Skilling Australians Fund (SAF) Levy – Employer Guide for Subclass 482

The Skilling Australians Fund (SAF) levy is an employer contribution that may apply when an Australian business nominates an overseas worker under an eligible employer-sponsored visa program, including the Skills in Demand (SID) visa (subclass 482).

The SAF levy is separate from the worker's visa application charge and is generally an employer-side cost associated with the nomination.

Australian businesses considering sponsorship should understand how the SAF levy fits into the overall cost of employing an overseas skilled worker.

What Is the Purpose of the SAF Levy?

The SAF levy forms part of Australia's employer-sponsored migration framework and contributes to skills and workforce development in Australia.

The broader purpose is to support investment in training and skills development while Australian businesses access skilled workers through employer-sponsored migration programs.

The levy should not be confused with:

• The Subclass 482 visa application charge

• The employer sponsorship application fee

• The nomination application fee

• Migration agent or legal fees

• Skills assessment costs

• English language testing

• Health examinations

Each of these costs may need to be considered separately when calculating the overall cost of sponsorship.

Who Is Responsible for Paying the SAF Levy?

The sponsoring employer is responsible for the SAF levy where it applies to the relevant nomination.

The cost should not simply be treated as an expense that can be transferred to the sponsored worker through an informal reimbursement arrangement or other cost-recovery arrangement.

Employers must comply with their sponsorship obligations and applicable Australian migration and workplace laws when sponsoring overseas workers.

Which Visa Programs Can Involve the SAF Levy?

The SAF levy is associated with a number of employer-sponsored skilled visa programs.

These include:

• Skills in Demand visa (subclass 482)

• Employer Nomination Scheme visa (subclass 186)

• Skilled Employer Sponsored Regional (Provisional) visa (subclass 494)

The exact requirements and applicable charges depend on the visa program and nomination circumstances.

The Department of Home Affairs currently lists Subclass 482, Subclass 186 and Subclass 494 among Australia's employer-sponsored skilled visa options.

How Is the SAF Levy Calculated?

The amount of SAF levy payable depends on factors such as:

• The size and turnover of the sponsoring business

• The visa program involved

• Whether the nomination is for a temporary or permanent visa

• The relevant period of the nomination

For temporary employer-sponsored visas such as Subclass 482, the levy is generally calculated according to the relevant nomination period.

For permanent employer-sponsored visas such as Subclass 186, different levy arrangements apply.

Because government charges and applicable rules can change, employers should confirm the amount payable for the specific nomination before lodging.

SAF Levy and Subclass 482

The Skills in Demand (SID) visa (subclass 482) is an employer-sponsored temporary visa.

The current SID program has three streams:

• Core Skills stream

• Specialist Skills stream

• Labour Agreement stream

The employer must meet the applicable sponsorship and nomination requirements for the selected stream.

The SAF levy, where applicable, forms part of the employer's nomination costs rather than the overseas worker's personal visa application charge.

When Is the SAF Levy Paid?

Where a SAF levy is payable, it forms part of the nomination process and must be paid in accordance with the Department of Home Affairs' applicable payment requirements.

Employers should ensure that the correct business information, nomination details and proposed employment period are entered before submitting the nomination.

If the nomination circumstances change, the employer should obtain appropriate advice about whether a new nomination or other action is required.

SAF Levy and Labour Agreements

Employers operating under a labour agreement may also have SAF levy obligations where the relevant visa nomination requires it.

Labour agreements allow approved Australian businesses to sponsor skilled overseas workers where there is a demonstrated need that cannot be met through the Australian labour market or where standard visa programs are not suitable. They can be used with programs including Subclass 482, Subclass 186 and Subclass 494.

The specific terms of a labour agreement can affect the applicable nomination arrangements, occupations and concessions.

Is the SAF Levy Refundable?

The SAF levy is not automatically refundable simply because a nomination or visa application is withdrawn or unsuccessful.

