Skilling Australia Fund Levy Comes Into Effect

expat network

Skilling Australia Fund Levy Comes Into Effect

On 12 August the Skilling Australia Fund levy commenced. The SAF levy is a levy payable by employers nominating overseas skilled workers for Temporary Skill Shortage (TSS) (subclass 482), Employer Nomination Scheme (ENS) (subclass 186) and Regional Sponsored Migration Scheme (RSMS) (subclass 187).

The SAF levy replaces the Training Benchmarks, which required visa sponsors to show that they had spent at least 1% of their payroll on training local staff over the last three years. The levy ensures that employers who sponsor temporary and permanent overseas skilled workers contribute to skills development of Australians. The fund will be used to create apprenticeships, traineeships and other forms of employment training.

The SAF levy is payable in full when lodging a nomination application and cannot be passed on to the foreign skilled worker. The amount depends on the size of the sponsoring business and the proposed period of stay of the overseas worker in Australia. SAF levy payments are tax deductible..

Business size	TSS visa	ENS / RSMS visas
Small (annual turnover less than $10 million)	AUD1200 per year or part thereof	AUD3000 one-off
Other business (annual turnover of $10 million or more)	AUD1800 per year or part thereof	AUD5000 one-off

Refunds of the SAF levy are available in the following circumstances:

The sponsorship and visa applications are approved, but the overseas skilled worker does not arrive/commence employment with the employer.
The employer’s sponsorship and nomination application for the overseas skilled worker is approved, but the associated visa application is refused on health or character grounds.
A TSS visa holder leaves the sponsoring employer within the first 12 months of employment where the visa period was for more than 12 months. Refunds will only be available in this scenario for unused full years of the SAF levy. This does not apply to ENS or RSMS holders who leave their employer within the first 12 months of employment.
The nomination fee is refunded (for example where a concurrent sponsor application is refused).

Moving Abroad Checklist

Initial Considerations

Will your partner be travelling with you?

If so, what will they be giving up in your present home and will they be able to continue with their career in your new home? You will need to check whether a separate visa is required for your partner to work or if your visa gives that right. If they are unable to work you will need to decide on the effect on your finances and what alternatives are available to give a fulfilling life (home business, training, voluntary work).

Are you taking family with you?

Moving with family raises many exciting opportunities, but also can create challenges. The HSBC Expat Explorer survey indicates that expat kids can take six months to settle in to their new country (see article). Getting young or even older children to prepare to move and leave their friends and family behind can be a challenge and should be thought through.

The options for education is another area that needs to be thought through.

Moving your child to a new country with a different education system can be a great opportunity to broaden their experience, but if they are close to key exams the timing can make this inadvisable. If you do take your family with you, it is important to decide between joining the local school system or choosing an international school.

Where will you be living?

Whether you will be living in a house or apartment, furnished or unfurnished, these decisions will affect what you need to take with you. The time you are planning to live overseas will also affect whether you should leave your property at home empty, rent it out or sell it. See the article Sell, Store or Ship.