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 commitment 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 for each 12 months period following approval of the sponsorship.

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 for formal courses of study or training provided by an RTO which counts towards a formal qualification
  • Attending conferences for CPD purposes
  • eLearning or training software

Expenditure will not be counted towards the benchmark if the training is:

  • On-the-job or induction training; or
  • Undertaken by the principals of the business or their family members; or
  • Membership fees, books, journals or magazine subscriptions
  • Not relevant to the business' industry.

Please call our Corporate Hotline on +61 2 9230 0488 to ask how Acacia can assist you with sponsoring employees.

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