Written by Immigrad · Registered Migration Agent · MARN 1805710 · Last updated July 2026
The SAF levy — formally the Skilling Australians Fund levy, or the nomination training contribution charge — is the single largest government cost most Australian employers face when sponsoring an overseas worker. It is charged per nomination, payable in full when you lodge, and it cannot legally be passed on to the worker. Get the calculation wrong and you either underpay (and stall your nomination) or overpay by thousands. This guide explains exactly how the levy is worked out, with worked examples for the situations employers actually encounter. All figures are current as at July 2026.
What is the SAF levy?
The Skilling Australians Fund levy is a charge the Department of Home Affairs applies to employers who nominate an overseas worker under Australia’s temporary and permanent employer-sponsored visa programs. The policy logic is straightforward: if a business brings in skilled labour from overseas, it contributes to training Australians in the same skill areas. Revenue from the levy supports skills and training initiatives administered through the Department of Employment and Workplace Relations.
Three points matter more than any others:
- The levy is calculated and paid at the nomination stage, in full, up front — not in annual instalments.
- You must not pass the levy on to the visa applicant or their family. Doing so is a serious sponsorship breach.
- Levy payments are tax deductible as a business expense.
The levy replaced the old training benchmark obligations, so there is no option to spend on training instead. It applies to labour agreement sponsors too.
How much is the SAF levy in 2026?
The amount depends on two things only: the annual turnover of the sponsoring business, and — for temporary visas — the nomination period you select.
| Business size | Subclass 482 (Skills in Demand) | Subclass 186 (ENS), 494 (SESR) and RSMS |
|---|---|---|
| Small business — annual turnover under AUD 10 million | AUD 1,200 per year, or part thereof | AUD 3,000 one-off |
| Other business — annual turnover of AUD 10 million or more | AUD 1,800 per year, or part thereof | AUD 5,000 one-off |
What “per year or part thereof” actually means
The online nomination form only lets you select a nomination period of 1, 2, 3 or 4 years. There is no pro-rata option and no half-years. If you need a worker for 18 months, you select two years and pay for two years. The Skills in Demand visa allows a stay of up to four years (up to five for Hong Kong passport holders), so four years is the practical ceiling for a single 482 nomination.
The other Department charges you will pay alongside it
The levy is not the whole employer bill. As at July 2026 the Department also charges AUD 420 to become an approved sponsor under the Skills in Demand program, AUD 330 to lodge a 482 nomination, and AUD 540 to lodge a subclass 186 nomination. Like the levy, these are employer costs that cannot be recovered from the worker, and they are not refunded if an application is unsuccessful. Our sponsorship cost calculator puts the whole picture together in one place.
SAF levy worked examples
The rules read simply enough. The confusion nearly always comes from a specific fact pattern. Here are the ones we are asked about most.
Example 1 — Small business, four-year 482 nomination
A Sydney engineering consultancy with annual turnover of AUD 4 million nominates a mechanical engineer for four years under the Core Skills stream.
Levy: 4 × AUD 1,200 = AUD 4,800. Add the AUD 420 sponsorship application and AUD 330 nomination fee and the employer-side Department charges come to AUD 5,550.
Example 2 — Larger business, four-year 482 nomination
A logistics group with turnover of AUD 18 million nominates the same role for four years.
Levy: 4 × AUD 1,800 = AUD 7,200. Identical role, identical period — AUD 2,400 more, purely because of turnover. This is the single biggest swing factor in sponsorship budgeting, and it is worth confirming which side of the AUD 10 million line your business sits on before you commit to a nomination period.
Example 3 — Short-term need, small business
A regional café group with turnover of AUD 2 million needs a chef for roughly 18 months.
Because there is no pro-rata option, the employer selects a two-year nomination. Levy: 2 × AUD 1,200 = AUD 2,400. One year would cost AUD 1,200, but extending requires a fresh nomination and a fresh levy — so two years is usually cheaper than paying twice.
Example 4 — Permanent residency nomination (subclass 186)
The same engineering consultancy from Example 1 later nominates that engineer for permanent residency through the Employer Nomination Scheme.
Levy: AUD 3,000, one-off, regardless of how long the employment relationship has run. A business with turnover over AUD 10 million would pay AUD 5,000. Note this is a separate levy — the AUD 4,800 already paid on the 482 nomination is not credited against it.
Example 5 — The full 482 to 186 journey
Running Examples 1 and 4 together, a small business that takes a worker from a four-year subclass 482 visa through to a subclass 186 permanent visa pays AUD 7,800 in levy alone (AUD 4,800 + AUD 3,000). For a business over the turnover threshold, the same pathway costs AUD 12,200 (AUD 7,200 + AUD 5,000).
