve

    Hi Peng, I have one question regarding the training benchmak to ask you. i on 457 for two years and thinking to apply 186visa under Temporary Residence Transition. for the training benchmark, do I show one year of training expenditure? lets say my company yearly payroll is $300k, so the training cost to show is $3000 when i apply for 186? thanks.

    Reply
    1. Peng Cheng Post author

      Hi Steve,
      Yes the employer needs to demonstrate that it has complied with the training benchmark requirement.
      PC

      Reply
  14. Mac

    Hi Peng

    My wife has been sponsored and granted 457 visa on 26th of December in 2013. nearly one year now.

    She would like to apply PR after 26/12/2015.

    my question is her company should pay the training fee on each year and when is the due day to pay.

    I guess it is 26/12/2014 for this year but I am not sure. because her company has not paid it yet so far.

    Looking forward to your reply .

    Thanks.

    Mac

    Reply
    1. Peng Cheng Post author

      Hi Mac,
      Yes the employer needs to satisfy the training requirement for each 12 month period from the date that they are approved as a business sponsor.
      PC

      Reply
  15. Tina

    Hi Peng,

    I was wondering, if there is a possibility to withdraw a nomination? I was sponsored by my employer (visa 457) in one company and we have opened another company and she lodged a nomination to transfer my sponcorship to this new company. The nomination has been approved, however i still did not lodge my visa application. So currently i am not in either of the companies. But our plan has changed and I was wondering, how painless/painful is it to withdraw an approved nomination and what are the consequences for both the employer and myself?

    Thank you

    Tina

    Reply
    1. Peng Cheng Post author

      Hi Tina,
      The new employer should lodge a 457 nomination application, and you need to be approved to work for the new employer before you can start work. The employer that you no longer work for just needs to contact the Department and advise that you have ceased employment. Employer can inform the Department using this email address: e457.parramatta@immi.gov.au
      PC

      Reply
  16. parminder09@live.co.uk

    Hi Peng,

    I would like to gather some information about 2 % training. I am on 457 visa and eligible to apply for 186 visa .I have all the documents which required for 186 visa accept 2% training document.
    Is it possible can I pay the training amount by myself or is it necessary to have employer bank details on the benchmark training form.
    I am struggling to get the benchmark training document, as my employer already invested AUD 10,000 on business plus training a year ago. Unfortunately, the invoice unable to describe the 2% benchmark training but the invoice shows business plus training for AUD 10, 000.
    Do you think ? the case office will accept this invoice .

    Reply
  17. Mandy

    Hi peng,
    I would like to gather some info about 186 visa nomination & renew SBS. I am completing my 2 years on 457 & going to apply 186 visa in Aug 2015 my company’s SBS ( standard business sponsership) expire in Nov.2015.
    My question does my company need to renew SBS sponsorship again as they going to nominating me again for 186 visa or it’s not necessary in my case.

    After the decision of my 186 visa application (whatever the decision positive or negitive ) is there any effect on my current 457 visa because of this expiry.
    I am confused about this.
    Thanks in advance

    Reply
    1. Peng Cheng Post author

      Hi Mandy,
      Current SBS approval is not required for a 186 visa application.
      If the visa is approved, it will just replace your 457 visa. A visa refusal can affect your current visa, depending on the reason for the refusal.
      PC

      Reply
  18. Mandy

    Hi Peng,
    In this case if I applied just nomination for 186 not the actual visa ,still the nomination refusal will effect my current 457 visa status.
    Because I have less than 2 years visa left (of my current 457) to working with same company.
    Thanks again

    Reply
  19. Tina

    Hi Peng
    I am currently on 457 visa and my 2 year work condition going to finshish in November 2015 . But my company SBS is exiring in 2nd of November before my two year work condition is that effect on my 457 visa? Coz am applying nomination and visa under 186 visa can I still do that . Or my campany need renew SBS for that . Can apply my nomination under186 visa without SBS
    Thanks

    Reply
  20. mandy

    Hi peng

    My sponsorship was started in 2011 and 2015 I am applying for 186 visa as in 2011-2012 my company forgot to do the training it should have about $1780 but company did training only for $418 if immigration asks for 2011-2012 training csn we show the internal training. Will that can work ?

    Reply
    1. Peng Cheng Post author

      Hi Mandy,
      In terms of internal training, the above post states:
      Structured internal on-the-job training. Such training needs to have clearly defined goals that are aimed at increasing the employees’ skills and experience with progression through the various stages of the training. For such internal training, the business should to evidence the following:
      The learning outcomes of the employee at each stage;
      How the progress of the employee will be monitored and assessed;
      How the program will provide additional and enhanced skills;
      The use of qualified trainers to develop the program and set assessments; and
      The number of people participating and their skill/occupation.

