If you are an employer who is seeking to fill a position in your business by sponsoring or nominating an overseas worker under the following visa programs, you will be required to pay a Skilling Australians Fund (SAF) levy as part of the nomination application fee:
- Subclass 482 Temporary Skill Shortage (TSS) visa;
- Subclass 494 (Skilled Employer Sponsored Regional (Provisional)) (SESR) visa; or
- Subclass 186 Employer Nomination Scheme (ENS) visa.
The skilling Australians fund levy is payable under both the standard business sponsor and labour agreement sponsor streams of the relevant visa programs.
The employer is responsible for paying the Skilling Australia Fund levy. It must not be passed on to the visa applicant.
There are no exemptions from paying the SAF levy, except where a nomination is lodged for the occupations of Minister of Religion (including Bishops) and Religious Assistants under the Labour Agreement stream of the TSS, SESR and ENS visa programs.
The SAF levy was first introduced for nomination applications for TSS and ENS 186 visas lodged on or after 12 August 2018. It was later also applied to the SESR visa (as of 16 November 2019). The levy replaced the previous training benchmarks for nomination applications.
Regional Sponsored Migration Scheme (RSMS)
Also be aware that the SAF levy is payable for nominations for the Subclass 187 Regional Sponsored Migration Scheme (RSMS) visa program. This visa was replaced by the SESR visa effective from 16 November 2019. Note these changes only affect the Direct Entry visa stream under the Subclass 187 visa program. Applications for the RSMS visa remain open to eligible TSS and Subclass 457 Temporary Work (Skilled) visa holders under the Temporary Residence Transition Stream (TRTS).
For further information about these changes, please see the following articles:
New Skilled Regional Visas to be introduced
Skilled Regional Sponsored Visa
Further Regulations released for the new regional sponsored visas to commence from 16 November 2019
The abolishment and replacement of Subclass 457 visa
457 visa to PR (updated for new rules)
What Are The SAF Funds Used For?
The SAF levy funds, which are managed by the Department of Education, Skills and Employment (DESE), are collected to ensure that businesses that benefit from employing migrants are also skilling Australians, to contribute to the broader skills development of Australians. The funds support the training of apprentices and trainees, to help employers gain skilled workers and to drive innovation and growth in Australian industry.
How Is The SAF Levy Calculated?
The amount payable for the skilling Australians fund levy will depend on the visa program being applied for. A key factor will be the annual turnover of the sponsoring business.
The SAF charges for each visa program are outlined below.
Subclass 482 TSS Nomination
The amount of the SAF levy will depend on two factors, being the annual turnover of the nominating business, and the proposed visa period for the visa applicant’s stay in Australia (between one and four years).
Visa period |
Business turnover less than $10 million |
Business turnover is equal to or more than $10 million |
One year |
$1,200 |
$1,800 |
Two years |
$2,400 |
$3,600 |
Three years |
$3,600 |
$5,400 |
Four years |
$4,800 |
$7,200 |
To illustrate how the SAF levy is calculated for a TSS visa, take the example of a business with an annual turnover of $6 million, which seeks to sponsor an overseas worker for a TSS visa for two years. The amount of the levy payable by the employer when submitting the nomination application to the Department of Home Affairs (the Department) will be $2,400.
Subclass 494 SESR Nomination
The amount of the SAF levy for an applicant or a proposed applicant for a Subclass 494 visa is based on the annual turnover of the nominating business and is calculated as follows:
|
Business turnover less than $10 million |
Business turnover is equal to or more than $10 million |
SAF levy (base amount) |
$3,000 |
$5,000 |
To illustrate how the SAF levy is calculated for a SESR visa for an applicant or proposed visa applicant, a business with an annual turnover of $12 million will be liable to pay a $5,000 levy at the time of nomination application lodgement.
The amount of the SAF levy for a holder of a subclass 494 visa is based on the annual turnover of the nominating business and the elapsed years in the visa period, calculated as follows:
To illustrate how this is calculated, consider the case where the business turnover for the nominator is less than $10 million, and the number of years that the subclass 494 visa has been held is 2 years. This means there are 3 years remaining on the visa. In this instance, the SAF levy is calculated as follows:
$3,000 x [ (3/5) ] = $1,800
Subclass 186 ENS and 187 RSMS Nominations
The amount of the SAF levy for an employer nomination scheme visa or RSMS visa is based on the annual turnover of the nominating business, and is calculated as follows:
|
Business turnover less than $10 million |
Business turnover is equal to or more than $10 million |
SAF levy |
$3,000 |
$5,000 |
To illustrate how the SAF levy is calculated for an ENS 186 or RSMS 187 visa, a business with an annual turnover of $2 million, for example, would be required to pay an levy of $3,000 at the time of nomination lodgement.
Also be aware that an ENS visa holder will be subject to visa 186 conditions, which stipulates that if they are outside Australia at the time of visa grant, they must make their first entry before a date specified by the Minister.
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Given the complexity of the migration laws and the fact that every case is different, we recommend that you seek professional advice if you are considering sponsoring or nominating an overseas worker either for temporary or permanent residence to Australia. Your Migration Agent will be able to advise you on the eligibility requirements, documentary evidence that will be required as well as all costs that will apply, including the SAF levy noted above. Being well prepared and properly informed about the process will give you the greatest chance of not only a successful outcome, but also avoid unnecessary delays.
For up to date advice on sponsorship or nomination requirements and the SAF levy, book your confidential consultation with a migration agent in Adelaide. PAX Migration Australia is a leading immigration advice service based in Adelaide, and we aren’t expensive! Just ask us!
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Contact us to book a no-obligation consultation to find out more about sponsoring or nominating an overseas worker for your business and the costs involved.
To learn more about how the SAF levy funds are used, please refer to the Skilling Australians Fund Fact Sheet produced by the Department of Education, Skills and Employment.
Sources/Links:
Australian Government – Department of Home Affairs – Immigration and citizenship – Visas – Employing or sponsoring workers – Sponsoring workers – Learn about sponsoring – Cost of sponsoring
Australian Government – Department of Education, Skills and Employment – Skilling Australians Fund
https://www.dese.gov.au/skilling-australians-fund
Australian Government – Department of Education, Skills and Employment – Skilling Australians Fund – Resources – Skilling Australians Fund Factsheet
https://www.dese.gov.au/skilling-australians-fund/resources/skilling-australians-fund-factsheet