New rules to affect 457 visa holders from January 2017

New rules to affect 457 visa holders from January 2017

If you are a 457 visa holder, have school-going children and reside in South Australia, this news is for you.

South Australia state government has proposed a public education contribution fee for 457 visa holders.

This affects families on 457 visas whose children attend public schools in South Australia. This move will affect a significant number of Indian families settled in South Australia as they are the second largest group after China, to hold 457 visa in South Australia.

These proposed changes are aimed at bringing South Australia in line with some other Australian states and territories and how they manage contributions towards public education.

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.

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 a 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 instalments.

A contribution fee would not be charged if the total family income does not exceed $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 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.