      PC

      Reply
  21. samir

    hi,
    i am holding 457 visa since april 2013. i have problem regarding my employer training benchmark. my employer forgot that last 2 years. so what is way to show it and i want to apply ENS 186 VISA. so please give me reply so i can tell to my employer.
    please give me reply.
    thanks

    Reply
    1. Peng Cheng Post author

      Hi Samir,
      We would need to complete an assessment before we can answer your query – please see Contact us page.
      PC

      Reply
      1. Samir

        My employer didn’t have evidence for training benchmark last 2 year so how can fill that training benchmark requirements. Please give me reply.
        Thanks

        Reply
        1. Peng Cheng Post author

          We would need to complete an assessment before we can answer your query – please see Contact us page.

          Reply
  22. Santo Sammarco

    Hi Peng,
    thanks in advance for your help,
    I’d like to sponsor a plumber but I’m struggling to define what is intended under 2% payroll, I ‘ ma a sole trader therefore I don’t pay wages or remuneration, could I use the actual profit to fulfil this requirement of the beanchmark A and calculate the 2% on that amount?
    Thanks
    Santo

    Reply
    1. Peng Cheng Post author

      Hi Santo,
      Yes you can use profit for this requirement if you are a sole trader with no employees.
      PC

      Reply
      1. Chrish

        Hi Peng

        I have a company only contractors work and I’m the only person who is getting a salary as the Director. So just wondering when considering the bench mark only my salary is taking to count? And do I need to provide the training or get the training to my self for complete 12 months?
        Just planing to sponsor my brother who is living in my mother country, is it possible to sponsor a family member?

        Thank you so much

        Chrish

        Reply
        1. Peng Cheng Post author

          Hi Chrish,
          You can use your salary as payroll if you don’t have any employees.
          I think that you would need to pay 2% of a relevant industry training fund.
          It is possible to sponsor family.
          PC

          Reply
  23. usman

    hi

    Need your Help

    My name is usman and i have one question i am on 457 visa for last two years and my company spend that amount of money on Training Bench Mark

    Profit & Loss year 1 shows staff training amount of $15,300
    Profit & Loss year 2 shows staff training amount $1,250

    But at the end Total Percentage of Payroll amount should be like that Year 1 (4,700.77) and Year 2 (5,131.08)

    And i am so confuse now the case officer will accept my Training Bench Mark because Year 1 my company pay extra money and year 2 is less and i am going to launch my 187 nomination

    thanks

    Reply
    1. Peng Cheng Post author

      Hi Usman,
      Sorry but we would need to complete an assessment before we can answer this query – please see contact us page.
      PC

      Reply
  24. Jasvirgrewal8@gmail.com

    Hi, Can you please help with the following:

    My business is an SBS and got approved last year 15th of Sept i.e. 20/09/2014. I paid 2% to TAFE to satisfy TB then. My question is as follows:

    1. When do I pay for the TB again? before the end of financial year i.e. 30/6/2015 or can do it before 20/9/2015.

    I also heard that after 1st of July, there will not be any Training Benchmark A any more only Training Benchmark B will be left? Is it going to affect my business as SBS?

    Thanks.

    Reply
    1. Peng Cheng Post author

      Hi,
      You should pay the required training before 20/9/2015 to cover the 12 months that have passed.
      I haven’t heard of such a change.
      PC

      Reply
  25. Henry Li

    Hi Peng, I have a question. I am running a company as the trustee for my family trust. I am the only staff working for it. I have paid some training expenditure in the last 12 months. But I do not receive any salary from the company. And no wages has been drawn from the company.
    In this case, how I can demonstrate that the company/ trust meets the training benchmark A/B?
    Many thanks.
    Henry

    Reply
    1. Peng Cheng Post author

      Hi Henry,
      You may be able to use declared profits instead of salary
      We would need to complete an assessment before we can answer this query – please see contact us page.
      PC

      Reply
  26. Sam

    Hi Mr Peng ,here I found some changes in the TB regulations,pls read the last paragraph and explain what does that mean as it can help lots of companies and 457 visa holders in meeting the requirements,thanks in advance….

    The training benchmarks for an established business are:

    A) Recent expenditure, by the business, to the equivalent of at least 2% of the payroll of

    the business, in payments allocated to an industry training fund that operates in the same

    industry as the business, and a commitment, by the business, to maintain expenditure in

    each fiscal year, to that level, for the term of approval as a sponsor.

    OR

    B) Recent expenditure, by the business, to the equivalent of at least 1% of the payroll of

    the business, in the provision of training to employees of the business, and

    a commitment, by the business, to maintain expenditure in each fiscal year, to that level, for the term of approval as a sponsor.

