Understanding the SAF Levy: What Australian Employers Pay When Sponsoring Overseas Workers

When Australian employers sponsor overseas workers on certain visas, they're required to pay the Skilling Australians Fund (SAF) levy — a government charge that funds apprenticeships and training programs for Australian workers. If you're considering employer-sponsored migration, understanding this levy upfront is essential for budgeting.

What Is the SAF Levy?

The Skilling Australians Fund (SAF) levy was introduced in 2018 to offset the use of the employer-sponsored migration program by ensuring businesses contribute to local skills development. The levy is paid when:

• An employer nominates a worker for a Subclass 482 (TSS) visa

• An employer nominates a worker for a Subclass 494 visa

• An employer nominates a worker for a Subclass 186 ENS (Temporary Residence Transition stream)

How Much Is the SAF Levy?

The amount depends on your business size and the visa duration:

• Small business (annual turnover less than $10 million): $1,200 per year of visa duration

• Medium/large business (annual turnover $10 million or more): $1,800 per year of visa duration

The levy is calculated based on the total visa period approved and must be paid upfront as a lump sum when lodging the nomination.

SAF Levy Examples

• Small business, 482 visa (2 years): $1,200 × 2 = $2,400

• Large business, 482 visa (4 years): $1,800 × 4 = $7,200

• Large business, 186 ENS nomination: $1,800 × 2 = $3,600 (186 uses 2-year calculation)

• Small business, 494 visa (5 years): $1,200 × 5 = $6,000

Is the SAF Levy Refundable?

Yes — partially. If the visa is granted for a shorter period than you nominated for, you may receive a partial refund. For example, if you nominated for 4 years but the visa is only granted for 3 years, you'd receive a refund for the unused year.

However, if the nomination is refused, the SAF levy is generally not refunded. This is why getting the nomination right the first time is important.

Can Employers Pass the SAF Levy to Workers?

No. Employers are legally prohibited from recovering the SAF levy from sponsored workers, either directly or indirectly. This is a compliance obligation — passing it on (or asking the worker to contribute) can result in enforcement action and loss of sponsorship status.

Other Costs Employers Cannot Recover From Workers

• Visa application charges paid by the employer

• Migration agent or lawyer fees paid by the employer

• Nomination application fees

Workers can voluntarily pay their own visa application charges (as an applicant), but employers cannot require them to cover costs that are the employer's obligation.

Planning Your Sponsorship Budget

A rough per-nomination budget for a medium/large business sponsoring a worker on a 4-year 482:

• SBS application (one-off, valid 5 years): ~$420

• SAF levy: $7,200

• Nomination application: ~$330

• Visa application (paid by worker, typically): ~$3,035

• Migration agent fees (nomination + visa): ~$3,000–$6,000

• Approximate employer-side cost: $10,000–$14,000 per sponsored worker

Frequently Asked Questions

Q: Do I pay the SAF levy every time I renew a worker's visa?

A: Yes. Each new nomination for a renewal of the 482 visa requires a new SAF levy payment. This is an ongoing cost to factor into your workforce planning.

Q: Does the SAF levy apply to the 186 permanent visa?

A: Yes, for the Temporary Residence Transition (TRT) stream of the 186. The SAF levy for 186 nominations is calculated based on a 2-year period, regardless of the actual visa duration. The Direct Entry stream of 186 also requires a SAF levy payment.

Q: Is the SAF levy tax-deductible?

A: Generally yes — the SAF levy is considered a cost of doing business and is typically deductible as a business expense. However, confirm this with your accountant as tax treatment can vary.

Q: What if I'm a recruitment agency placing workers with client businesses — who pays?

A: The sponsoring employer (the business where the worker actually works) is responsible for the SAF levy, not the recruitment agency. If a recruitment agency is the sponsor, the agency pays the levy.