457 visa holders face new school fees19 July 2016 by News Desk
457 visa holders are mainly temporary skilled workers, many of whom aim for permanent residency Down Under.
457 visa holders with children living in South Australia will be affected by the new rules that will come into force in January 2017.
“If you plan to migrate to Australia on a 457 Visa, or if you hold such a visa and already live in South Australia, contact us today to find out more about how it will affect you,” says Darrell Todd, founder of thinkingaustralia.
The changes to the 457 Visa rules will bring South Australia in line with other Australian states. From January 2017, newly arriving 457 visa holders will be required to contribute to the cost of educating their children in government schools. This requirement will then extend to all 457 visa holders from 1 January 2018.
The amount payable would be based on family circumstances and payment would be made when a child or young person is enrolled in a government school.
457 visa education contribution fees
The annual contribution payable by a family in South Australia on a 457 visa for 2017 would be $5,100 for each primary school student and $6,100 for each high school student.
This amount would be charged for the eldest child in a family, with the fees for all siblings attracting a 10% discount.
The proposed changes would allow parents to elect to pay the contribution upfront annually, per semester, per term or in regular installments.
How income affects the contribution
A contribution fee would not be charged unless the holder of the 457 visa and their spouse/partner earns a combined gross income of more than $57,000.
A means-test would be used, so that a family with one child at school would not pay the full contribution rate until the gross family income reaches $77,000.
The threshold at which maximum fees are payable is increased by $10,000 for each additional child.
For example, a family with 2 school aged children would not pay full fees unless gross family income is $87,000 per year or more.
How do I work out my contribution fee?
You can determine your potential contribution fee by following these steps:
1. Calculate the full fees payable. This will be $5,100 for each government primary school aged student and $6,100 for each government high school aged student
Take into account the 10% discount available for second and subsequent children from the same family.
2. Figure out your anticipated annual gross family income (including salary sacrifice and overtime payments) rounded down to the nearest whole $1000.
3. Figure out which threshold applies – for which the full contribution is payable – based on the number of children attending government schools.
For one child this is $77,000, for 2 children from the same family this is $87,000 and for 3 children from the same family this is $97,000
4. Where the family income calculated at step 2 exceeds the threshold calculated at step 3, the full contribution calculated at step 1 will apply.
What if my income is between $57,000 and $77,000?
Where the family income is more than $57,000, but less than the threshold calculated at step (3), a percentage of the full fee calculated at step (1) is payable. The relevant percentage will depend on the number of children attending a government school.
For one child, the contribution percentage payable increases by 5% for each additional $1000 of income above $57,000. The percentage payable on this additional income changes with the number of children. For example two children by 3.33% or 3 children by 2.5%
Who is exempt?
Where the family income calculated at step 2 is $57,000 or less, no contribution would be payable. A full or partial waiver of fees for exceptional cases of hardship would be available.
If you are on a 457 visa and become a permanent resident you would no longer have to pay the contribution. You would need to provide evidence to the department so that your new residency status can be registered.
For the first year, the new charge will only apply to people who arrive in SA from January 1, 2017.
From January 2018 it will apply to all 457 visa holders living the state, regardless of when they arrived.
For more information and one-to-one advice contact thinkingaustralia today.
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