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457 Training Benchmark A v 457 Training Benchmark B

Let's start by looking at what Training Benchmark A and B are.

Training Benchmark A is a contribution of 2% of payroll expenditure (payroll is calculated on the previous 12 months operation) to an industry training fund for the training of Australian Citizens or Permanent Residents.  If there is no industry training fund then payment can be made into a recognised scholarship fund.

Training Benchmark B is evidence of spending 1% of payroll (payroll is calculated on the previous 12 months operation) on training for their employees who are Australian Citizens or Permanent Residents.  Training Providers prepare a training plan for the business to meet the training needs of that particular business.   This training plan needs to be attached to the documentation sent in to the DIBP for the purpose of demonstrating to the DIBP that the company has complied with it's training obligations.

Benefits and Drawbacks - Training Benchmark A

In my opinion, the Training Benchmark A is simple, instant and can provide an online receipt straight away.  I can see no drawbacks with the Training Benchmark A payment scheme.  For the 2% contribution the employers can do away with the hassles and paperwork associated with the Benchmark B scheme.  In the case of some providers in the market, there is no minimum or maximum dollar amount.

Benefits and Drawbacks - Training Benchmark B

From my perspective Training Benchmark B is a lot more complicated and will face heavier post-purchase scrutiny going forward.  Training Benchmark B training has to match the needs of the business and demonstrate as such.  The number of Australian employees as against the number of non-Australian employees also needs to be quantified.

Feedback provided to Migration Alliance regarding Training Benchmark B has centred around DIBP not being entirely happy about training in areas such as First Aid or Occupational Wprkplace Health and Safety as these are compliance areas and should be done anyway, and not as some sort of training. 

The quality of training is not assessed.  Companies which offer high commissions for training benchmark B have to be compromising on the quality of the training.  For example if $10,000 is spent and a company offers commission on this of $4,000 then the real training offered is $6,000 worth.  It must impact on the quality. 

Be careful about Companies in the 457 Training Benchmark B space which offer training on a per person basis.  There are organisations which offer training on a per-group basis, not per person.  For example, one provider might offer training at $550 per person.  Another might offer training at $650 per group of people.  This means that the second option is actually the better value.

Be careful about companies in the 457 Training Benchmark B space which don't openly disclose their pricing structure on their websites or other documentation.  Be careful about providers who state that they are the 'largest providers in Australia' with the 'most agents as clients'.  By far the largest provider in Australia is TAFE NSW for Training Benchmark A and B.

Registered Migration Agent Feedback - Summary

Favourites from the Registered Migration Agent (RMA) profession for Training Benchmark A:

TAFE NSW   - offering 15% commission and excellent services.   TAFE NSW has been by far the favourite option across the profession, especially for Training Benchmark A payments.

Favourites for Training Benchmark B:

Interestingly RMAs have reported  Magill College and TAFE NSW as their favourites.  Magill College have not previously worked with Migration Alliance in the Training Benchmark B space, but we have decided to put their details up on our website due to the reporting of positive feedback about their services from the profession.    Magill College pay RMAs 25% commission.  Agents again also liked TAFE NSW  which offers RMAs 15% commission. 

My feedback

I already know TAFE NSW as Migration Alliance and LTA have had a successful business relationship with them for years.  This means I am incredibly biased.  I really like Training Benchmark A and B from TAFE NSW. 

I have had a look at Magill College as and noticed that they are CRICOS, offer RPL and are a Registered Training Organisation.   I am pleased to see Magill offering real face-to-face training in the Training benchmark B space.  This represents genuine training.  Of course, Sydney TAFE also offer face-to-face training.

Finally from my perspective the added benefit of TAFE NSW is that it has reputation and brand which has been built over about 123 years and is a reliable public sector training provider.  TAFE NSW is backed by government with a reputation of longevity and trust.

I will attempt to find out more information about the Magill College Training Benchmark B services and report back soon. 

If RMAs have feedback on Training Benchmark A and B then please send it through to me on This email address is being protected from spambots. You need JavaScript enabled to view it. .

 

 

 

 

 

 

 

 

 

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  • Guest
    Gaurav Wednesday, 19 August 2015

    Hi my name is Gaurav I'm on 457 visa and already complete my 2 years , now I'm about to apply 186 but I just found out my employer haven't pay training funds for last years and my lawyer says to me he has to shows the funds for last four years bcos business nomination is approved in oct 2011 and I got 457 visa on 24 June 2013. So I just want to know if my employer pay all back years training funds to any TAFE which is 2 percent of the pay roll of past years DIBP will accept that back years payment with current dated receipts or not. I need your suggestion. Thanks

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