SAF Levy Guide 2026: Costs, Rules & Refund Scenarios

What is the Skilling Australians Fund (SAF) Levy?

If you are an Australian employer and planning to sponsor an overseas worker for specific skilled visas, you are required to pay an upfront contribution known as the Skilling Australians Fund Levy.

Which Visas Require the SAF Levy?

You must pay the SAF Levy when lodging a nomination for the following employer-sponsored visas:

• Subclass 482 (Skills In Demand) visa
• Subclass 494 (Skilled Employer Sponsored Regional Provisional) visa
• Subclass 186 (Employer Nomination Scheme) visa

SAF Levy Costs for Subclass 482 Visa

For Skills in Demand (Subclass 482) visas, the levy is calculated per year of the visa duration and is based on your business’s annual turnover.

SAF Levy Costs for Subclass 186 and 494 Visas

For permanent (Subclass 186) and provisional regional (Subclass 494) visas, the levy is a one-off payment rather than an annual fee.

Important Note for Subclass 494 Visa Transfers: If a subclass 494 visa holder changes employers, the new sponsoring employer must pay a pro-rated levy based on the time left on the visa. The reduction is calculated as follows:

• 4 Years Remaining: 80% of the base amount
• 3 Years Remaining: 60% of the base amount
• 2 Years Remaining: 40% of the base amount
• 1 Year Remaining: 20% of the base amount

Crucial Rules for Employers

There are three very important rules the Department of Home Affairs strictly enforces:

1. The Employer Pays: The SAF levy must be paid in full by the nominating employer at the time the nomination is lodged.
2. It Cannot Be Passed On: Under no circumstances can this cost be transferred, deducted from wages, or otherwise recovered from the visa applicant.
3. It is Tax Deductible: Because it is a business expense, it is generally tax-deductible for the sponsoring business.

SAF Levy Refund Scenarios

In most cases, the it is non-refundable. However, the Department of Home Affairs will consider full or partial refunds on a case-by-case basis in the following specific scenarios:

• The worker never starts: If the visa is approved but the overseas worker decides not to travel to Australia or fails to commence employment.
• Health or character refusals: If the nomination is approved but the visa is refused because the applicant failed the health or character test.
• Early departure (482 and 494 only): If the worker leaves your business within the first 12 months, and their visa duration was longer than a year, you may be eligible for a partial refund of the unused years. (Note: This does not apply to 186 or 187 visas).
• Incorrect information: If you withdraw the nomination because of an honest mistake on the application (e.g., selecting the wrong occupation stream or putting the wrong turnover bracket).
• Concurrent sponsorship fails: If the nomination is withdrawn because the associated Standard Business Sponsorship application was refused or withdrawn.
• Pre-Labour Agreement withdrawal: If you are in the Labour Agreement stream and withdraw the nomination before the agreement is finalized.

Please note: Refunds are never automatic. You must submit a formal refund request with supporting evidence.

Are There Any SAF Levy Exemptions?

Yes. The SAF levy is not required if you are nominating an occupation as a Minister of Religion or Religious Assistant, provided they are being nominated under the Labour Agreement stream for any of the above visa subclasses.

FAQ’s

Related Articles