Skilling Australians Fund Levy: What Employers Pay for 482 Visa Sponsorship

The Skilling Australians Fund (SAF) levy is one of the most misunderstood costs in the 482 visa process. It is a mandatory, non-refundable training contribution paid by the employer every time they nominate a worker. Many small business owners learn about it only after they have committed to sponsoring someone — and some try to quietly pass the cost on to the worker they are sponsoring, which is a serious legal mistake.

Here is a plain-English explanation of what it is, what it costs, and what happens when it is mishandled.

What the SAF Levy Is

The SAF levy was introduced in 2018 alongside the TSS visa as a training fund contribution. The idea: every time an employer brings in an overseas worker, they contribute to a national fund that trains Australian workers in the same industries. The levy is paid to the Department of Home Affairs at the time of nomination and is forwarded to the Department of Employment for allocation to vocational training programs.

For the employer, it is simply a cost of doing business that comes with the decision to sponsor overseas talent.

How Much the SAF Levy Costs

The levy amount depends on two factors: the size of the business and the duration of the visa being granted.

The levy is paid upfront for the full duration of the visa at the time of nomination lodgement.

For a two-year visa at a small employer: $1,200 × 2 = $2,400 For a four-year visa at a large employer: $1,800 × 4 = $7,200

The levy applies per worker. If a business nominates five workers in the same year, it pays the levy five times.

Who Pays the SAF Levy

The employer pays it. This is a legal requirement under the Migration Act 1958.

The employer is prohibited by law from:

• Recovering the SAF levy from the worker through direct payment
• Deducting it from the worker's salary
• Entering any arrangement that has the practical effect of making the worker bear this cost

The same prohibition applies to the Standard Business Sponsorship fee ($420) and the nomination fee ($330). Only the Visa Application Charge ($3,210 per primary applicant) can be legally paid by either party — and even then, it should be clearly documented who is paying and why.

Breaching this prohibition is treated seriously. Civil penalties for an individual who violates this rule can reach $93,900 per breach. For a corporation, the penalty cap is $396,000 per breach. The Department of Home Affairs conducts unannounced site visits and audits of sponsored businesses.

Why the SAF Levy Is Non-Refundable

This surprises employers: the SAF levy is not returned if the nomination is refused.

A common scenario: the employer advertises the role, the candidate is found, the levy is paid as part of the nomination submission — and then the Department refuses the nomination because a detail in the Labour Market Testing evidence was incorrect. The $2,400 to $7,200 is gone.

This is the financial logic behind treating LMT compliance as seriously as the SAF levy cost itself. A single error in the 28-day advertising window — running the ad for 27 consecutive days instead of 28, or omitting the employer's name from the advertisement — can trigger a refusal that wastes the entire levy payment.

The SAF Levy on Visa Renewals

When a 482 visa is renewed or the worker transitions to a new nomination with the same or a different employer, the SAF levy is payable again for the new visa period.

Under the current Skills in Demand framework, visa durations are:

• Core Skills stream: up to four years
• Specialist Skills stream: up to four years

When the worker applies for a 186 permanent residency via the Temporary Residence Transition (TRT) stream, the SAF levy is not applicable — the 186 ENS has its own application charges but no separate SAF levy.

Offshore Workers and the SAF Levy Timing

The SAF levy is due at the time of nomination lodgement, not visa application lodgement. This means the employer commits the funds before the visa is actually applied for. It is an important cash flow consideration for smaller businesses — the $2,400 to $7,200 must be available before the formal nomination process begins.

If you are an overseas worker whose employer is hesitant about sponsorship, understanding and being able to explain the SAF levy timeline can help them plan. Many SME employers are not aware of this sequencing until they start the application, which can cause unexpected delays while they organise funds.

When Forum Reports of "Illegal Recovery" Should Be Taken Seriously

The r/AusVisa community regularly surfaces posts from workers whose employers are demanding they "pay back" the SAF levy or the nomination fee, sometimes by deducting it from initial pay periods or structuring salary arrangements that offset the cost. This is illegal regardless of how the arrangement is framed.

Workers in this situation should be aware that:

1. They are not legally required to contribute to these employer-specific costs
2. Reporting the arrangement to the Department of Home Affairs or the Fair Work Ombudsman is an option
3. Employers found to have made such arrangements face significant penalties, and the sponsorship approval itself can be cancelled — which affects every worker they currently sponsor

If you encounter this situation, document the arrangement in writing before raising it with any authority.

SAF Levy vs. Migration Agent Fees

One common point of confusion: migration agent professional fees ($3,000 to $8,000 for a full-service engagement) are separate from and in addition to the SAF levy. The SAF levy is a government charge; agent fees are a private professional service. Both are ultimately borne by the employer or worker according to their arrangement, but the agent fees have no legal restrictions on who pays them — unlike the SAF levy and government charges.

For a full breakdown of all costs involved in a 482 sponsorship — including a stage-by-stage payment timeline and a comparison of employer-mandatory vs. worker-optional costs — see the Australia TSS 482 Visa Guide.

See more Australia guides →