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  • Jenny Murphy MARN 0852535

Skilling Australia Fund Levy (SAF): Impact on Sponsoring Overseas Workers

Australia has always been an attractive destination for highly skilled foreign workers seeking employment opportunities. However, in recent years, the Australian government has introduced several measures to encourage local employment and reduce the reliance on overseas workers. One of these measures is the Skilling Australia Fund (SAF) Levy.

What is the Skilling Australia Fund Levy?

The SAF levy is a contribution that Australian employers must make when sponsoring overseas workers under the Temporary Skill Shortage (TSS) visa program. The purpose of the levy is to contribute to the training and development of the Australian workforce by providing additional funding for vocational education and training (VET) programs.

The SAF levy was introduced in March 2018, replacing the previous Training Benchmarks scheme. The levy is payable at the time of lodging a nomination application for a TSS visa, and the amount varies depending on the size of the employer and the duration of the visa.

Impact on Companies

The introduction of the SAF levy has had a significant impact on Australian employers who sponsor overseas workers. Many companies have found the additional expense of the levy to be a significant burden on their recruitment budgets, particularly for smaller businesses with limited resources.

The SAF levy can be a significant expense, depending on the employer's size and the visa duration.

The SAF levy is only refundable in very limited circumstances. Therefore, the levy may not be refunded if a nomination is refused. It is important to seek advice to avoid costly errors.

For further assistance in how SCA Connect can assist your business in sponsoring workers, speak to one of our experienced Registered Migration Agents today.

Disclaimer: The information provided herein is of a general nature only and does not constitute immigration advice. For more detailed and case-specific information or advice, please contact SCA Connect.

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