Example 6 — Taking on a worker who already holds a 482
A worker with two years left on their 482 wants to move to a new employer. The new employer must lodge its own nomination, and the levy is payable again — the previous employer’s payment does not transfer.
If the new sponsor is a small business selecting a two-year nomination, the levy is 2 × AUD 1,200 = AUD 2,400. The same applies where an existing sponsor lodges a nomination to change the worker’s occupation.
Example 7 — Regional sponsorship under subclass 494
A regional agribusiness with turnover of AUD 6 million nominates a worker under the subclass 494 Skilled Employer Sponsored Regional visa.
Levy: AUD 3,000 one-off — the 494 is charged on the same basis as permanent nominations, not per year. There is a concession where the nominee already holds a 494 visa: the levy is reduced to a percentage of the base amount depending on years remaining — 80 per cent with four years left, 60 per cent with three, 40 per cent with two, and 20 per cent with one. So a small business nominating an existing 494 holder with three years remaining pays 60 per cent of AUD 3,000, or AUD 1,800.
Who is exempt from the SAF levy?
Almost nobody. The only exemption is for ministers of religion and religious assistants nominated under the Labour Agreement streams of the 482 or 186 programs. There is no exemption for small businesses, start-ups, not-for-profits, regional employers, or businesses nominating a worker they have already trained. If a recruiter or adviser tells you your business is exempt, ask them to point to the provision.
Can you get a SAF levy refund?
Refunds exist, but the grounds are narrow. Broadly, the Department may refund the levy where:
- The nomination is withdrawn before any decision is made — in which case the nomination fee may also be refunded.
- The nomination and visa are approved, but the worker never arrives or never commences employment.
- The nomination is approved but the visa is refused on health or character grounds.
- The employer withdraws because incorrect information (turnover or employment period) was used to calculate the levy.
- A 482 or 494 visa holder leaves the sponsoring employer within the first 12 months, where the nomination period was longer than 12 months. Refunds here cover only unused full years. This does not extend to 186 or RSMS holders who leave within 12 months.
- Certain labour agreement stream withdrawals, including where an occupation ceiling has been reached or the wrong stream or occupation was specified.
What is not refundable: a nomination that is refused on its merits, a business that changes its mind after approval, or a worker who resigns after the first 12 months. Budget on the assumption that the levy is spent once it is paid.
Three mistakes that cost employers money
Misreporting turnover. Turnover is assessed for the sponsoring entity, and group structures complicate it. Understating turnover to land under the AUD 10 million threshold is a compliance risk, not a saving.
Choosing the nomination period on gut feel. A one-year nomination looks cheap until you pay a second levy to extend. Map the role to the worker’s realistic pathway before you select.
Recovering the cost from the worker. Deducting the levy from salary, requiring a repayment agreement, or structuring a “training bond” that recovers it are all treated as prohibited cost recovery. Penalties and sponsorship bars can follow.
Our complete guide to sponsoring an employee in Australia walks through where the levy sits in the wider process, and the Employer Sponsorship Readiness Checklist covers what to have in place before you lodge.
SAF levy FAQ
Is the SAF levy paid per worker or per business?
Per nomination — so effectively per worker, per nomination. Sponsoring three workers means paying the levy three times. Approval as a sponsor (the AUD 420 charge) is a separate, one-off business-level fee.
Can the employee pay the SAF levy?
No. The levy, the sponsorship application fee and the nomination fee are all employer costs that cannot be recovered from the visa applicant or their family members, directly or indirectly.
Is the SAF levy tax deductible?
The Department states that levy payments are tax deductible. How that applies to your specific circumstances is a question for your accountant.
Do I pay the levy again if my employee changes occupation?
Yes. A new nomination is required whenever the occupation changes or the worker moves to a new sponsor, and each new nomination attracts the levy afresh.
Does the SAF levy change each year?
The levy amounts have been stable, unlike skilled visa income thresholds, which are indexed annually — the current indexation took effect on 1 July 2026. Always confirm the levy figure at the time you lodge, because the online nomination form calculates the payable amount from the information you enter.
Getting the numbers right before you lodge
This article is general information and does not take account of your circumstances. Sponsorship costs turn on details — group turnover, the right nomination period, whether a 482, 494 or 186 nomination is the sensible starting point — and those details are where money is won or lost. Complex cases warrant personal advice.
Immigrad is a MARA-registered Australian migration practice (MARN 1805710) working with employers across Australia. If you would like your sponsorship costs modelled properly before you commit, get in touch for a consultation.