What is the SAF

The Migration (Skilling Australians Fund) Charges Act 2018 will impose a nomination contribution charge (SAF levy) on employers nominating overseas skilled workers for the following visas:

  • Temporary Skill Shortage (TSS) Subclass 482
  • Employer Nomination Scheme (ENS) Subclass 186
  • Regional Sponsored Migration Scheme (RSMS) Subclass 187

The SAF levy has been introduced to contribute to the broader skills development of Australians by supporting Australian apprentices and trainees across a range of key priority areas with a view to addressing the skills shortages across Australia. The SAF levy will replace the training benchmarks. The fund is managed by the Department of Education and Training (DET).

 

How will the SAF levy affect sponsoring employers

The SAF levy amount will be payable in full when a temporary or permanent nomination application is lodged by the sponsoring employer. The amount payable will depend on the type of visa, the annual turnover of the sponsoring business and the period of stay of the overseas worker in Australia. SAF levy payments will be tax deductible for employers.

Sponsoring employers should note that the SAF levy must not be passed to visa applicants.

For small businesses (annual turnover of less than $10 million):

  • Nomination for a temporary (TSS) visa will attract a SAF levy of $1,200 per year of stay (or part thereof)
  • Nomination for a permanent (ENS or RSMS) visa will attract a one-off SAF levy of $3,000

For other businesses (annual turnover of $10 million or more):

  • Nomination for a temporary (TSS) visa will attract a SAF levy of $1,800 per year of stay (or part thereof)
  • Nomination for a permanent (ENS or RSMS) visa will attract a one-off SAF levy of $5,000

 

Exemption

Only nominations of religious workers under a Labour Agreement stream of TSS or ENS visas can be exempt from the SAF levy. Other parties to Labour Agreements (and standard sponsors) must pay the SAF levy.

It is worth noting that the SAF levy will also be payable when lodging a TSS nomination for a change of employer or occupation.

 

Refund of the SAF levy

Requests for SAF levy refunds will only apply in specific limited circumstances, where:

  • The TSS visa holder does not commence employment with the employer
  • The nomination application is approved, but the visa application is refused on health or character grounds
  • The TSS visa holder ceases work with their employer within the first 12 months – refund will be calculated based on the balance of full years remaining on the visa
  • The nomination fee is refunded

 

When will the SAF levy commence

Sponsors should continue to meet their training obligations until 12 August 2018, when the SAF levy will be implemented.