The Skilling Australians Fund (SAF) levy is paid by employers who sponsor skilled workers from overseas.
The levy helps ensure businesses that benefit from skilled migration also contribute to skills development for Australians. The SAF levy is collected by the Department of Home Affairs.
From 1 July 2018 to 30 June 2022, the levy supported the National Partnership on the Skilling Australians Fund – an agreement between the Australian Government and six State and Territory governments to deliver skills, training and apprenticeships projects.
Since the cessation of the national partnership, the Australian Government has partnered with states and territories to deliver over $1.5 billion funding for 500,000 Fee-Free TAFE and vocational education and training (VET) places across Australia over 2023 to 2026.
In January 2024 a landmark National Skills Agreement (NSA) with States and Territories commenced to boost investment in the Australian VET system. Under the Agreement, the Government will provide up to $12.6 billion over 5 years.
The value of the NSA and additional investments in initiatives such as Fee-Free TAFE far exceed revenue collected from the SAF levy. However, the levy continues to contribute to the Government's capacity to invest in skills and training.