    The words “and a commitment, by the business, to maintain expenditure in each fiscal year, to that level, for the term of approval as a sponsor” will be removed from each of the benchmarks (A & B).  This will allow sponsors to have more flexibility in changing between the training benchmarks. 

    The remainder of the instrument will remain unchanged.

     
     

    Reply
    1. Peng Cheng Post author

      Hi Sam,
      Above just confirms that the employer can satisfy training benchmark A or B during the period that it is approved as a business sponsor.
      PC

      Reply
  27. San

    Hi Peng,, for 467 visa in stone mason what are the qualification and skill needed please reply me back thank you

    Reply
    1. Peng Cheng Post author

      Hi San,
      ANZSCO extract:
      BRICKLAYERS AND STONEMASONS lay bricks, pre-cut stones and other types of building blocks in mortar to construct and repair walls, partitions, arches and other structures, and cut and shape hard and soft stone blocks and masonry slabs for the construction and renovation of stone structures and monumental masonry.
      Indicative Skill Level:
      Most occupations in this unit group have a level of skill commensurate with the qualifications and experience outlined below.

      In Australia:

      AQF Certificate III including at least two years of on-the-job training, or AQF Certificate IV (ANZSCO Skill Level 3)

      In New Zealand:
      NZ Register Level 4 qualification (ANZSCO Skill Level 3)

      At least three years of relevant experience may substitute for the formal qualifications listed above. In some instances relevant experience and/or on-the-job training may be required in addition to the formal qualification.
      PC

      Reply
  28. San

    Hi Peng, thank you for the reply ,, I have one more question, what if someone work in australian company for 6 years and have skill and experience, does he still need the certificate,, related to question above , thank you for your help

    Reply
    1. Peng Cheng Post author

      ANZSCO states: At least three years of relevant experience may substitute for the formal qualifications listed above. In some instances relevant experience and/or on-the-job training may be required in addition to the formal qualification.

      The qualification and experience that you need to have also depends on the visa that you are applying for. We would need to complete an assessment before we can advise in relation to your visa options – please see contact us page.

      Reply
  29. San

    Hi Peng,, thank you for your reply,, but still confuse , can someone apply for 457 visa in stone mason without showing there 2 years experience and certificate 3 ,,at initial state and can show later after completing their certificate 3 and 2 years of experience on the pathway thank you

    Reply
    1. Peng Cheng Post author

      No I don’t think that you can do this. You need to satisfy the relevant requirements at the time of application.

      Reply
  30. San

    Hi Peng,, thank you for the reply,,last question, related to AQF certificate 4 in stone mason requirement for 457visa, so far I knew the highest level of stone mason is certificate 3 so is there any option in this case like can someone show certificate 4 in construction, and other question, two years of work experience should someone work in same sponsership company or can work in different company for two years and have experience and should it be part time work or full time work please help to solve this query ,, appreciated

    Reply
    1. Peng Cheng Post author

      We would need to review relevant documents before we can determine if these are sufficient for a 457 visa application – please see contact us page and information in relation to our consultation service.
      You can count experience from multiple employers.
      You can count both full-time and part-time experience. Work experience stated in ANZSCO is the equivalent full-time experience required.

      Reply
  31. Carl Rider

    Hi Peng,

    Regarding pathway 2 of attaining the training benchmark:

    Exactly how do DIAC calculate the monetary value that a companies internal training program amounts to?
    We employ a production supervisor and one of their duties is to provide on the job training to employees. We have semi-structured training for new staff. I know I can’t count the salary of people receiving training but can I count the supervisors salary if they are the training provider?

    Thanks in advance,
    Carl

    Reply
    1. Peng Cheng Post author

      Hi Carl,
      Exactly how do DIAC calculate the monetary value that a companies internal training program amounts to? It is up to the employer to quantify and demonstrate their training expenditure, including providing supporting documents to demonstrate compliance with this obligation.
      The employer may be able to count the salary of the employee delivering the training.
      We would need to complete an assessment before we can advise in relation to the exact documents that the employer needs to provide – please see contact us page.

      PC

      Reply
  32. payal

    i run a company . i got sponcership approved in nov 2012. i sponcered one 457 visa. i contributed 2% of payroll on 30/06/2014 for financial year 2013-14. second one i contributed 2% of payroll 30/06/2015 for financial year 2014-15. now we going to put nomination for 186 visa. do i meet training requirement or not. because we follow financial year to calculate payroll. is that valid? and we missed i think financial year 2013-14. so it will be consider or can we pay now. because on that time we dont know where to contribute.

    Reply
    1. Peng Cheng Post author

      We would need to complete an assessment before we can answer this query – please see contact us page.

