Training Benchmark (simple & quick question!)

[AndrewMcD]

Hi All,

 

Bit of a time sensitive question as we need application forms signing by a CEO who leaves thier job at lunchtime today!

 

My wifes company are happy to sponsor her on a 457 (she already works there as I have a 457). In each of the last two years they have spent more than 1% on training and on average over the last three years the spend has been above 1%. However three years ago it was below that.

 

Will they still meet the training benchmark as a sponsoring organisation?

 

Thanks!

[Mark Northam]

Hi AndrewMcD -

 

For SBS sponsors that are not start-ups, the requirement is to show "recent expenditure" for training Australian citizens or permanent residents of either 1% of gross wages on qualified training (Benchmark B), or 2% of gross wages on payment to a qualified training organisation (Benchmark A). They may also ask for training evidence for each of the completed 12-month periods of your existing SBS sponsorship. However the key in all of this is "qualified" - no way to advise whether they will meet the training obligation without a careful review of what training was undertaken, including goals/objectives/results of training, seeing who was trained, etc.

 

There are many policy issues in this area and there's really no substitute for a careful review of the proposed training expenditures to identify any potential issues. There is some flexibility in DIBP policy re: spending more in one year for training while spending less in another year, but those are evaluated on a case-by-case basis and if there is any deficiency in training obligations, it should be explained and accompanied by relevant evidence of why the deficiency occurred.

 

Hope this helps -

 

Best,

 

Mark Northam