The new Skilling Australians Fund (SAF) levy is here
As from 12 August 2018, any employer who wishes to nominate overseas skilled workers for any of the following visas:
• TSS - Temporary Skill Shortage (subclass 482)
• ENS - Employer Nomination Scheme (subclass 186)
• RSMR - Regional Sponsored Migration Scheme (subclass 187)
Must pay the SAF levy with every nomination application.
How much does the employer require to pay for the SAF levy?
Small business (annual turnover of less than $10 million) would be required to pay for each nomination application:
AUD 1,200 per year for a Temporary visa (TSS) or
AUD 3,000 as a one-off payment for a Permanent visa (ENS/RSMS).
Large business with (annual turnover of more than $10 million) would be required to pay for each nomination application:
AUD 1,800 per year for a Temporary visa (TSS) or
AUD 5,000 as a one-off payment for a Permanent visa (ENS/RSMS).
SAF Payment schedule:
The SAF must be paid in full when submitting the nomination application.
The amount depends on the size of the sponsoring business and the proposed period of stay of the overseas worker in Australia. It is also worth mentioning that the SAF levy payment is tax deductible for the business.
Further Essential information you must know about the SAF levy
The employer can choose how many years to nominate an applicant – from one to four years. The SAF levy figure will be calculated according to the time selected.
The SAF levy must be paid by the EMPLOYER only - the overseas skilled workers should not pay this cost.
There are no exemptions for the SAF levy, except for nominating religious workers under the Labour Agreement streams of the TSS or ENS visas.
For all other nominations, who are party to a Labour Agreement, the SAF levy must be paid.
The SAF levy can be refunded in limited circumstances only.
Does the employer still needs to pay the training benchmark?
From 12 August 2018, the training benchmarks will no longer apply for ENS and RSMS visa nomination. It will only apply to nominations lodged before 12 August 2018.
For TSS visas, the sponsorship obligation regarding the training benchmarks will only apply for the 12 months period ending on or before 12 August 2018.
Should you have any questions about the new SAF levy, we'll be happy to advise.