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The Importance of SAF Levy

Crystal Migration Stand: B905

If your business is sponsoring overseas workers under Australia’s employer-sponsored visa program, you must take care to provide accurate and truthful information in every nomination.

A recent case involving a company we’ll refer to as WorkPro Solutions Pty Ltd shows how serious the consequences can be if you mislead the Department – even by something as simple as declaring the wrong annual turnover.

The Case: Underreporting Turnover to Save on SAF Levy

Between 2021 and 2024, WorkPro Solutions lodged over 170 Subclass 482 nominations. In every one of these applications, the company declared its annual turnover as $5.4 million.

However, during a routine compliance audit by the Australian Border Force (ABF), the company’s Business Activity Statements (BAS) showed a much higher turnover, well over $10 million annually, and in one year up to $35 million.

This misreporting had real financial consequences. The company was charged the lower Skilling Australians Fund (SAF) levy of $1,200 per nominee per year, instead of the correct amount of $1,800, which applies to businesses with turnover above $10 million.

This meant the company underpaid the SAF levy on every nomination, and received a significant, but improper, financial benefit.

What Is the SAF Levy and Why Does Turnover Matter?

The Skilling Australians Fund (SAF) levy is a charge paid by sponsors to help fund training for Australian workers. The amount depends on:

  • Your annual business turnover, and
  • The length of the nominee’s employment.

If you declare your turnover is under $10 million, you pay $1,200 per year.
If it’s over $10 million, the levy is $1,800 per year.

Providing a false figure is not just an admin error, it is considered a breach under Regulation 2.90 for giving false or misleading information.

Why Accuracy in Financial Declarations Is Critical

The Department and the ABF assess your financial declarations against your supporting documents:

  • BAS (Business Activity Statements)
  • Profit & Loss statements
  • Tax returns
  • Statements made in interviews

In this case, the Director of WorkPro Solutions admitted in an ABF interview that the company’s turnover was “between $30–35 million”, completely inconsistent with what had been declared in every nomination form.

Potential Consequences of Providing False Information

If the Department finds that you have provided false or misleading information in sponsorship applications, they can take action under section 140M of the Migration Act, including:

  • Cancelling your Standard Business Sponsorship approval
  • Barring your business from sponsoring further workers for up to five years
  • Issuing infringement notices or seeking civil penalties in court

This not only impacts your current workforce but can also permanently damage your ability to sponsor in the future.

Lessons for Sponsors

1. Double-check your financial figures before lodging a nomination.
Make sure the turnover amount you declare is correct and backed by BAS or financial statements.

2. Be consistent across all documents.
What you say in a nomination form must match what appears in your BAS, tax returns, and interviews.

3. If there’s a mistake – explain it early.
If you realise incorrect information was submitted, provide a correction and supporting explanation before it becomes a compliance issue.

4. Seek advice if you’re unsure.
A Registered Migration Agent or accountant can help verify which turnover figure to use and how the SAF levy should be calculated.

Final Word

The WorkPro Solutions case is a reminder that carelessness or shortcuts in sponsorship applications can backfire, even if the intention wasn’t malicious. Accurate and honest information is not optional, it’s a legal obligation.

If you need help reviewing your records or preparing a nomination, speak to your migration advisor to avoid unintended breaches.

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