Skilled employer sponsored regional is a program that enables businesses to employ foreigners under a 494 visa if they cannot source skilled Australian workers or permanent residents to fill positions. The main purpose of the skilled employer sponsored regional program is for foreign workers to fill the jobs offered in regional areas, thereby reducing the identified labour shortages and scarcity of skilled labour in regional areas.
The Skilled Employer Sponsored Regional program is accessible for businesses located in a regional area. Regional areas are anywhere in Australia outside major cities (Greater Sydney, Brisbane, and Melbourne).
Main Criteria:
- Sponsoring businesses can sponsor individuals whose occupation is in the relevant skilled occupation list.
- Sponsoring businesses must prove they could not find skilled Australian workers or permanent residents and have the financial capacity to under the skilled employer sponsored regional Program.
- Applicants sponsored under the skilled employer sponsored regional program must: have 3 years of relevant work experience in the nominated or related occupation; be under 45 years old; reside in a regional area; meet English language proficiency; and meet the health and character requirement.
Business Obligations:
Obligations on behalf of the business under the skilled employer sponsored regional program (494 visa):
- Notify changes to the Department of Home Affairs if changes in the sponsorship occurs, such as sponsored employees’ change of location work or cessation of sponsored employees’ employment;
- Non-engagement in discriminatory practices against sponsored employees.
- Obligation to provide sponsored employees employment records if requested by the Department of Home Affairs or the Minister;
- Cover government lodgement fees in relation to the sponsorship, nomination and SAF levy.
Sponsored Employees Obligations:
Obligations on behalf of foreign employees sponsored under the skilled employer sponsored regional program (494 visa) include:
- Not engage in any employment other than the sponsoring business;
- Notify changes to the Department of Home Affairs in relation to their residential address, email and phone contact details, and passport details;
- If requested, attend interview/s with the Department of Home Affairs;
- Must reside in regional area.
Benefits of 494 Visa:
Benefits of the program for sponsors include:
- SAF levy is payable on a one-off basis under the 494 skilled sponsoring program, while under the 482 program, SAF levy is paid per year worked by the nominee. The SAF levy fee in relation to the 494 skilled sponsoring program is AUD$3,000 if the business has an annual turnover less than 10 million, and AUD$5,000 if the business has a turnover above 10 million;
- There is no SAF levy fee applicable to the permanent stage of subclass 491 – the subclass 191. This differs to the permanent stage of subclass 482 – the subclass 186, on which SAF Levy is applicable;
- 494 skilled occupation list has over than 650 occupations and a broader range of occupations, including for example fruit or nut grower and deer farmer.
Impact of COVID-19 Pandemic:
The pandemic period affected several sectors of the Australian economy which saw the international workforce slip away, causing massive labour shortages in several industries. With the increase in the need for skilled labour, the Australian government has adjusted the skilled labour sponsoring programs to increasingly retain skilled international labour that meets the needs of skilled labour in businesses operating within Australia.
Therefore, some of the measures established by the Australian government to retain skilled labour in businesses located in regional areas are:
- An extension on skilled regional (provisional visa);
- Apply for permanent residency through the permanent residence skilled regional 191 visa from 16 November 2022 of applicants that have been on a 494 visa for at least 3 years.
Many concessions are still on the agenda for the Department of Home Affairs and the minister to consider.
If you have any questions in relation to the current legislation applicable to the Skilled Employer Sponsored Regional Program, please do not hesitate to contact us at ross@crystalmigration.net or on (02) 9189 2988.