What is the Skilling Australians Fund (SAF) levy?

The SAF (Skilling Australians Fund) levy is a fee that is applicable to employers in Australia who sponsor foreign workers on certain visa types to work in Australia. The SAF levy was introduced on March 12, 2018, and it is designed to contribute to the training and development of the Australian workforce. Effectively, it is used to fund programs and initiatives that aim to train and develop the Australian workforce, and the levy amount depends on the size of the employer and the duration of the visa being sponsored. It is important for employers to be aware of their obligations to pay the SAF levy when sponsoring foreign workers to work in Australia.

What is the purpose of the SAF levy?

The SAF levy is aimed at encouraging employers to invest in training and development of the Australian workforce and reduce their reliance on foreign workers. The levy is used to fund various programs and initiatives that aim to upskill the local workforce and address skill shortages in Australia.

How much is the levy?

The SAF levy amount depends on the size of the employer and the duration of the visa being sponsored. As of April 2023, the SAF levy rates are as follows:

1. Large employers: For employers with an annual turnover of AUD 10 million or more, the SAF levy is AUD 1,800 per year for each TSS visa applicant and AUD 5,000 for each ENS and SESR visa applicant.
2. Small/Medium employers: For employers with an annual turnover of less than AUD 10 million, the SAF levy is AUD 1,800 per year for each TSS visa applicant and AUD 3,000 for each ENS and SERS visa applicant).

How often do I pay the levy and how long is it valid for?

The SAF levy is payable upfront at the time of submitting the visa nomination application, and it must be paid for the entire duration of the visa being sponsored. For TSS visa holders, the SAF levy is payable for each year of the visa duration, up to a maximum of 4 years. For ENS and SESR visa holders, the SAF levy is payable as a one-time lump sum.

Are all employers required to contribute to the SAF levy?

No, not all employers in Australia are required to contribute to the Skilling Australians Fund (SAF) levy. The SAF levy is a contribution that certain employers must make when they nominate skilled workers for the Temporary Skill Shortage (TSS) visa, the Employer Nomination Scheme (ENS) visa, or the Skilled Employer Sponsored Regional (SERS) visa.

The following employers are required to pay the SAF levy when they nominate skilled workers for certain visas:

1. Temporary Skill Shortage (TSS) visa (subclass 482) (excluding Labour Agreement stream) : his visa allows employers to sponsor skilled workers from overseas to work in Australia temporarily.
2. Employer Nomination Scheme (ENS) visa (subclass 186) (direct entry stream only): This visa allows employers to sponsor skilled workers from overseas for permanent residency in Australia.
3. Regional Sponsored Migration Scheme (RSMS) visa (subclass 187): This visa is no longer available for new applications.

Which employers are exempt?

There are some exemptions and concessions available for certain employers, such as those who are sponsoring certain types of workers, ia the SAF levy does not apply to the occupations of 272211 Minister of Religion and 451816 Religious Assistant where the nomination is under a Labour Agreement stream.