Overview

The Migration (IMMI 18/017: Specification of Training Requirements for Regulation 2.87B) Instrument 2018 was enacted to provide specific training requirements for standard business sponsors under the Migration Regulations 1994. This instrument was introduced to address gaps in the existing framework for the employer-sponsored skilled visa programs, particularly the transition from the Subclass 457 (Temporary Work (Skilled)) visa to the Subclass 482 (Temporary Skill Shortage) visa. The reforms aim to ensure that the employment of workers from outside Australia is not seen as an alternative to training Australian workers, thereby promoting the development of local skills and reducing the burden of documentation on sponsors. The instrument was made under the Migration Regulations 1994 and is subject to disallowance by Parliament. It repeals the previous instrument, IMMI 17/045, and applies to standard business sponsors from 18 March 2018. The policy objective is to streamline the sponsorship process while maintaining the integrity of the visa program and supporting the right to work. The instrument specifies two training benchmarks: Training Benchmark A, which requires businesses to dedicate at least 2% of their total payroll to a training fund operating in a related industry, and Training Benchmark B, which requires at least 1% of the total payroll to be spent on relevant employee training. These benchmarks ensure that sponsors continue to meet the necessary training obligations without the need for extensive documentation at the application stage. Instead, compliance with these benchmarks is assessed during the sponsor monitoring process. This approach reduces administrative burdens while maintaining the focus on training Australian workers and preventing the misuse of visa programs.

Scope and Application

The Migration (IMMI 18/017: Specification of Training Requirements for Regulation 2.87B) Instrument 2018 applies to standard business sponsors who operate a business in Australia and sponsor workers under the Temporary Skill Shortage (Subclass 482) visa or the Temporary (Work (Skilled)) (Subclass 457) visa. The instrument specifies the training requirements that these sponsors must satisfy, which are outlined in two training benchmarks. Training Benchmark A requires businesses to have recent expenditure of at least 2% of their total payroll dedicated to a training fund that operates in a related industry, while Training Benchmark B requires businesses to have recent expenditure of at least 1% of their total payroll dedicated to relevant employee training. The instrument came into effect on 18 March 2018 and repealed the previous instrument, IMMI 17/045, in accordance with subsection 33(3) of the Acts Interpretation Act 1901. The instrument does not apply to standard business sponsor applications, but the training benchmark obligations will continue to apply to standard business sponsors and work agreement sponsors where these provisions are specified. The instrument's purpose is to address changes to the Regulations by the Migration Legislation Amendment (Temporary Skill Shortage Visa and Complementary Reforms) Regulations 2018 and to ensure that the employment of workers from outside Australia is not seen as an alternative to training Australian workers. The instrument is compatible with human rights, as it does not limit any of Australia’s human rights obligations and promotes the training of Australian citizens and permanent residents in support of the right to work in Article 6 of the International Covenant on Economic Social and Cultural Rights. The instrument is made under Part 2A of the Regulations and is subject to disallowance. The instrument is part of a broader package of reforms for the employer sponsored skilled visa programs, announced by the Government on 18 April 2017, and was developed in consultation with external stakeholders and informed by earlier reviews. A Regulation Impact Statement has been prepared in accordance with advice from the Office of Best Practice Regulation.

Key Provisions

The Migration (IMMI 18/017: Specification of Training Requirements for Regulation 2.87B) Instrument 2018, which is made under subregulations 2.87B(2) and 2.87B(3) of the Migration Regulations 1994, specifies the training requirements that standard business sponsors must meet. This instrument, which came into effect on 18 March 2018, sets out two training benchmarks (Training Benchmark A and Training Benchmark B) to ensure that the employment of workers from outside Australia is not seen as an alternative to training Australian workers. Training Benchmark A requires businesses to have recent expenditure of at least 2% of their total payroll dedicated to a training fund that operates in a related industry, while Training Benchmark B requires businesses to have recent expenditure of at least 1% of their total payroll dedicated to relevant employee training. These requirements only apply to standard business sponsors on and after 18 March 2018. Standard business sponsors are required to meet the training benchmarks outlined in the instrument. They must ensure that they have recent expenditure of at least 2% of their total payroll dedicated to a training fund that operates in a related industry to satisfy Training Benchmark A, and at least 1% of their total payroll dedicated to relevant employee training to satisfy Training Benchmark B. The acceptable expenditure to satisfy Training Benchmark A and the applicable and inapplicable expenditure to satisfy Training Benchmark B are specified in the instrument. Sponsors must demonstrate compliance with these training benchmarks if requested during the sponsor monitoring process. The instrument does not outline any specific offences, penalties, or civil or criminal consequences for breach. However, it is important to note that failure to comply with the training requirements may result in the sponsor being non-compliant with the Migration Regulations 1994, which could lead to potential consequences such as the revocation of their sponsorship rights or other administrative actions taken by the Department of Home Affairs. The acceptable expenditure to satisfy Training Benchmark A and the applicable and inapplicable expenditure to satisfy Training Benchmark B are specified in the instrument. This instrument is compatible with human rights as it does not limit any of Australia’s human rights obligations and promotes the training of Australian citizens and permanent residents in support of the right to work in Article 6 of the International Covenant on Economic, Social and Cultural Rights. The instrument repeals IMMI 17/045 and applies to standard business sponsors who lawfully operate a business in Australia at the time they were approved as a standard business sponsor, or at the time their application to vary their standard business sponsorship was approved. It will apply to a sponsor who sponsors workers under the Temporary Skill Shortage (Subclass 482) visa, and the Temporary (Work (Skilled)) (Subclass 457) visa.