Employers - Remember to maintain your 457 Training Benchmarks

Employers - Remember to maintain your 457 Training Benchmarks

EMPLOYERS - Remember to maintain your 457 Training Benchmarks

If you have employees on a 457 visa, you may be familiar with the term "Training Benchmarks". As a 457 Standard Business Sponsor (SBS), the employer has an obligation to maintain the training benchmarks for each anniversary year of the business sponsorship. There are 2 ways to meet this obligation:

1.       Expenditure by the business equivalent to 1% of the payroll of the business on training of local Australian staff; or

2.       Expenditure of 2% of the payroll to an industry training fund.

See attached for a short version list of the training benchmark requirements. For a more detailed analysis of what can be included in training, you are more than welcome to contact us.



Previously, while the employer made this commitment, the Dept of Immigration (DIBP), did not excessively monitor. However, now, while it's still not monitored, an employer can come unstuck when they go to re-apply for a new SBS, or when they go to nominate employees on the permanent Employer Nomination Scheme (ENS) or Regional Skilled Migration Scheme (RSMS) visas. For each of these processes, evidence is required for the employer to demonstrate they met the training obligations.

Not sure if you met the obligations?
As an employer is you believe you have not met the benchmarks there maybe still options to satisfy the requirement. For example, we have found many cases where the employer actually did meet the requirement, but the information was not presented correctly, or some training they thought was excluded, could actually be included. Or, it may also be possible to meet the benchmark cumulatively over the life of the previous SBS, if not met for each year. Certain portion of training to principals of the business may be countable. If categorically, the employer has not met the training benchmark for the previous SBS, there is still hope. Ask us how.

Training Benchmark Template:
As mentioned above, very often employers have met the training benchmark, but have not collated the information and presented correctly to the Department. Konnecting, have developed a simple template to assist in recording training. Download, the Konnecting Excel Training Template here. 

Contact Konnecting for more infomation, or if yuo haev any questions. 

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