Skilling Australians Fund (SAF)

Updated 07 December 2022

What is the SAF levy?

The SAF levy is a charge payable to the Department of Home Affairs by employers nominating overseas skilled workers for any of the following visas:

  • nomination to change a sponsor for an existing Temporary Work (Skilled) visa (subclass 457) or Temporary Skill Shortage (TSS) (subclass 482) visa holder
  • Temporary Skill Shortage (TSS) (subclass 482)
  • Skilled Employer Sponsored Regional (SESR) (sbuclass 494)
  • Employer Nomination Scheme (ENS) (subclass 186)

What is the purpose of the SAF levy?

The SAF levy was implemented to require employers that sponsor temporary and permanent overseas skilled workers to contribute to the ongoing and broader skills development of Australians. Monies from the SAF levy are managed by the Department of Employment and Workplace Relations to support apprenticeships, traineeships, and other employment-related training activities.

When did it commence?

The SAF Charges Act commenced on 12 August 2018, and it is applicable to all TSS, ENS and and SESR (and former subclass 187 RSMS) nominations lodged on or after 12 August 2018.

It is a new requirement?

Not exactly. The levy replaces requirements in the Migration Regulations requiring sponsors under the temporary sponsored work visa program, or employers nominating a worker for the Direct Entry stream of the Subclass 186 visa, to have recently spent:

  • the equivalent of at least two per cent of their business’ payroll in contributions to an industry training fund (training benchmark A); or
  • the equivalent of at least one per cent of their business’ payroll on the training of Australians (training benchmark B).

The training benchmarks no longer applied after 12 August 2018.

For TSS visas, the sponsorship obligation regarding the training benchmarks will only apply for the 12 month period ending on or before 12 August 2018. For ENS applications, the training benchmarks only apply to nominations lodged before 12 August 2018 which have not been decided. 

When must the employer pay the SAF levy amount?

The SAF levy amount is payable in full when lodging a nomination application.

How much is the SAF levy for TSS visas?

The amount depends on the size of the sponsoring business and the proposed period of stay of the overseas worker in Australia.

  • Business with annual turnover less than $10 million: AUD 1200 per year or part thereof
  • Business with annual turnover of $10 million or more: AUD 1800 per year or part thereof.

How much is the SAF levy for ENS / SESR visas?

The amount depends on the size of the sponsoring business and the proposed period of stay of the overseas worker in Australia. Pro-rata amounts apply to nominations for existing SESR visa holders. 

  • Business with annual turnover less than $10 million: AUD 3000 one-off
  • Business with annual turnover of $10 million or more: AUD 5000 one-off

Is SAF levy payment tax deductible?

Please consult with your registered Australian tax agent for further information.

Are there any exemptions to the SAF levy?

Only religious worker positions nominated under the Labour Agreement streams for TSS or ENS visas are exempted, all other positions nominated must pay the SAF levy. 

Can I request a refund of the SAF levy?

Yes, but only in exceptional cases. Please contact us for further details.

Who should pay the SAF levy, the employer or the employee?

The employer. Sponsors must NOT pass on the costs of the SAF levy to overseas skilled workers. 

 

For more information, please contact us. We are here to help.