      Reply
  33. Gaurav

    My name is gaurav I’m nearly finish my 2 years on 457 now I’m apply for pr under 186 visa but my employer told me he haven’t pay training for last years but can I do to solve this problem

    Reply
    1. Peng Cheng Post author

      The training benchmark requirement needs to be satisfied for a TRT stream application. Please see contact us page and information in relation to our consultation service if you need us to complete an assessment, and determine if an application is possible.

      Reply
  34. piyush

    Hi Peng,
    My employer has missed last year of training benchmark and this year he has paid 2% of only my annual salary as I am the only employee on 457 visa in the business.
    My question is, does he has to pay 2% of all the employees? Also does it includes my employers salary and his family members salary who are working in the business?
    Thanks

    Reply
    1. Peng Cheng Post author

      Hi Piyush,
      Yes all payroll expenditure is included:

      Payroll refers to the amount of money which an employer pays in wages to their employees in the 12 months prior to application lodgement. Payroll expenditure includes any wages, remuneration, salary, commission, bonuses, allowances, superannuation contributions (mandatory or otherwise) or eligible termination payments that are defined as wages in the Act relating to payroll tax in the relevant State/Territory.
      A business can assess whether this requirement is met by calculating its total expenditure on training of Australian citizens and permanent residents and its total expenditure on payroll for the last 12 months, and determining whether total expenditure of training equates to at least 1% of payroll.

      PC

      Reply
  35. Manjunath

    HI Peng

    Thanks in advance for your response

    I have question with regards to direct entry scheme , does the company needs to provide training every year since the establishment of the company to be eligible for training bench marking clause or any recent years training records will be sufficient ?

    Reply
    1. Peng Cheng Post author

      Hi Manjunath,
      The employer needs to demonstrate that it has complied with that requirement during the 12 month period that precedes the lodgement of the application.
      PC

      Reply
      1. Manjunath

        HI Peng

        Much appreciate your response

        Our office has tie up with university in Australia , we do lot of testing and training there , can this be used to substantiate the bench marking training requirement ?

        Reply
        1. Peng Cheng Post author

          Hi Manjunath,
          Yes you may be able to count this training if it benefits Australian employees.
          PC

          Reply
  36. Manjunath

    How many Australian employees should be trained or we have to just show 1% of his pay roll is meant for training ?

    Is there any DIAC approval which needs to be lodged prior to the nomination ? Or we can just nominate by filling out the application ?

    Reply
    1. Peng Cheng Post author

      The training cost can be counted if at least one Australian employee benefits from the training.
      The nomination application is the relevant application that the Department needs to approve.
      PC

      Reply
  37. jessica

    Hi I complete my 2 years in my company as a costumer service manager .My company fullfill all the requirements but the problem is that I am only one staff working on that company for this financial year due to finanancial loss of company .Is it ok to apply 186 visa if my company still willing to sponser me for further 2 years or my file may b in risk .Please let me know .thank u

    Reply
    1. Peng Cheng Post author

      Hi Jessica,
      We can’t determine if the application will be approved just based on the above information.
      Please see contact us page and information in relation to our consultation service.
      PC

      Reply
  38. Jorge

    Hi Peng,

    Hope you can assist me with the following

    For a Direct Entry application from a 457 to 186, does the company needs to apply for a second nomination again?

    A certificate III has been taken by some of the employees, according to the benchmark training, can we count on the wages spent on them if they were registered as apprenticeships in order to cover the 1% expenditure?

    Looking forward to your reply

    Thanks

    Jorge

    Reply
    1. Peng Cheng Post author

      Hi Jorge,
      Employer needs to lodge a 186 nomination application.
      See above post: Employment of apprentices, trainees or recent graduates in on-going roles. The number of these individuals needs to be proportional to the size of the business. In relation to the hiring of recent graduates, only the formal training aspects of the graduate position can be included (see below for further information).
      PC

      Reply
  39. Mel

    Hi,
    Just a question about training where a business established less than 12 months when company gets its SBS at that time paid training count as previous year or count as advance year.

