One of the first questions employers ask before sponsoring a worker is: “How much will it cost?”

Employer sponsorship involves government charges, professional fees, business preparation costs and the Skilling Australians Fund levy, commonly called the SAF levy.

Home Affairs provides information on the costs involved in becoming a sponsor, including the SAF levy.

What Is the SAF Levy?

The SAF levy is a charge paid by businesses nominating overseas workers for certain employer-sponsored visas. It is designed to support skills development in Australia.

For employers, it is important because it can significantly affect the upfront cost of sponsorship.

Why Cost Planning Matters

Some employers begin sponsorship discussions without understanding the total budget. This creates delays later.

Before sponsoring, a business should understand:

• Sponsorship application costs
• Nomination costs
• SAF levy
• Visa application charges
• Professional advisory fees
• Possible document preparation costs

Who Pays What?

Employers should be careful with sponsorship-related costs. Some costs are employer obligations and should not be passed to the worker inappropriately.

A compliant cost structure should be discussed before starting the application.

Sponsorship Cost Is Not Just a Fee — It Is a Business Decision

A good worker can add long-term value to the business. However, sponsorship should be planned like a business investment.

Employers should ask:

• Is the role critical?
• Is the worker suitable?
• Can the business retain the worker?
• Is the salary sustainable?
• Is there a possible PR pathway later?

Common Mistakes

• Not budgeting for SAF levy
• Not checking salary compliance
• Assuming all costs can be recovered from the worker
• Sponsoring without checking the applicant’s documents
• Delaying the process until the worker’s visa is close to expiry

Final Word

Understanding the SAF levy and sponsorship costs early helps employers make informed decisions and avoid last-minute surprises.