Australian migration law provides specific circumstances in which a refund of a nomination fee and/or SAF levy may be available.

The Department of Home Affairs states that refunds are governed by legal and administrative rules and that fees are generally not refunded simply because an application, nomination or sponsorship was refused or because the applicant or sponsor changed their mind.

Accordingly, employers should assess refund eligibility based on the specific circumstances of the nomination rather than assuming that a refund will be available.

Possible SAF Levy Refund Circumstances

Depending on the circumstances and applicable legislation, a refund may potentially be available in certain situations, including some cases involving:

• Departmental error

• Withdrawal of a nomination in circumstances covered by the refund rules

• Certain sponsorship or nomination issues

• Specific visa refusal circumstances

• Other circumstances prescribed under the applicable refund provisions

The Department's refund process requires the circumstances of the particular application or nomination to be assessed. There is also no universal guarantee that a nomination withdrawal will result in a SAF levy refund.

What Happens If the Sponsored Worker Leaves the Employer?

A sponsored worker may change employment or cease employment in circumstances permitted under Australian migration law.

If employment ends, the employer should comply with its sponsorship obligations and notify the Department where required.

Whether an employer can claim a SAF levy refund following cessation of employment depends on the circumstances and the applicable refund provisions. Employers should not assume that simply ending the employment relationship automatically results in a refund.

SAF Levy Is Different From the Visa Application Charge

It is important to distinguish between the worker's visa costs and the employer's sponsorship costs.

Worker-related costs may include:

• Subclass 482 visa application charge

• Additional applicant charges, where applicable

• English language testing

• Skills assessment, where required

• Health examinations

• Police or character documents

• Professional migration assistance

Employer-related costs may include:

• Standard Business Sponsorship application

• Nomination application

• SAF levy, where applicable

• Recruitment and Labour Market Testing expenses, where required

• Professional advice and compliance costs

The Department of Home Affairs confirms that visa application charges are separate from certain sponsorship and nomination fees that may be payable by a sponsor or nominator.

Employer Compliance Responsibilities

Businesses sponsoring overseas workers should consider more than the financial cost of the SAF levy.

Employers must understand and comply with their sponsorship obligations, including requirements relating to the sponsored worker's employment, nominated occupation and other applicable conditions.

Depending on the visa and nomination, employers may also need to consider:

• Labour Market Testing

• Salary and employment conditions

• Australian Market Salary Rate requirements

• Occupational licensing or registration

• Genuine position requirements

• Sponsorship obligations

• Record-keeping requirements

• Notification obligations

Failure to meet sponsorship obligations can have serious consequences for an Australian business.

Why Employers Should Get Professional Advice

The cost and requirements of sponsoring an overseas worker can vary depending on the employer, occupation, visa stream and circumstances of the nomination.

Before proceeding, an Australian business should establish:

1. Whether it can sponsor the proposed worker

2. Which Subclass 482 stream is appropriate

3. Whether the nominated occupation is eligible

4. Whether the salary requirements are satisfied

5. Whether Labour Market Testing is required

6. Whether a SAF levy applies

7. The applicable nomination and sponsorship charges

8. Whether the worker meets the visa requirements

Professional advice can help employers understand their obligations and reduce the risk of mistakes during the sponsorship and nomination process.

Need Help With Subclass 482 Employer Sponsorship?

If your Australian business is considering sponsoring an overseas skilled worker, understanding the SAF levy and total sponsorship costs is an important part of planning the application.

The Visa can assist eligible employers and visa applicants with understanding the relevant Skills in Demand (subclass 482) requirements, sponsorship arrangements and nomination process.

Important Disclaimer

Migration legislation, government fees, sponsorship requirements and refund rules can change.

The information on this page is provided for general information purposes only and should not be treated as legal or migration advice. The applicable SAF levy and refund eligibility should be confirmed against the current requirements of the Australian Department of Home Affairs before lodging a nomination.