    Reply
    1. Peng Cheng Post author

      Hi Mel,
      You may be able to count that towards the first year of required training after SBS approval.
      We would need to complete an assessment before we can determine if this cost can count towards the training benchmark requirement – please see contact us page and information in relation to our consultation service.
      PC

      Reply
  40. Raj Kaur

    Dear sir, thank you so much for your help. My question my 457 visa granted on August 2013, company was opened on the 27th of January 2013, my employer paid benchmark training A from march 2013 to March 2014, it should be alright, I applied for 457 visa on 4th of April 2013. Thanks

    Reply
    1. Peng Cheng Post author

      Hi Raj,
      Sorry but we would need to complete an assessment before we can determine if the employer has complied with the training requirement – please see contact us page and information in relation to our consultation service.
      PC

      Reply
  41. Mary

    Hi Mr Cheng,
    I just wanted to ask you on how to satisfy the annual training benchmark, if you don’t mind please. My 457 visa had been approved on 18/05/2013, it’s almost closed to the end of financial year 30/06/13. My 1st year would’ve then been from 18/05/13 to 17/05/14, company sent a co-employee (Aus citizen) to a training on 20-21/06/13 but it was pre-paid on the company bank statement on 02/05/13. Would this training expense apply to my 1st year (date above)? My 2nd year was from 18/05/14 to 17/05/15, training was prepaid again (as training needs to be booked and paid for in advance) on the bank statement on 18/05/14, training dates were 16-17/06/14. Would this apply for my 2nd year training compliance? I am really confused as to which period to follow, would it be the annual visa due date OR the financial year since calculation of 1% of payroll for training is based on the annual company PAYG summary statement? E.g. $150,000 = $1,500
    I appreciate an advice please.
    Thank you

    Reply
    1. Peng Cheng Post author

      Hi Mary,
      Sorry but we would need to complete an assessment before we can answer these queries in relation to training – please see contact us page and information in relation to our consultation service.
      PC

      Reply
  42. Paul Kim

    Dear Peng,

    I have couple of enquiries regarding Training Benchmark B- Employee Training
    • One of the training course (e.g. Tax institute) we want to attend, they require us to join the membership before attending the course.
    Without joining the annual membership, they are not allowed to attend the course. In other word all of their courses are exclusively for members only.
    My question is that can we include this membership fee as 1% training course requirement?
    • On the other hand, for CPA Australia, if we join the membership, they allow to discount training course fee to person who has the membership.
    If we joint the membership, we think we have more benefit financially. And we think by saving the course fee by joining membership, our employees have more chance to take other courses they want to attend.
    In this case, can we include this membership fee as 1% training course requirement?

    I look forward for your reply

    Thanks

    Paul Kim

    Reply
    1. Peng Cheng Post author

      Hi Paul,
      Sorry but we would need to complete an assessment before we can answer such queries – please see contact us page and information in relation to our consultation service.
      PC

      Reply
  43. Tsvetelina Vasileva

    Hello,
    I am an Economist and would like to set up a company so that to selfsponsor myself. Does the company need to be registered with GST if my sells are less than $75 000?

    Thank you!

    Reply
  44. rajib

    hi ping

    my employer failed to meet first year training benchmark but
    second year he meet the altogether first and second is that work or they need to pay first year.

    ragards
    raz

    Reply
    1. Peng Cheng Post author

      Hi Raz,
      Sorry but that doesn’t really satisfy the training benchmark requirement because this needs to be paid during each year that the employer has 457 visa holders working for it.
      PC

      Reply
  45. Raji

    Hi Peng Cheng
    Please if you help that will be grate.Under 186 visa we submit two invoices for training benchmark.however my case officer was asked me….something like this (however no details of the training conducted s can be provided as
    Previously you have provided two invoices
    was provided. Please refer above for more details on what evidence
    acceptable training evidences.
    Now this training was done by proper way she was came our place but unfortunately she closed here business we trying to contact to here but no response……how we can provide other evidences and what types of evidence because nothing wrong from our side…..
    If you help and give suggestions that will be grt……I like you website which so helpful for us

    Thank you

    Reply
    1. Peng Cheng Post author

      Hi Raji,
      Perhaps you can submit bank statements or cheque receipts to show that the employer has paid the relevant training cost.
      PC

      Reply
      1. Raji

        Hi Peng

        Thank you so much for your help and my employer was paid everything. He has all evidence but sometimes his feeling stress for more documents togethering and it is times consuming…sometime I am afraid to asking again and again.but anyway thank you so much again and I appreciate your time.

        Reply
  46. Simi

    Hi Peng,

    i have a sponsor (457) which is a bakery and has been operating for more than 12 months. The business only employs one casual Australian employee apart from the owner

    For SBS can you please advise, which benchmark we may need to go with . The company has not done any training before.

    If benchmark B , so we need to make payment for the training before the lodgement of SBS application – Please confirm. Would it b ok since no trainings have been conducted by the business so far.

    Reply
    1. Peng Cheng Post author

      Hi Simi,
      Employer can choose either pathway A or B for training.
      Training cost can actually be paid after the lodgement of the business sponsorship application, but this needs to be paid before business sponsorship approval can be granted.
      PC

      Reply
  47. Nai

    Hi Peng,

    My name is Nai. I’m holding 457 visa for 2 years already. I have a question about the training requirement as the restaurant I’m working with is operating as a family trust. The owner has 1 restaurant and 1 company. So with the 1% of the payroll for 457 requirement, would it count only the restaurant I work for or it count for the whole trust wages paid. The thing is the owner has only paid for the 1% of the restaurant wages. Kindly help me clarify please.

