Skilling Australians Fund (SAF) Levy
What is the SAF Levy?
The Skilling Australians Fund (SAF) levy is a mandatory payment that employers must make when nominating workers under certain visa programs. This levy supports skills development for Australians and is managed by the Department of Employment and Workplace Relations (DEWR), while the Department of Home Affairs calculates the levy amount. The levy must be paid in full when lodging a nomination application, and employers are not allowed to pass this cost onto the visa applicant.
Who Does the SAF Levy Affect?
The SAF levy applies to nomination applications for:
- Temporary Skill Shortage (TSS) visa (subclass 482)
- Employer Nomination Scheme (subclass 186)
- Regional Sponsored Migration Scheme (subclass 187)
Background
The Migration Amendment (Skilling Australians Fund) Bill was passed on 12th August 2018. This bill imposes a training contribution charge on employers sponsoring workers under both temporary and permanent employer-sponsored migration programs. The levy replaced previous training benchmarks for employers sponsoring workers on 457, ENS, and RSMS visas as of March 2018 and now applies to the TSS visa.
Levy Amounts
The SAF levy amount depends on the size of the business and the length of the proposed employment period:
Business Size | Visa Type | Levy Amount |
---|---|---|
Small Businesses (Annual turnover less than $10 million) | TSS visa | AUD 1,200 per year or part thereof |
ENS/RSMS visas | AUD 3,000 one-off | |
Other Businesses (Annual turnover of $10 million or more) | TSS visa | AUD 1,800 per year or part thereof |
ENS/RSMS visas | AUD 5,000 one-off |
Example: A business with an annual turnover of more than AUD 10 million nominating a TSS worker for four years would pay a levy of AUD 7,200 (4 years x AUD 1,800).
Levy for SESR Nominations
If the nominee already holds a Skilled Employer Sponsored Regional (SESR) visa, the SAF levy is reduced based on the remaining years on the visa.
Important Notes
- The SAF levy must be paid at the time of submitting the nomination application.
- The levy is tax-deductible.
- Sponsors in labor agreements must also pay the levy, except for ministers of religion and religious assistants under the Labour Agreement streams of the TSS or ENS visas.
Refunds of the SAF Levy
Refunds for the SAF levy are generally not available, but exceptions exist in certain situations:
- Sponsorship Application Refused: Refunds may be granted if the employer’s sponsorship application is refused.
- Visa Refusal on Certain Grounds: If the employee’s visa application is refused on specific grounds, the SAF levy may be refunded.
- Failure to Commence Employment: If the nominated employee does not start work with the sponsor, the SAF levy may be refunded.
- Employment Cessation: If the employee leaves within the first year, a partial refund of the SAF levy is possible.
Refund Examples
- Incorrect SAF Levy Payment: If incorrect information leads to an overpayment of the SAF levy, the nomination must be withdrawn, and a refund may be issued.
- Department Mistake: If a mistake by the Department requires a new nomination, a refund may be granted.
- Labor Agreement Withdrawal: If a labor agreement is not entered into and the nomination is withdrawn before a decision, a refund may be granted.
Ineligible Refund Requests: Refunds are not available if:
- The nomination application is refused.
- The application is withdrawn due to a change of mind or because the criteria are not met.
- The application is a duplicate.
- The nominee is granted a different type of visa (e.g., permanent residency) after the nomination is lodged.
Conclusion
The SAF levy is a critical component of employer-sponsored migration programs, designed to fund skills development in Australia. Understanding the rules and potential refund scenarios is important for employers navigating these processes.