Skilling Australia Fund Levy (SAF) Introduced

The long awaited SAF will be implemented on 12^th August 2018. The SAF applies to nominations made on or after this date. It applies to 457 (nomination transfers), Temporary Skill Shortage (TSS) including Labour Hire Agreements, Employer Nomination ENS and RSMS nominations. For TSS nominations, the base amount for organisations with less than $10 million annual turnover is $1,200, and over $10m annual turnover $1,800. For ENS/RSMS, the base amount for organisations with less than $10 million annual turnover is $3,000, and over $10m annual turnover $5,000 one off fees. The only occupation exemptions are for Ministers of Religion.

Summary of Charges:

Refunds

Refunds will be available in certain circumstances:

• the nomination is withdrawn before a decision is made and the reason for the withdrawal was that the information used to calculate the SAF levy was incorrect
• the nomination is for a Subclass 482 occupation and the company SBS application was withdrawn or refused
• the nomination is for a Subclass 482 occupation in the labour agreement (LA) stream and is withdrawn before entering into the work agreement 
• the application is for a Subclass 482 visa, where the visa is refused under sections character or the applicant does not meet certain health criteria.
• or where the visa applicant fails to commence employment in the position associated with the nominated occupation

A new sub-regulation has been introduced to allow that if:

• the period of stay for a visa holder is more than one year, and
• that person ceases to be employed by the nominator or an associated entity of the nominator within one year after commencing employment, and 
• the Minister receives a written request for a refund of the nomination training contribution charge, or it is reasonable to disregard that the request is not made in writing, then

the Minister may refund the paid nomination training contribution charge, less the amount of the charge that would have been payable, if the proposed stay was for one year.

Sponsorship Training Obligations:

Now, more than ever employers need to be strategic in visa sponsorships, as the above levies are required to be paid by the nominator and not recovered from the visa applicants. The charge replaces requirements requiring sponsors under the temporary sponsored work visa programs (457), or employers nominating a worker for the Direct Entry stream of the ENS (Subclass 186) visas to meet the previous training benchmarks. For any ENS lodged before 12^th Aug 2018, the training obligation still applies.

Again, reminder employers need to be aware the obligations have been amended to include the nomination training contribution charge as a cost that cannot be recovered or transferred to another person e.g. the nominee.  

For more information, contact us