SAF Levy: Skilling Australians Fund Levy Explained for Employers
The Skilling Australians Fund (SAF) Levy is a mandatory payment that Australian employers must make when they nominate a worker for certain employer-sponsored visas, including the subclass 482 (Temporary Skill Shortage) and subclass 494 (Skilled Employer Sponsored Regional). The levy funds apprenticeships, traineeships, and vocational training programs for Australians. It replaced the old training benchmark requirements and it's one of the most significant costs employers face in the sponsorship process — and it's non-refundable, even if the nomination is refused or the worker never arrives.
What Is the SAF Levy?
The SAF levy was introduced on 12 August 2018 as part of the Migration Amendment (Skilling Australians Fund) Act 2018. Its purpose is straightforward: employers who bring in overseas workers contribute financially to the training and upskilling of Australian workers.
Before the SAF levy existed, employers had to meet "training benchmarks" — either spending a percentage of payroll on training or contributing to an industry training fund. The SAF levy replaced that system with a simpler, fixed-cost payment that goes directly into a national training fund.
The money collected through the SAF is distributed to state and territory governments to fund:
- Australian apprenticeships
- Traineeships
- Pre-apprenticeship programs
- Vocational education and training (VET)
- Other workforce training initiatives
How Much Is the SAF Levy?
The amount you pay depends on two factors: whether you're classified as a small business or other business, and whether the visa pathway is temporary or permanent.
Small Business (annual turnover less than $10 million)
| Visa Pathway | SAF Levy per Year |
|---|---|
| Temporary (e.g., 482 Short-Term, Medium-Term) | $3,000 per year |
| Permanent (e.g., 482 to 186 transition, 494 to 191 transition) | $5,000 per year |
Other Business (annual turnover $10 million or more)
| Visa Pathway | SAF Levy per Year |
|---|---|
| Temporary (e.g., 482 Short-Term, Medium-Term) | $5,000 per year |
| Permanent (e.g., 482 to 186 transition, 494 to 191 transition) | $7,000 per year |
Important: These are per-year figures. For a 482 visa nomination with a four-year term, a large business would pay $5,000 x 4 = $20,000 total. For a two-year term, it's $5,000 x 2 = $10,000.
The levy is calculated based on the nomination period, not the visa grant period. If you nominate for two years, you pay for two years — regardless of whether the visa is ultimately granted for a different duration.
When Do You Pay the SAF Levy?
The SAF levy is payable at the time of nomination lodgement. When an employer submits a nomination application through ImmiAccount or the sponsorship portal, the SAF levy must be paid before the nomination can be processed.
Payment timing matters: The levy is due upfront, in full, when you lodge the nomination. It's not an instalment arrangement — the entire amount for the full nomination period must be paid at lodgement.
For permanent visa nominations (like the subclass 186 Employer Nomination Scheme), the full levy amount is due at the time of the permanent nomination.
Which Visas Require the SAF Levy?
The SAF levy applies to nominations for:
- Subclass 482 — Temporary Skill Shortage visa (all streams)
- Subclass 494 — Skilled Employer Sponsored Regional (Provisional) visa
- Subclass 186 — Employer Nomination Scheme (Direct Entry and Transition streams)
- Subclass 187 — Regional Sponsored Migration Scheme (legacy applications)
- Skills in Demand (SID) visa — the replacement for the 482, also attracts the SAF levy
The levy is tied to the nomination, not the visa application itself. If an employer nominates a worker and that nomination is approved, the worker then lodges a separate visa application with its own application charge. The two payments are distinct.
The Non-Refundable Rule
This is the part that catches many employers off guard: the SAF levy is non-refundable in most circumstances.
You won't get your money back if:
- The nomination is refused
- The visa application is refused after the nomination is approved
- The worker withdraws their visa application
- The worker doesn't travel to Australia
- The worker leaves the employment before the nomination period ends
- The worker's visa is cancelled
There are very limited exceptions where a refund may be available — primarily if the nomination was lodged in error or if there's a duplicate payment. But as a general rule, treat the SAF levy as a sunk cost the moment you pay it.
What does this mean practically? Employers need to be confident about their nomination before lodging. Don't nominate a worker you're unsure about, and make sure labour market testing and other requirements are in order before spending the money.
Small Business vs. Other Business: How It's Determined
Your business classification is based on annual turnover — specifically, the base year income as recorded in your business's most recent tax return.
- Small business: Annual turnover of less than $10 million
- Other business: Annual turnover of $10 million or more
For newly established businesses without a full year of trading history, the Department may estimate your turnover based on available financial records.
Consolidated turnover applies for businesses that are part of a group. If your business is a subsidiary of a larger group with combined turnover exceeding $10 million, you'll likely be classified as "other business" even if your individual entity's turnover is smaller.
The Department can request evidence of your turnover, so don't misrepresent your business size to get the lower rate. If a discrepancy is found after nomination, it can cause problems with your sponsorship obligations.
SAF Levy and the Skills in Demand (SID) Visa
With the introduction of the Skills in Demand visa and broader reforms to employer-sponsored migration, the SAF levy structure has been retained. The levy amounts and the small/large business distinction remain the same under the new framework.
If you're transitioning from sponsoring workers under the 482 visa to the SID visa, expect the same SAF levy costs.
Can Employers Pass the Cost to the Worker?
No. Under Australian law and the sponsorship obligations framework, employers cannot recover the SAF levy from the sponsored worker. This is considered a prohibited cost.
The SAF levy is the employer's responsibility. Deducting it from wages, requiring the worker to reimburse it, or making the job offer conditional on the worker paying the levy are all violations of sponsorship obligations. Breaching these obligations can result in sanctions, including:
- Infringement notices and civil penalties
- Barring from future sponsorship
- Cancellation of existing sponsorship approval
Planning for SAF Levy Costs
For employers sponsoring multiple workers, the SAF levy can add up quickly. Here's how to factor it into your planning:
Example: Medium-sized business ($15M turnover) sponsoring 5 workers on 482 visas for 4-year terms
- SAF levy per worker: $5,000 x 4 years = $20,000
- Total SAF levy for 5 workers: $100,000
- Plus nomination fees, visa application charges, and any migration agent costs
That's a significant investment. Some businesses factor the SAF levy into their overall recruitment budget alongside advertising costs, labour market testing expenses, and migration agent fees.
Related Resources
Understanding the SAF levy is just one part of the employer-sponsored visa process. These resources cover related topics:
- Labour Market Testing Explained — what employers must do before nominating a worker
- Skilled Occupation Lists — checking whether your occupation is eligible for nomination
- ANZSCO Codes — finding the correct occupation code for your nomination
- ImmiAccount Explained — lodging nominations and paying the SAF levy online
- MARA and Migration Agents — professional assistance with employer-sponsored visa processes
