Training Benchmark: The Training Obligation When Sponsoring Overseas Workers
The training benchmark is an obligation that small businesses often overlook or misunderstand. Failing to meet the training benchmark can amount to a breach of SBS obligations and place the business under DHA scrutiny.
What the training benchmark is
The training benchmark is a requirement that a business holding an SBS spend a set proportion on training Australian workers — not overseas workers, but Australian workers (citizens and permanent residents).
The aim is to ensure a business does not simply recruit overseas labour while neglecting to train the local workforce.
Two ways to meet the training benchmark
Option 1: Spend 1% of the annual payroll on training Australian workers (citizens and permanent residents) through recognised forms of training.
Option 2: Contribute to an industry training fund designated by DHA. The contribution rate is equivalent.
Training activities that count
Training costs that are usually counted include:
- Tuition fees, professional courses, and vocational qualifications
- The cost of attending professional seminars and conferences
- On-the-job training with specific documentation
- Fees for internal or external trainers
- Scholarships or study sponsorships
Not counted: recruitment costs, the salaries of overseas workers, and migration costs.
Small and medium enterprises (SMEs)
For a small business with few Australian workers, the training benchmark still has to be met, but the absolute figure will be smaller. What matters is having documentation of the actual training spend.
Records to keep
- Training invoices (worker name, course name, date, amount)
- Contracts with training providers
- A list of the Australian workers who took part
- The total annual payroll
DHA may request these documents during a monitoring check or when the SBS is renewed.
When the SBS expires and needs renewal
When applying to renew an SBS, the business must show it has met the training benchmark during the term of the current SBS. No records means a risk of the renewal being refused.