    Many thanks
    Nai

    Reply
    1. Peng Cheng Post author

      Hi Nai,
      I think that only the payroll of the restaurant counts, but I would need to complete an assessment before I can determine the training requirements – please see Contact Us above information in relation to our consultation service.
      PC

      Reply
  48. Harry

    Hi
    Peng
    I have completed 2 year on 457 visa and i am going to apply 186 visa but we just checked my employer did not pay right 2% training Banchmark he paid on time but by mistake he paid 2000 less each year now we calculated and he paid remaining amount for both years so is that OK to apply for my 186 visa immigration we approve my visa or not.

    Regards
    Harry

    Reply
    1. Peng Cheng Post author

      Hi Harry,
      Please see Contact Us above information in relation to our consultation service if you need advice in relation to the training requirement.
      PC

      Reply
  49. Stacey

    Hi Peng
    I have a question about a business in Australia, if is has been operating here for 5 years but has never employed any au citizens or Pr can they still be accepted as sponsors if they are happy to meet benchmark A?
    Thank you for your answer!

    Reply
  50. Aman

    Hi peng
    My husband is on 457 since sept 2014 and his company got sponsorship approval in april 2014 and company paid 1 percent on training in november 2013 i.e prior making SBS application so my question is when is the next due training? Should we consider paid training as year 2014-2015 after got SBS approval or 2013-2014 when they paid for training? Please reply
    Thanks

    Reply
    1. Peng Cheng Post author

      Hi Aman,
      Extract from DIBP’s website: https://www.border.gov.au/Trav/Visa-1/457-
      The obligation begins on the day you are approved as a sponsor. You must meet this obligation in each 12 month period within which you employ a sponsored visa holder (including if the sponsored visa holder is not employed by you for the full twelve months). Where your approval as a standard business sponsor is varied, you must meet the training requirement if you employ one or more primary sponsored persons.
      PC

      Reply
  51. Gwen

    HI Peng,
    I am a self employed 457 holder, I employed myself as a restaurant manager. I have a Australia chef, Italian cook and a 15 years old certificate III in hospitality trainee. I have a training contract with her and lodged with gov. She worked for me for 3 months. Technically, how do i assume her salary can be reach 1% of training benchmark?
    Should I
    her salary(she only works once a week, therefore no super and tax should be paid )
    ________________________________________________________________________________________ X 100%?
    my salary & super + all my staff salary & super + her salary

    what else should include in the formula?

    Reply
    1. Peng Cheng Post author

      Hi Gwen,
      See definition in above post:

      Definition – Payroll Expenditure
      Payroll refers to the amount of money which an employer pays in wages to their employees in the 12 months prior to application lodgement. Payroll expenditure includes any wages, remuneration, salary, commission, bonuses, allowances, superannuation contributions (mandatory or otherwise) or eligible termination payments that are defined as wages in the Act relating to payroll tax in the relevant State/Territory.
      A business can assess whether this requirement is met by calculating its total expenditure on training of Australian citizens and permanent residents and its total expenditure on payroll for the last 12 months, and determining whether total expenditure of training equates to at least 1% of payroll.

      PC

      Reply
  52. stephen

    Hi,

    I have been working for the same company as an engineering surveyor for 4 years on a 457 visa and I am now looking to gain PR via the Temporary Residence Transition Stream.

    My employer cannot provide evidence of the 1% training benchmark as stated in pathways one and two. However I have been working either with the boss or a survey manager every day for the past 4 years where multiple hours every week are spent training. Does this type of training fall under the “on-the-job or in-house training” category as stated as one of the exemptions? If so, do I need to provide a log of training schedules etc for the past 12 months? Or is it necessary to show a cost of some description to the employer? Any help on this is much appreciated

    Reply
    1. Peng Cheng Post author

      Hi Stephen,
      Sorry but I don’t think that such informal training can count, but I would need to complete an assessment before I can advise on this matter.
      Please see Contact Us page and in relation to our Consultation Service – feel free to contact us if you need advice in relation to this requirement.
      PC

      Reply
  53. vir

    Hi
    My employer’s SBS is expired in nov 2015, and i want to apply 186 visa in june 2016, so should we renew the SBS?
    and other quetion is someone told me if we paid three years TB, so we donot need to pay 4th year’s TB.is it right?

