Labour Market Testing and the SAF Levy for 494 Visa Employers

Regional employers nominating a worker for a Subclass 494 visa in the Employer Sponsored stream usually need to test the Australian labour market first, and must pay the Skilling Australians Fund (SAF) levy when they lodge the nomination. This guide explains the advertising rules, the exemptions, the levy amounts and when you can get the levy back.

When labour market testing applies

LMT applies to Employer Sponsored stream nominations. For the Labour Agreement stream, the recruitment rules are set out in the labour agreement itself. The Department must also be satisfied that no suitably qualified and experienced Australian citizen, permanent resident or eligible temporary visa holder is readily available for the role.

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The advertising rules

• at least two ads, in English, placed or authorised by the employer (a recruiter can place them);
• on a national recruitment website, national print media published at least monthly, national radio, or for accredited sponsors, the employer’s own website;
• each ad must show the job title or description, the skills or experience needed, the employer’s or recruiter’s name, and the salary if it is below a set threshold;
• each ad must accept applications for at least four continuous weeks;
• each ad must run during the 4 months ending on the day you lodge.

Four weeks means four continuous weeks. Two separate two week ads do not count. Social media posts on their own are not enough, and LinkedIn ads must be public job ads. Keep copies of every ad, screenshots and invoices.

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Recent redundancies

If the business, or an associated entity, made Australians in the same or a similar occupation redundant in the 4 months before lodgement, the advertising must take place after those redundancies, and details must be given.

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What can undermine your testing

• ads for a different role from the one nominated;
• the worker being nominated placed the ads;
• ads on much worse terms, such as part time or much lower pay;
• rejecting suitable local applicants without good reasons.

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Exemptions from the standard rules

Some positions do not need the standard advertising, but the employer must give a written explanation of why no suitable local worker is readily available. They include:

• internationally recognised exceptional achievers in a profession, sport, academia or research;
• staff of an established overseas business transferred to an associated Australian sponsor;
• existing 457, 482 or 494 holders re-nominated only because of a change in earnings or a business restructure;
• positions with earnings of $250,000 or more;
• medical practitioners in ANZSCO Minor Group 253, other than General Practitioners (253111) and Medical Practitioners nec (253999), and ambulance officers and paramedics.

Under policy, the major disaster, occupation based and international trade exemptions do not currently apply to the 494. See also labour market testing exemptions for 482 nominations.

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The SAF levy

Business annual turnover	SAF levy for a 494 nomination
Less than $10 million	$3,000
$10 million or more	$5,000

The levy is paid in full when the nomination is lodged. If the worker already holds a 494 and is changing to a new employer, the new levy is reduced based on how many whole years have passed since the visa was granted. Labour agreement nominations for Ministers of Religion and Religious Assistants have a nil levy. If the levy is underpaid, the nomination cannot be approved until it is fixed.

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When the levy can be refunded

• the nomination is withdrawn before a decision because the wrong occupation, stream or turnover was used;
• the sponsorship application is refused or withdrawn;
• the visa is refused on certain character, security, health or integrity grounds, once finally determined;
• the visa is granted but the worker never starts work;
• the worker leaves in the first year of employment, in which case part of the levy is refunded.

There is no refund if the nomination is refused, or if the employer simply changes its mind. Refunds are generally requested in writing and are paid to whoever paid the levy. Asking a worker for a payment in return for sponsorship is unlawful, so employers should not seek to recover the levy from the worker. See SAF levy refund rules.

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What you should do now

• Plan your ads around lodgement: each ad must run during the 4 months ending on the day you lodge.
• Keep complete records: copies, screenshots and invoices for every ad.
• Work out your turnover: it sets the levy, and the wrong figure can delay approval.
• Never pass costs to the worker: asking the worker for any payment in return for sponsorship is unlawful.