Employer Fee Policies – Who can pay for what

As we approach a new year and the rollout of the Skills in Demand (SID) visa, now is the perfect time for employers to review their fee policies regarding visa sponsorship. Adherence to legal obligations surrounding who pays for what, and ensuring compliance with Australia’s migration laws, is critical for both temporary and permanent sponsored visas.

Key Changes to Government Fees

1.    Flat Visa Fee for All Streams:
The SID visa introduces a simplified fee structure:

  • Main Applicant: $3,115
  • Spouse: $3,115
  • Dependent Children (under 18): $780.

2.    Skills Australia Levy:
The levy remains unchanged:

  • $1,200 per year for sponsoring businesses with a turnover of less than $10 million.
  • $1,800 per year for sponsoring businesses with a turnover of over $10 million.
  • For permanent residence applications, the levy is $3,000 for small businesses of under $10 million turnover and $5,000 for large businesses.

3.    ENS Nomination Fee
The Government has clarified that the nomination fee ($540) must be paid by employers – this was previously unclear.

Who Pays for What?

Employers and employees have defined obligations depending on whether the visa is temporary or permanent

Skills in Demand Visa – all streams (Temporary)

Home Affairs fees  Sponsor must pay    Sponsor or Applicant can pay   
Nomination fee  ✔
Visa Application fee  ✔
Training Levy  ✔
Professional fees (ex GST)
Nomination  ✔
Visa application  ✔
Out of pockets – File and Data Maintenance  ✔

 

Permanent Residence 

Home Affairs fees  Employer must pay    Employer or Applicant can pay 
Nomination fee* ✔
Visa Application fee ✔
Training Levy ✔
Professional fees (ex GST)
Nomination ✔
Visa application ✔
Out of pockets – File and Data Maintenance ✔

 

Clawbacks and Fringe Benefit Tax (FBT) Considerations

  • Clawback Arrangements: Many businesses include clauses to recover sponsorship costs if the employee leaves within a certain period. These arrangements should be carefully drafted and reviewed in consultation with employment lawyers.
  • FBT Implications: Sponsorship costs covered by the employer may attract Fringe Benefits Tax. Employers must consult this with taxation/finance teams.

Our fees

In light of the recent legal changes introduced with the Skilled in Demand (SID) visa, Ajuria Lawyers is currently reviewing our professional fees and cost structures to ensure alignment with updated regulatory requirements and best practices. Our goal is to provide transparent, compliant, and competitive services that meet the needs of both employers and employees under the new framework.

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