    Thanks,
    vir

    Reply
    1. Peng Cheng Post author

      Hi Vir,
      A current SBS is not required to sponsor a 186 visa applicant.
      Extract from Department’s website:

      The obligation begins on the day you are approved as a sponsor. You must meet this obligation in each 12 month period within which you employ a sponsored visa holder (including if the sponsored visa holder is not employed by you for the full twelve months). Where your approval as a standard business sponsor is varied, you must meet the training requirement if you employ one or more primary sponsored persons.

      PC

      Reply
  54. Ari

    Hi PC

    Need your help please…
    Is that possible if a company want to sponsor me and that company just employee sub contractor?
    And lets say, 3 of employee including director are on fulltime salary, 7 on PAYG, 10 as subcontractor (plus super). Then how to count the payroll to meet that 1% or 2% training benchmark? Are there only 3 fulltime salary x 1% or 2% would be counted? Or total of 20 employees’s salary times 1% or 2%?

    Thanks heaps
    Ari

    Reply
    1. Peng Cheng Post author

      Hi Ari,
      The employer doesn’t need to count the cost of contractors for payroll calculation.
      Sorry but I can’t advise in relation to whether the relevant requirements are satisfied just based on the above information.
      Please see Contact Us page and in relation to our Consultation Service – feel free to contact us if you need advice in relation to your visa options.
      PC

      Reply
      1. Kalina

        HI Peng,
        We are sponsoring an employee and we are about to calculate the amounts we need to pay in order to meet the Training Benchmark. Our business has employees and subcontractors who provide some materials as well as labour, do we need to include the full amount of payments to subcontractors or can we exclude the materials component if it can be determined?

        Reply
  55. Ammar

    Hi sir,
    when we need to pay training benchmark, do we need to add total amount of superannuation that paid by employer or just the wages we need to add

    Reply
  56. dan

    Hi there

    I have missed the payment for the training for the previous financial year. Can i possibly get the trainer to back date it and say that it was just oweing? Also who qualifies as a trainer? I know it has to be in the same industry but do they have to be certified? Or can they just simply issue me an invoice that they provided training? Thanks so much

    Dan

    Reply
    1. Peng Cheng Post author

      Hi Dan,
      Sorry but I will need to refer to you our Consultation Service if you need advice in relation to satisfying the training requirement.
      Please see Contact Us page and information in relation to our Consultation Service.
      PC

      Reply
  57. Kevin

    Does the 2% training need to be paid within each 12 month period for the SBS, or the Fiscal year? I thought it was the first.

    Regards,

    Kevin

    Reply
    1. Peng Cheng Post author

      Extract from Department’s website: https://www.border.gov.au/Trav/Visa-1/457-
      The obligation begins on the day you are approved as a sponsor. You must meet this obligation in each 12 month period within which you employ a sponsored visa holder (including if the sponsored visa holder is not employed by you for the full twelve months). Where your approval as a standard business sponsor is varied, you must meet the training requirement if you employ one or more primary sponsored persons.
      The obligation ends either:
      three years after you are approved as a sponsor
      if you are an accredited sponsor, six years after you are approved as a sponsor.
      PC

      Reply
  58. Davinder

    Hi Peng
    My 457 visa granted November 2014 , my employer have forgate to pay 2 percent of benchmark training. Can he fix it now.Does it Start from visa granted date or sponsorship approved . Because my sponsorship approved on May 2013 .

    Reply
    1. Peng Cheng Post author

      Hi Davinder,
      Sorry but I can’t provide advice just based on your comment information.
      Please see Contact Us page and in relation to our Consultation Service – feel free to contact us if you need advice in relation to your visa options.
      PC

      Reply
  59. Sen

    Hi
    I’m wondering if the 1% includes payment for subcontractors as well or only employees?
    And is that correct that the training only counts for Aus citizens and permanent residents?

    Thanks Sen

    Reply
    1. Peng Cheng Post author

      Hi Sen,
      See above post – the training needs to benefit Australian citizen or permanent resident employees of the business. Training for contractors isn’t included.
      PC

      Reply
  60. Ross

    Hi Peng, I am on a 457 Visa and looking to apply for PR. My employer has not met the training benchmark A and has been told to pay $9000 approx. as he hasn’t met that criteria. Does he have to pay this entire amount himself or can we split the cost amongst two of us. There are no other employees apart from him (owner) and myself. Thanks

    Reply
    1. Peng Cheng Post author

      Hi Ross,
      The employer needs to pay for the cost of the training – 457 visa holder shouldn’t be paying for this.
      PC

      Reply
  61. Kate

    Hi Peng. I am happy that I found out this website today. I am currently under 457 visa for 2yrs, I am eligible to apply for TRT. My company spent right amount of expenses for training benchmark consistantly and its keeps going. However problem is that they separated ABN to 3 different one and all apprenticeship/my wages are paid with not the same ABN what I am sponsored with. Yet those companys (ABN)are actually same business which are considered as sister or parents companies. And employer is able to prove that.
    In this case, is that training benchmark expenditure possible to be accepted by DIAC?
    Many thanks for your time.

