Training Benchmarks for Approval as a 457 Business Sponsor
Businesses which have been operating for 12 months or more must show that they are able to meet a training benchmark to be approved as a business sponsor.
The benchmark has been created by the Department of Employment and Workplace Relations and is intended to be an objective measure of the employer's committment to training Australians in the business.
Startup companies which have been operating for less than 12 months must show that they have an auditable plan to meet the benchmarks.
Businesses have two options in meeting the training benchmark:
- Payment to an industry training fund of at least 2% of payroll; or
- Expenditure of at least 1% of payroll on training of employees.
The business must show recent expenditure at the required level, and also commit to maintaining this level of funding in each fiscal year going forward.
For the second option, costs which would be considered will include:
- Paying for or funding a scholarship for formal study by employees at TAFE or University
- Employment of apprentices, trainees or recent graduates in the business
- Employment of a training officer
- Payment to external providers for training
On the job training can only be included if it is structured with a clearly defined timeframe and skill progression.
Expenditure will not be counted towards the benchmark if the training is:
- Informal on the job training; or
- Undertaken only by temporary residents; or
- Undertaken by the principals of the business or their family members; or
- At a very low skill level or confined to only one or a few aspects of the business.
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