The Skilling Australians Fund (SAF) levy is a mandatory payment made by employers when they nominate a worker for an employer-sponsored visa in Australia — specifically the Skills in Demand visa (subclass 482), the Skilled Employer Sponsored Regional (Provisional) visa (subclass 494), and the Employer Nomination Scheme (subclass 186). The levy is paid by the sponsoring employer — it cannot be recovered from or passed on to the sponsored worker. The SAF levy rate differs between small businesses (annual turnover under $10 million) and large businesses (annual turnover $10 million or more). For the subclass 482, the levy is paid upfront for the entire visa period at nomination; for the subclass 186 and 494, a single payment is made at nomination. The levy funds the Skilling Australians Fund, which is used by states and territories to fund apprenticeships and traineeships for Australian workers. This page explains the levy structure, payment timing, the prohibition on cost recovery, and the refund policy.

For current SAF levy rates (which are subject to annual indexation), payment instructions, and the refund policy, refer to the DHA cost of sponsoring page.

• Migration Act 1958, s 140GBA — the framework for the Skilling Australians Fund training contribution (SAF levy); sets out the obligation to pay the training contribution and the circumstances in which it applies to sponsor nominations
• Skilling Australians Fund Act 2018 — establishes the Skilling Australians Fund as a special account; sets the rates and framework for levy payments from sponsors; provides for the distribution of SAF levy revenue to states and territories for apprenticeship and traineeship programs
• Migration Regulations 1994, regulation 2.79(1)(ga) — the sponsorship obligation not to recover the training contribution from the sponsored worker; a sponsor who recovers the levy from the worker is in breach of their sponsorship obligations and may face civil penalties
• DHA: Cost of sponsoring — immi.homeaffairs.gov.au/cost-of-sponsoring

Which visas attract the SAF levy

The SAF levy applies to the following employer-sponsored visa nominations:

• Subclass 482 (Skills in Demand) — Core Skills stream, Specialist Skills stream, and Labour Agreement stream nominations; the levy applies to each nomination for each year of the proposed visa period
• Subclass 494 (Skilled Employer Sponsored Regional (Provisional)) — a single payment is made at nomination
• Subclass 186 (Employer Nomination Scheme) — Direct Entry and Temporary Residence Transition (TRT) stream nominations; a single payment is made at nomination

Levy rates — small vs large business

The SAF levy rate depends on the annual turnover of the nominating business:

• Small business: an employer with an annual turnover of less than $10 million AUD pays a lower levy rate per year per nominated worker under the subclass 482; a lower single payment rate for the subclass 186 and 494
• Large business: an employer with an annual turnover of $10 million AUD or more pays a higher levy rate per year per nominated worker under the 482; a higher single payment rate for the 186 and 494

The levy rates are indexed annually and are set out in the Skilling Australians Fund Act 2018. For the current rates, refer to the DHA cost of sponsoring page — the actual dollar amounts are not reproduced here as they are subject to change.

Payment timing — 482 vs 186/494

The SAF levy is paid at different times depending on the visa type:

• Subclass 482 (Skills in Demand): the levy is paid upfront at nomination lodgement for the full visa period; if the proposed visa is for 2 years, the employer pays 2 × annual rate; if for 4 years, 4 × annual rate; the levy is calculated based on the length of the proposed visa, not the actual visa period granted
• Subclass 186 (ENS) and subclass 494: a single payment is made at the time the nomination application is lodged — there is no annual instalment; the single payment rate differs from the annual rate applicable to the 482

Prohibition on recovering the levy from sponsored workers

One of the most important features of the SAF levy is the prohibition on cost recovery from sponsored workers:

• The Migration Regulations (regulation 2.79(1)(ga)) explicitly prohibit a sponsor from recovering the SAF levy from the sponsored worker — directly (charging the worker for the levy) or indirectly (deducting it from the worker's salary or requiring the worker to pay it as a condition of employment)
• A sponsor who recovers the levy from the sponsored worker is in breach of their sponsorship obligations and may face civil penalties under the Migration Act
• This prohibition reflects the policy rationale of the SAF levy — it is a cost of business for employers who benefit from temporary overseas skilled labour, not a cost borne by the worker

SAF refund policy

In some circumstances, a refund of the SAF levy may be available:

• If a nomination application is withdrawn before it is decided, the SAF levy paid with the nomination may be eligible for a full or partial refund — DHA's refund policy applies
• If the sponsoring employer's business ceases operation or the visa is cancelled before the full term, some refund may be available; refer to the DHA refund page for current refund conditions
• The SAF levy is not refunded because the sponsored worker leaves the employer or because the worker's visa is cancelled after grant

What the SAF funds

The revenue from the SAF levy is paid into the Skilling Australians Fund, a special account administered under the Skilling Australians Fund Act 2018. The Fund is distributed to state and territory governments, which use it to fund:

• Apprenticeships and traineeships for Australian citizens and permanent residents
• Industry training programs in sectors where skills shortages exist

The policy rationale is that employers who fill skill shortages with temporary overseas workers should contribute to training the Australian domestic workforce to reduce dependence on overseas labour over time.

The SAF levy is a significant cost factor for employers using the Skills in Demand 482 visa, particularly for large businesses nominating workers for longer visa periods — at 4 years, the upfront levy obligation is substantial. For small businesses, the lower rate reduces but does not eliminate the financial impact. The prohibition on passing the levy to workers is strictly enforced and is a common compliance issue — practitioners should advise sponsoring employers clearly on this restriction, particularly where employment contracts may include broad "cost sharing" clauses. The levy has been subject to indexation since its introduction in 2018, so the actual dollar amounts are not reproduced here — employers should consult the DHA cost of sponsoring page at nomination time to confirm current rates. For current levy rates, the refund policy, and payment procedures, refer to the DHA cost of sponsoring page.