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The permanent, employer-sponsored Regional Sponsored Migration Scheme (RSMS) subclass 187 visa has generated lots of attention recently for a few reasons.

The Morrison Government has released a plan to reduce congestion in major cities, encourage more skilled migrants to enter and reside in regional areas. On 20 March 2019, Prime Minister Scott Morrison announced that for the next four years immigration will be capped 160,000 migrants per year. While the total amount of immigration will be capped, the number of skilled migrants entering Australia will be raised using regional visas and skilled visa streams.

If you are looking to apply for a TSS subclass 482 visa, subclass 457 visa, ENS subclass 186 Visa or  subclass RSMS 187 visa subclass and you have all of your documents ready to lodge the application, you can avoid the Skilling Australians Fund by lodging it on or before 11 August 2018.

If you still have advertising to complete or have too much work left to do to complete the nomination application before 12 August 2018, it is likely that you will need to pay a contribution to the Skilling Australians Fund Levy.

The Skilling Australians Fund will affect any applications lodged on or after 12 August 2018.

This is going to cause significant additional charges to employers on top of the current application charges.

As we have previously written about, the Skilling Australians Fund is a levy which will be imposed on applications to nominate a foreign worker under a subclass 482, subclass 457, subclass 186 or subclass 187 visa.

How Much Does The New Skilling Australians Fund Levy Cost?

The size of your businesses contribution to the levy will vary based on the particular application, as well as the size of the business.

If you are a small to medium business with turnover of less than $10,000,000, your contribution will be less than for a large business with yearly turnover of $10,000,000 or more.

What Exceptions Are There?

The following kinds of applications are exempted from paying the relevant contribution charge:

• Subclass 482 visas lodged under the Labour Agreement stream
• Subclass 186 visas lodged under the Labour Agreement stream
• If the nomination is for the occupation of Minister of Religion (ANZSCO: 272211) or Religious Assistant (ANZSCO: 451816)

For any of the above applications, the contribution amount is cut down to $0.

Meeting The Training Benchmarks

Any applications lodged before 12 August 2018 will still need to continue to meet their training obligations under the current scheme. If you are currently sponsoring an employee or are planning to lodge a nomination before 12 August 2018, you will need to continue to keep clear records and spend:

• Spend 1% of payroll on the training of your Australian employees, or
• Contribute 2% to a industry training fund

For nominations on or after 12 August 2018, you will no longer need to meet the training benchmarks. It is important to be careful, however, if you have a blend of pre- and post-SAF nominees. If you have an employee who is looking to use the Temporary Residence Transition stream of 186/187 for a permanent application after holding a 457/482 which was nominated pre-SAF, you will need to show at the time of application that the training benchmarks have been met for all the sponsorship years.

There may be some cases of employers with a large payroll and low utilisation of the employer-sponsored migration scheme where the replacement of the Training Benchmarks with the Skilling Australians Fund Levy will bring an advantage.

Can The Nominee / Visa Applicant Pay The Skilling Australians Fund Levy Contribution?

No. Even if they want to, the SAF Levy Contribution has been added to the list of costs which cannot be recovered or transferred to anyone other than the nominating entity (the sponsoring business or organization).

Watch Out!

While a lot of the focus is on the Temporary Skills Shortage subclass 482 visa, if you are nominating an employee who already holds a subclass 457 visa and is moving to you from their previous employer, you will still need to contribute to the Skilling Australians Fund Levy.

What If?

There is an interesting provision in the Instrument which has provided the date for the Skilling Australians Fund to be brought in. It says that if section 3 of the Migration (Skilling Australians Fund) Charges Act 2018 does not commence (as it is always possible that things might change), then these regulations will not commence either.

If you are considering nominating an employee, it is important that you keep a very close eye on news about the Fund as the 12 August 2018 draws nearer.

What Will This Mean Overall?

With the increasing financial friction to nominating an employee for an employer-sponsored visa, it is likely that we will continue to see the number of applications under this stream decrease, even faster than we have previously noted.

Comments From Chris Johnston

I expect that the introduction of the Skilling Australians Fund on 12 August 2018 is likely to reduce even further the already restricted number of applications we are seeing for employer-sponsored visas. A lot of applications will probably not go ahead because of the Skilling Australians Fund.

While the Department have projected high expected revenue from this levy, the decrease in the number of applications is likely to strongly affect this. These estimates may be out by up to 50%-75% due to the effect of dicincentivisation not being accounted for.

Do you need help with an Australian visa application?

Sources:

• Migration (Skilling Australians Fund) Charges Regulations 2018

Tougher vetting imposed by Home Affairs Minister Peter Dutton has led migration to plummet to its lowest since 2007. As reported by the Department of Home Affairs, actual intake fell from 183,608 in 2016-2017 to a staggering 162,417 for the 2017-2018 financial year. This is attributed to a 46 per cent increase in visas being refused and an additional 17 per cent rise in application withdrawals due to the greater scrutiny, according to The Australian. Even though the government is not required to fulfil the current migration cap of 190,000, nearly every previous year they have.

