Reminder for Employers: The SAF Levy Cannot Be Passed to Subclass 186 Applicants

Australian businesses sponsoring skilled overseas workers through the Employer Nomination Scheme (ENS) (Subclass 186) visa must meet strict financial obligations. One of the most critical is paying the Skilling Australians Fund (SAF) training contribution charge. In a recent clarification from the Department of Home Affairs (DoHA), employers are reminded that the SAF levy must be paid by the nominating employer and cannot, under any circumstances, be passed on to the nominated employee.

The Legal Requirement: Employer to pay SAF Levy

Under Migration Regulation 5.19(2)(fa), employers are legally liable for paying the SAF training contribution charge. As the Department of Home Affairs clarified in January 2026 under the "paying for visa sponsorship" framework, forcing a visa applicant to cover this cost is exploitative and a direct breach of migration law. Employers that pass this levy on to applicants face severe civil and criminal penalties.

What About Other Recruitment and Visa Costs?

The Department also clarified how other costs associated with the ENS Subclass 186 program are treated:

The SAF levy is legally distinct from other recruitment costs and must always be paid directly by the employer.
In most cases, other costs connected with the Subclass 186 process, including nomination fees, Visa Application Charges (VAC), and legal representative fees, are generally not treated as a prohibited benefit under the paying for visa sponsorship framework.
However, passing on the nomination fee or the employer’s legal costs to the visa applicant may still create compliance risks. Even if it does not immediately trigger a penalty, it can raise concerns about whether the nominated position is genuine and may lead to refusal of the nomination.

A mistake regarding who pays which fee can result in visa refusals, sponsorship barring, and significant financial penalties. Employers must ensure they pay the SAF training contribution charge directly in all ENS SC 186 nominations.

Read our clients’ testimonials on Agape Henry Crux and Accredited Specialist in Immigration Law, Jason Ling.

How Can Agape Henry Crux Help You?

Our team of immigration lawyers at Agape Henry Crux can provide tailored, creative professional advice and visa strategy to give you the best chance of success in achieving your ENS Subclass 186 nomination and visa goals. The team works closely with two of our Accredited Specialists in Immigration Law who specialise in complex visa matters. We recommend booking a Migration Planning Session by calling 02 8310 5230 or emailing info@ahclawyers.com to arrange a time.

We speak fluent English and Mandarin. If this isn’t your language, we can also help you arrange an interpreter.

Our founder and principal lawyer, Jason Ling, is recognised in the 2026 edition of The Best Lawyers in Australia™ and the 2027 edition of The Best Lawyers in Australia™. Agape Henry Crux is named as Best Immigration Law Firm 2025 - Sydney by APAC Insider Awards and in the 2027 edition of The Best Law Firms™ - Australia.

This article/presentation (“publication”) does not deal extensively with important topics or changes in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you find this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances, please contact our office.

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