Implementation of the Skilling Australians Fund levy – May 2018
Following the April 2017 announcement of significant changes to the skilled migration program, the headlines were dominated by the abolition of the Subclass 457 visa. However, the lesser-known Skilling Australia Fund levy is soon to come into effect and will affect businesses looking to sponsor non-Australian employees.
The Australian government predicts that the SAF levy will raise $1.2 billion over four years, which will be put towards improving vocational education and training.
The SAF levy will be payable by businesses looking to sponsor an employee for the following visa categories:
- Temporary Skills Shortage (TSS) (Subclass 482)
- Employer Nomination Scheme (Subclass 186)
- Regional Sponsored Migration Scheme (Subclass 187)
The levy is in addition to all other current charges involved with the nomination and visa application process. The amount payable depends on the visa being applied for and the business’ turnover.
|Visa Subclass||Business annual turnover||SAF Levy Payable per year paid at nomination application|
|Subclass 482||Less than $10 million||$1,200 per year of sponsorship|
|Subclass 482||More than $10 million||$1,800 per year of sponsorship|
|Subclass 186 & 187||Less than $10 million||One-off payment of $3,000|
|Subclass 186 & 187||More than $10 million||One-off payment of $5,000|
The Bill to implement the SAF levy passed the House of Representatives in February and recently passed the Senate on 8 May. The date on which the SAF levy will come into effect remains subject to Royal Assent and publication. This means that while it is not currently payable, businesses can expect the additional levy in the near future.