The visa charges for many visas will be raised by approximately 15% from 1 September 2013.

Some examples of the charges are:

For an RSMS subclass 187 this means the base application charge will go up from $3060 to $3520.

Dependent spouse/partner $1530 to $1760.

Dependent child from $765 to $880

For a Contributory Parent (Migrant) per applicant the 2^nd Instalment will go up from $42,220 to $48,550.

Here is a link for the Instrument listing all the changes:

http://www.comlaw.gov.au/Details/F2013L01534/Explanatory%20Statement/Text

Need Help?

If you require further information regarding Australian Visa application charges or your Australian visa options you contact our offices on (08) 7225 5091 or +61 8 7225 5091  

This information isaccurate on the 27 August 2013.  DIAC will change visa charges regularly and you will need to check the current charges prior to lodging an application. 

The RSMS Direct entry subclass 187 is an Australian permanent residency work visa.  The first stage of the RSMS Direct entry process requires applying to the RCB for advice on the suitability of the employer and position.

Immigration SA, the state body that is the Regional Certifying Body (RCB) for RSMS in SA, has announced the following:

“Changes to the way employers demonstrate how they have tested the labour market:

• Removal of the peer review process (implemented on 21 June, 2013).

• Reduction in the number of  documents applicants are required to upload. Some documents have been replaced with a series of online questions.

• In some instances, the employer will be able to provide the RCB with a statutory declaration to support their application.”

There are also new Exemptions from labour market testing for the following:

• Employers who are approved 457 sponsors, who can demonstrate that the skilled migrant they are nominating has been working for them in the nominated occupation for at least 12 months.

• Occupations listed on a new Regional Certifying Body Occupation List. This list includes occupations such as:

• Construction Project Manager 133111
• Engineering Manager 133211
• Surveyor 232212
• Cartographer 232213
• Other Spatial Specialist 232214
• Chemical Engineer 233111
• Civil Engineer 233211
• Quantity Surveyor 233213
• Structural Engineer 233214
• Electrical Engineer 233311
• Mining Engineer (excluding
• Petroleum) 233611
• Petroleum Engineer 233612
• Geologist 234411
• University Lecturer 242111
• University Tutor 242112
• Construction Estimator 312114
• Metal Machinist (First Class) 323214
• Panelbeater 324111
• Roof Tiler 333311
• Electronic Equipment Trades
• Worker 342313
• Plus a large number of specialist medical positions.

There is a New Employer Document List:

• The new employer document list is much shorter.  Here is a link:

https://www.migration.sa.gov.au/sites/default/files/files/RSMS_Factsheet_for_SAEmployers_0.pdf

For the full list Regional Certifying Body Occupation List.:

https://www.migration.sa.gov.au/sites/default/files/files/RegionalCertifyingBody_OccupationList.pdf

Source: Immigration SA

http://us5.campaign-archive1.com/?u=a69011c047c7d5d323942b5d4&id=ec157d95cf&e=1e56c72cf8

This information isaccurate on the 10 August 2013.  Immigration SA will change requirements in an ongoing manner and all current requirements must be established prior to lodging an application. 

Need Help?

At Work Visa Lawyers we are experience in assisting employer and applicants with the RSMS process.

If you require further information regarding a RSMS application or your Australian visa options you contact our offices on (08) 7225 5091 or +61 8 7225 5091  

Immigration SA is the RCB that provides advice regarding the first stage of the RSMS Direct Entry subclass 187 visa process.

From the 1 July 2012 up until late June 2013 the Labour Market Testing requirements for RSMS visa applications caused many employers to get very frustrated and some to choose not to be involved in the RSMS process at all.

Immigration SA has taken on some feedback and the process has been improved and streamlined.

Immigration SA has released a new document checklist which has reduced the advertising requirements. 

Concessions for some 457 visa holders

If the position for the RSMS is for a person who has been working on a 457 in that organisation for 12 months or more, then LMT is not required.  You will have to answer some questions. 

LMT documents requirements are lower

At a practical level, having recently done an online application, there is now no need to attach evidence of the Labour Marketing Test.  A detailed description from the employer of the advertising process is still required.

There in now no need for:

-         - No need for advertising to include the exact salary of the position.

-          - No need for Peer review evidence from Recruitment Agent, Union or Industry Association.

Processing times with Immigration SA are now shorter

Processing times had been up to three months at one stage.

Processing times for RSMS Immigration SA RCB advice are currently quoted as 24 days. 

Source: Immigration SA website: https://www.migration.sa.gov.au/node/20

Need Help?

If you require further information regarding a RSMS application or your Australian visa options you contact our offices on (08) 7225 5091 or +61 8 7225 5091  

This information isaccurate on the 7 August 2013.  Immigration SA will change requirements in an ongoing manner and all current requirements must be established prior to lodging an application.