    Reply
    1. Peng Cheng Post author

      Hi Kate,
      Sorry but I can’t provide advice just based on your comment information.
      Please see Contact Us page and in relation to our Consultation Service – feel free to contact us if you need advice in relation to your visa options.
      PC

      Reply
  62. Jen Stallard

    Hi,

    Thank you for the helpful article.
    I am on a 457 & applying for PR soon. I have been on my 457 visa since August 2012. Can you please clarify how many years training info I have to give now with my PR application?

    Thanks

    Reply
    1. Peng Cheng Post author

      Hi Jen,
      The employer needs to demonstrate that it has complied with training requirement during the period that it has been approved as a standard business sponsor.
      PC

      Reply
  63. Pam

    Hi Peng,
    Your comments r very helpful. My company sbs expired last year may 2015. I am applying 186 visa June 2016. Do company require benchmarking for 2015-2016 financial year or not. Thanks in advance.

    Reply
    1. Peng Cheng Post author

      Hi Pam,
      Yes the employer needs to comply with the training requirement during its approved period as a business sponsor, and also during all periods that it has 457 visa holders working for it.
      PC

      Reply
  64. vaishu

    Hi
    My employers SBS has been expired in nov-2015, and i am going to apply ENS in july 2016, and during 3 yrs ,sponsership , they paid training benchmark regularly, so, employer has to pay the training benchmark after nov 2015.?

    Reply
    1. Peng Cheng Post author

      Hi Vaishu,
      Extract from Department’s website:
      You must have met the subclass 457 visa training requirements in each year you have been a standard business sponsor.
      PC

      Reply
  65. susana

    Dear Peng,

    My proposed sponsor PL: Commission is about 200000, wages is 100000, super is 10000, in a real estate company, training fee is 1%of total or only 1% of wages+spuer? appreciate for you reply

    Reply
    1. Peng Cheng Post author

      Hi Susana,
      Please see above post:
      Definition – Payroll Expenditure
      Payroll refers to the amount of money which an employer pays in wages to their employees in the 12 months prior to application lodgement. Payroll expenditure includes any wages, remuneration, salary, commission, bonuses, allowances, superannuation contributions (mandatory or otherwise) or eligible termination payments that are defined as wages in the Act relating to payroll tax in the relevant State/Territory.
      A business can assess whether this requirement is met by calculating its total expenditure on training of Australian citizens and permanent residents and its total expenditure on payroll for the last 12 months, and determining whether total expenditure of training equates to at least 1% of payroll.
      PC

      Reply
  66. Guin

    Hi Peng,
    This article is very helpful.
    Are you able to tell me about the recent graduates criteria.
    We employ graduates casually for up to two years, they work in assisting roles and are mentored by our senior staff in their graduate field.
    Is this classed as an ongoing role and can this be counted towards the training benchmark?
    If so what documents do i need to provide to show this?

    Reply
    1. Peng Cheng Post author

      Hi Guin,
      Sorry but we will need to refer you to our consultation service for such advice – please see Contact Us page.
      PC

      Reply
  67. Jonathan

    Hi Peng Cheng,

    Thank you very much for your helpful article.

    Can I please ask 2 questions:

    Question 1: my employer has just had Standard Business Sponsorship (SBS) in July, 2016. I have held a 457 visa for 2 years and I am going to apply for visa 186 in October. Does my employer need to apply/renew SBS to sponsor me a nomination?

    Question 2: If my employer had to apply/renew a SBS for me, how long it would take normally (processing time) and can I apply my visa 186 altogether with the employer nomination? Or I have to wait when the employer has got new SBS.

    I am looking forward to hearing from you. Appreciate your time and work!

    Kind regards,
    Jonathan

    Reply
    1. Peng Cheng Post author

      Hi Jonathan,
      No the SBS doesn’t have to be valid when you proceed with your 186 nomination and visa applications.
      Department’s processing time is around 6-8 months.
      PC

      Reply
  68. Ari

    Hi Peng Cheng

    Thanks for this blog.

    I wonder how could I prove my income if I am working with ABN?
    And how about the previous employers that paid me on ABN but I never received any pay slip?
    Is immigration would check the bank statement too?

    Regards
    Ari

    Reply
    1. Peng Cheng Post author

      Hi Ari,
      PAYG summary or other tax records can also be used to demonstrate your work experience.
      Generally speaking, employer sponsored visa applicants don’t need to provide their personal bank statements.
      PC

      Reply

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