Australia’s employer-sponsored migration system allows businesses to hire skilled overseas workers when suitable local talent is unavailable. As part of this system, sponsoring employers are required to contribute to the Skilling Australians Fund (SAF) Levy. The levy helps fund training, apprenticeships, and workforce development programs for Australians.
For employers planning to sponsor workers under visas such as the Skills in Demand (SID) Visa Subclass 482, Employer Nomination Scheme (ENS) Subclass 186, or Skilled Employer Sponsored Regional Visa Subclass 494, understanding the SAF Levy is essential.
In this guide, we explain what the SAF Levy is, who must pay it, current levy costs, employer obligations, and how businesses can prepare for sponsorship expenses.
The Skilling Australians Fund (SAF) Levy is a mandatory government charge paid by employers when nominating overseas skilled workers for certain employer-sponsored visas. The levy was introduced in August 2018 to replace previous training benchmark requirements.
The purpose of the SAF Levy is to ensure businesses benefiting from skilled migration also contribute to the training and upskilling of Australian workers. Funds collected are used to support vocational education, apprenticeships, and workforce training programs across Australia.
The SAF Levy commonly applies to employer-sponsored visa nominations including:
The levy is generally paid at the nomination stage when the employer submits the worker nomination application.
The sponsoring employer is legally responsible for paying the SAF Levy. Employers cannot transfer this cost to the sponsored worker or recover the payment from the employee.
This is an important compliance obligation under Australian migration law.
The amount payable depends on:
(Annual turnover below AUD $10 million)
(Annual turnover AUD $10 million or more)
If a large business sponsors a worker on a 4-year Subclass 482 visa:
These payments are generally made once at the nomination stage for permanent residency pathways.
The SAF Levy must usually be paid upfront when lodging the nomination application. The Department of Home Affairs calculates the levy amount automatically during the nomination process.
Nomination applications are generally not processed until payment is made.
In most situations, the SAF Levy is non-refundable, even if:
However, limited refund situations may apply in certain circumstances, such as:
No. Australian migration law prohibits employers from:
Breaching these rules can lead to:
Employers should ensure full compliance with sponsorship obligations.
The SAF Levy was introduced to:
The levy forms part of Australia’s broader skilled migration and workforce planning strategy.
In addition to the SAF Levy, employers may also incur:
Businesses should plan sponsorship budgets carefully before proceeding with overseas recruitment.
Employers may face challenges such as:
Professional migration support can help reduce risks and improve compliance.
Employer-sponsored migration can involve complex compliance requirements, nomination processes, and cost planning. At Orbit Global Mobility & Migration Advisory, we help Australian businesses navigate the sponsorship process with confidence and clarity.
Our services include:
Our experienced migration professionals work closely with employers to simplify the sponsorship process, ensure compliance, and support long-term workforce planning.
Whether you are sponsoring your first overseas employee or expanding your international workforce strategy, Orbit Global Mobility & Migration Advisory provides trusted support tailored to your business goals.
The Skilling Australians Fund (SAF) Levy is an important part of Australia’s employer-sponsored migration system. While it adds an additional cost for sponsoring employers, it also supports the development of Australia’s local workforce through training and skills initiatives.
By understanding SAF Levy obligations, planning sponsorship costs properly, and ensuring compliance with migration laws, employers can successfully hire overseas talent while supporting long-term business growth in Australia.