What Does SAF Levy Actually Means For Employer?
SAF Levy In Recent Temporary Skill Shortage Visa Changes
Are you one of the visa applicants who is under employer sponsored visa? Have you ever heard about SAF Levy? Do you know what SAF Levy actually means? Here’s what you need to know about SAF Levy.
1. What Is SAF Levy?
SAF levy or Skilling Australians Fund levy is a fund for employers to be able to contribute too and clearly demonstrate they support training opportunities for Australians.
The levy is capped and will be payable in full at the time the worker is nominated.
The payable amount will depend on the size of the business. The levy will not apply to dependents of TSS visa applicants or to existing 457 visa holders. The SAF levy will replace the previous mandatory training benchmarks as per 12th of August 2018.
2. What Is The Aim Of SAF Levy?
The SAF levy has been implemented to show that the Commonwealth government of Australia supports the Australians job seekers by providing them with a training or skills development program.
The SAF will support up to 300,000 apprenticeships, traineeships, and other employment training opportunities for Australians.
This is to ensure that Australian citizens are given first priority when applying for skilled occupations, limiting the need to seek overseas workers and is designed to address falling apprenticeship numbers across the country.
3. What Are The New Changes Before And After The SAF Levy Applied?
Previously, during the Training Benchmark regime, employer sponsors were required to choose whether they are willing to contribute 2% of annual payroll to an industry operated related to their business or services. On the other hand, they could spend 1% of annual payroll in the provision of training to their Australian employees.
The new SAF levy is aimed at an employer who hires foreign skilled labour to fill certain positions in which they are unable to find within Australia, as they are also required to invest in skill development and training Australian employees in order to reduce Australian skills shortages.
4. What Are The Impacts Of The Changes To The Current And New Visa Holders?
The latest update on 28 February 2019 by Department of Home affairs stated that company will take over their employee who currently has held subclass 457/482 visa, they only subject to pay one year of Skilling Australian Fund Levy, it will be implemented no matter how long their employee of Temporary Skill Shortage (482) holder leaving from work.
The statement is made to ensure that the Temporary Skill Shortage (482) visa holders will not be imposed any sanctions because they were working in contravention to their TSS visa, where their visa has been extended beyond the period after the levy was paid for. In addition, if the Temporary Skill Shortage (482) visa holders who have a nomination transferred from an employer and they work at previous nomination longer than the period after the levy was paid for, they will not be considered breaching the visa conditions.
The regulation may change over time and it will affect the visa process. The situation might build your concern, while ONE derland Consulting will delightedly help you to free you from your concern. Click here and you will be connected right to us.
5. Who Has To Pay For The SAF Levy?
Below are those who are obliged to pay saf:
- An employer who sponsors an overseas worker on the TSS (subclass 482) visa.
- An employer who nominates an overseas worker on the ENS (Subclass 189) visa under the Temporary Residence Transition (TRT) stream, Direct Entry stream (DE) and the Labour Agreement stream (LA).
- An employer who nominates an overseas worker on the RSMS (subclass 187) visa under the Temporary Residence Transition (TRT) stream and Direct Entry stream (DE).
6. How Much Does The SAF Levy Cost An Employer?
The levy to be paid by the sponsor depends on the number of employees being sponsored and the employer’s annual turnover in the previous 12 months.
a. For the TSS (Subclass 482) visa the levy to be paid is as follows:
- Annual Turnover less than $10m = $1,200 each year, payable at the time of nomination lodged.
- Turnover greater than $10m = $1,800 each year, payable at the time of nomination lodged.
b. For Permanent residency (subclasses 186 and 187) visas the levy to be paid is as follows:
- Turnover less than $10m = $3,000 one-time fee payable at the time of nomination lodged.
- Turnover greater than $10m = $5,000 one-time fee payable at the time of nomination lodged.
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