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Price rise for 457 visa may negatively impact employers: Ai Group

11 May, 2017

"The big price rises in the skilled visa charges paid by employers will have largely negative impacts on businesses," Australian Industry Group Chief Executive, Innes Willox, said recently.

"While we understand and welcome the new investments in apprenticeships, employers will pick up the bill through the visa application price rises which amount to almost ten times current costs in some cases. Although, it should be noted that some businesses will be better off because they will no longer have to contribute 2% of payroll to a training organisation if they spent less than 1% on training themselves as was formerly the case. Given that industry will be funding this training initiative, they should also be governing the fund.

"For some employers who may sponsor a few skilled visa holders this will add significantly to the thousands of dollars in migration and recruitment costs already involved in bringing workers from overseas.

"Other employers, in the construction and labour hire industries, for example, may require hundreds of workers at sites where it is near impossible to attract appropriately skilled staff. For these companies the costs will be great and it will add pressure on prices and business margins.

"Given that this is such a substantial change, the government should carefully monitor its impact on business and be prepared to make adjustments where necessary," Willox said.

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