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Skilling Australians Fund (SAF) Levy

The Skilling Australians Fund (SAF) levy is a mandatory, upfront fee that Australian employers must pay when sponsoring overseas workers on specific skilled visas

Skilling Australians Fund (SAF) Levy Information for Employers

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.

What is the Skilling Australians Fund (SAF) Levy?

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.

Which Visa Programs Require the SAF Levy?

The SAF Levy commonly applies to employer-sponsored visa nominations including:

  • Skills in Demand (SID) Visa Subclass 482
  • Employer Nomination Scheme (ENS) Visa Subclass 186
  • Skilled Employer Sponsored Regional Visa Subclass 494
  • Certain labour agreement streams

The levy is generally paid at the nomination stage when the employer submits the worker nomination application.

Who Must Pay the SAF Levy?

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.

SAF Levy Costs for Employers

The amount payable depends on:

  • The annual turnover of the sponsoring business
  • The visa subclass
  • The proposed visa duration for temporary visas

SAF Levy for Skills in Demand (SID) Visa Subclass 482

Small Businesses

(Annual turnover below AUD $10 million)

  • AUD $1,200 per year for each sponsored worker

Large Businesses

(Annual turnover AUD $10 million or more)

  • AUD $1,800 per year for each sponsored worker

Example

If a large business sponsors a worker on a 4-year Subclass 482 visa:

  • SAF Levy payable = AUD $7,200 upfront

SAF Levy for ENS Subclass 186 & Permanent Employer-Sponsored Visas

Small Businesses

  • AUD $3,000 one-time payment

Large Businesses

  • AUD $5,000 one-time payment

These payments are generally made once at the nomination stage for permanent residency pathways.

When is the SAF Levy Paid?

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.

Is the SAF Levy Refundable?

In most situations, the SAF Levy is non-refundable, even if:

  • The visa application is refused
  • The worker does not commence employment
  • The employer changes their mind after nomination

However, limited refund situations may apply in certain circumstances, such as:

  • Visa refusal on health or character grounds
  • Worker not commencing employment
  • Unused full years for some temporary visa nominations

Can Employers Recover the SAF Levy from Employees?

No. Australian migration law prohibits employers from:

  • Passing SAF Levy costs to workers
  • Recovering sponsorship costs from employees
  • Asking employees to reimburse nomination charges

Breaching these rules can lead to:

  • Sponsorship cancellation
  • Financial penalties
  • Compliance investigations

Employers should ensure full compliance with sponsorship obligations.

Why Was the SAF Levy Introduced?

The SAF Levy was introduced to:

  • Support Australian workforce training
  • Reduce long-term reliance on overseas labour
  • Fund apprenticeships and vocational education
  • Encourage businesses to invest in local workforce development

The levy forms part of Australia’s broader skilled migration and workforce planning strategy.

Sponsorship Costs Employers Should Consider

In addition to the SAF Levy, employers may also incur:

  • Sponsorship application fees
  • Nomination application fees
  • Migration agent or legal fees
  • Recruitment costs
  • Relocation assistance costs

Businesses should plan sponsorship budgets carefully before proceeding with overseas recruitment.

Common Challenges for Employers

Employers may face challenges such as:

  • Understanding SAF Levy calculations
  • Choosing the correct visa pathway
  • Sponsorship compliance obligations
  • Incorrect nomination duration
  • Budget planning for multiple sponsored workers
  • Understanding refund eligibility

Professional migration support can help reduce risks and improve compliance.

How Orbit Global Mobility & Migration Advisory Can Help

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:

  • Standard Business Sponsorship (SBS) guidance
  • SAF Levy cost planning
  • Employer sponsorship compliance support
  • Visa nomination assistance
  • Skills in Demand (SID) Visa support
  • ENS Subclass 186 guidance
  • Regional sponsorship assistance
  • End-to-end migration advisory services

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.

Final Thoughts

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.