Labour Market Testing and the SAF Levy: What Employers Need to Know
Information current as at October 2026. Rules, fees and lists change often, so check your circumstances with us before you act.
Two requirements catch out more first time sponsors than any others: labour market testing (LMT), which shows you looked for an Australian worker before nominating an overseas worker, and the Skilling Australians Fund (SAF) levy, a training charge paid with every nomination. Getting either one wrong usually means a refused nomination and lost fees.
This guide explains when LMT applies, how to advertise so that your evidence is accepted, the exemptions, how the SAF levy is calculated, and when refunds are possible. Need advice on your situation? You can book a consultation with our employer team.
When labour market testing applies
| Visa | Is LMT required? |
|---|---|
| Skills in Demand (482), Specialist Skills and Core Skills streams | Yes, unless an exemption applies |
| Skills in Demand (482), Labour Agreement stream | As set by the labour agreement (usually yes) |
| Skilled Employer Sponsored Regional (494) | Yes, and Regional Certifying Body advice is also needed in most cases |
| Employer Nomination Scheme (186) | No |
| Training (407) and Temporary Activity (408) | No |
For the visas themselves, see the 482 guide, the 494 and DAMA guide and the 186 guide.
The advertising rules
- Advertise the position at least twice.
- Each advertisement must be open for at least four weeks.
- Both advertisements must be within the four months before you lodge the nomination. If more than four months pass, you need to advertise again.
- Advertisements must be in English, run in Australia and have national reach. National recruitment websites, national print media and national radio are the usual formats. Other formats are only accepted in limited circumstances.
- Each advertisement should state the position title or a description of the role, the skills or experience required, the name of your business or the recruitment agency, and the salary or salary range in most cases.
- Advertising on Workforce Australia has been optional since 11 December 2023.
Keep copies of each advertisement showing the dates it ran, the number of applicants, and a short explanation of why applicants were not suitable. This evidence is lodged with the nomination. Our main site page on labour market testing for the 482 has more examples.
Exemptions and alternatives
- Australia’s free trade agreements and World Trade Organization commitments mean LMT cannot be required in some cases.
- Examples include some intra-company transferees (executives, managers and specialists moving from an associated overseas entity) and citizens of some trade partner countries.
- The exemption depends on the worker’s citizenship, their relationship with your business and the agreement concerned, so check before you rely on it.
The Skilling Australians Fund (SAF) levy
The SAF levy is a nomination training contribution charge. It is paid when you lodge the nomination and funds training for Australian workers. The amount depends on your annual turnover and the visa.
| Business turnover | 482 visa | 186 and 494 visas |
|---|---|---|
| Less than $10 million | $1,200 for each year (or part year) of the nomination | $3,000, paid once |
| $10 million or more | $1,800 for each year (or part year) of the nomination | $5,000, paid once |
- Example: a business with turnover above $10 million nominating a worker for a four year 482 pays $7,200 (4 x $1,800).
- The levy applies again when a new nomination is lodged, including when a 482 worker changes employer.
- For a 494 nomination where the worker already holds a 494, the levy is reduced in proportion to the years left on the visa (for example 60% if three years remain).
- Labour agreement nominations also attract the levy. Ministers of religion and religious assistants under the labour agreement streams of the 482 or 186 are exempt.
- The levy is tax deductible for the business.
- It must be paid by the employer and must not be passed on to the worker or anyone else.
SAF levy refunds
Refunds are limited. A refund may be possible where:
- your sponsorship application is refused
- the visa is refused on health or character grounds
- the worker is granted the visa but never starts work with you
- a 482 worker stops working for you within the first 12 months, in which case the refund is based on the years remaining on the visa
- the nomination was needed because of a mistake by Home Affairs
There is generally no refund if you withdraw the nomination or it is refused. A written request is normally made by the person who paid. Our SAF levy page has the full rules.
Common mistakes
Advertising too early
If the first advertisement started more than four months before you lodge, it does not count. Plan the nomination date before you advertise.
Advertisements that do not match the nomination
The role, duties and salary in the advertisements should match the position you nominate. A different job title or a much lower salary can lead to refusal.
Only advertising on social media
Posts on your social channels alone are not usually accepted. Use at least one national recruitment website or national media.
No evidence of the results
Keep the applicant numbers and your reasons for not hiring them. Without this, the testing may not be accepted.
Choosing the wrong turnover band
The SAF levy band depends on the turnover of the business (and, in some cases, associated entities). Paying the wrong amount delays the nomination.
Frequently asked questions
Can we use advertisements we ran for a different role?
Only if they were genuinely for the same position and meet all the rules, including the four month window.
Do we have to interview Australian applicants?
You should genuinely consider every suitable applicant. Explain why each one was not suitable in your evidence.
Does a recruitment agency advertisement count?
Yes, if it meets the same rules and identifies the agency.
Is the SAF levy payable for a 186 if we already paid it for the 482?
Yes. The 186 nomination attracts its own one-off levy of $3,000 or $5,000.
Can the worker reimburse us for the levy?
No. Recovering the levy or other sponsorship costs from the worker breaches your obligations and can be an offence.
Do we need LMT to hire a 482 worker from another employer?
Usually yes. Taking over a 482 worker needs a new nomination, and the usual LMT rules and SAF levy apply to that nomination unless an exemption applies.
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