Skilling Australians Fund (SAF) Levy

The Skilling Australians Fund regulations received Royal Assent on 22 May 2018. The Migration Amendment (Skilling Australians Fund) Act 2018 (Cth) and the Migration (Skilling Australians Fund) Charges Act 2018 (Cth) both received Royal Assent and the Skilling Australians Fund (SAF Levy) is therefore now in effect.

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Skilling Australians Fund

In summary, the SAF Levy has commenced and applies to business sponsors.

Further details regarding the Skilling Australians Fund has been provided for in regulations. These include:

(a) when the SAF Levy is due and payable;

(b) the method of paying the SAF Levy (including the currency in which the charge must be paid);

(d) the overpayment or underpayment of the SAF Levy;

(e) the payment of a penalty in relation to the underpayment of SAF Levy; and

(f) the giving of information and keeping of records relating to a person’s liability to pay the SAF Levy.

Which visa subclasses are affected?

There are several visa classes affected by the Skilling Australians Fund (SAF Levy).

Temporary visas:

Temporary Skill Shortage visa (Subclass 482 visa)

Permanent visas:

Employer Nomination Scheme visa (Subclass 186 visa)
Regional Sponsored Migration Scheme visa (Subclass 187 visa)

What is the Skilling Australians Fund Levy?

The Skilling Australians Fund levy (SAF Levy) has replaced the training benchmarks scheme. Charges may vary depending on whether a business has an annual turnover of more or less than $10 million. It is expected that:

Small businesses (i.e. those with a turnover of under $10 million) will be required to pay $1,200 per year for each temporary overseas worker, and a one-off levy of $3,000 for each permanent overseas worker; and

Businesses with an annual turnover of $10 million or more will be required to pay $1,800 per year for each temporary worker and a one-off payment of $5,000 for each permanent worker.

Current Skilling Australians Fund Levy

The amount payable varies based on the sponsor’s annual turnover and the visa applicant’s proposed period of stay in Australia. Current Skilling Australians Funds Levy as of 01.01.2022 are as follows:

For sponsors with an annual turnover of less than AU$10 million, the SAF levy is AU$1,200 for each year of the nominated visa applicant’s proposed period of stay i.e. AU$1,200 for a 1-year visa; AU$2,400 for a 2-year visa and so forth.
For sponsors with an annual turnover of at least AU$10 million, the SAF levy is AU$1,800 for each year of the nominated visa applicant’s proposed period of stay i.e. AU$1,800 for a 1-year visa; AU$3,600 for a 2-year visa and so forth.

The SAF levy must be paid upfront, at the time that the nomination is lodged.

SAF Levy - Latest News

What will the maximum levy be?

It has been confirmed that for the first financial year commencing 1 July 2017, the SAF Levy must not exceed:

$8,000 for a temporary visa; and
$5,500 for a permanent visa.

The $8,000 limit for temporary visas is of some concern given previous announcements which indicated $1,200 per year for small businesses and $1,800 per year for larger businesses.

The SAF Levy will increase year on year in line with the All Groups Consumer Price Index.

What do existing sponsors need to do?

Ensure compliance with existing sponsorship obligations; and
Stay tuned for further announcements and be prepared to pay the SAF Levy.

What are the penalties for non-compliance with or underpayment of the SAF Levy?

A maximum penalty of 60 penalty units i.e. $12,600 applies.

Find out more about:

Sponsoring Employees

Standard Business SponsorshipHow to become an approved sponsor?