Visa 186 Nomination Fee: Who Pays and Is It Refundable?
How the 186 nomination fee is structured
When lodging a visa 186 nomination, the employer must pay two main charges:
1. Nomination fee: This is the administrative fee paid to DHA to process the nomination. It is updated periodically by financial year and typically sits in the range of a few hundred Australian dollars.
2. Skilling Australians Fund (SAF) levy: This is the more significant charge and is usually much larger. The SAF levy was introduced in 2018 to help fund the training and skilling of Australian workers. For visa 186:
- A small business (annual turnover under AUD 10 million): the SAF levy is AUD 3,000 (paid once, not spread out as it is for visa 482).
- A large business (annual turnover of AUD 10 million or more): the SAF levy is AUD 5,000 (paid once).
Note: visa 186 is a permanent residence visa, so the SAF levy is only payable once, unlike the temporary visa 482 where it is paid per year.
Who has to pay the nomination fee?
Under Australian migration law, the employer is the party legally obliged to pay the nomination fee. This is especially clear for the SAF levy: the employer is not permitted to pass this charge on to the nominee in any form.
Specifically, the Migration Regulations prohibit:
- Requiring the nominee to directly repay the SAF levy.
- Deducting the SAF levy from the nominee’s wages.
- Signing an agreement requiring the nominee to reimburse the nomination fee if they leave the company.
Breaching this rule can result in the employer losing its sponsorship approval and facing administrative penalties.
Is the nomination fee refundable?
This is a very practical question for many employers. The official answer:
SAF levy: Under the current rules, the SAF levy is not refundable in any circumstance — including where the nomination is refused, withdrawn, or where the company ceases to operate.
Nomination fee: This is generally also not refunded if the nomination is refused after DHA has considered it. However, if the nomination is withdrawn before DHA begins processing, the employer may apply for a refund of the processing fee (not the SAF levy), and the outcome depends on DHA’s decision on a case-by-case basis.
The nominee’s visa application charge: This charge is paid separately by the nominee. If the nomination is refused before the visa application is processed, the nominee may request a refund of the visa charge in certain situations, but it is not refunded automatically.
What happens if the company becomes insolvent
When a sponsoring company becomes insolvent after paying the nomination fee and SAF levy, this usually becomes an unrecoverable loss. The company’s liquidator cannot reclaim the SAF levy already paid to DHA. This is one of the reasons employers need to assess carefully before committing to sponsor a visa 186.
Passing costs to the nominee is prohibited
To underline this important point: any arrangement — written or verbal — requiring the nominee to repay the nomination fee or SAF levy is unlawful under Australian migration law. If a nominee discovers that an employer is asking or pressuring them to pay this charge in any form, they have the right to report it to DHA or the Fair Work Ombudsman without fear of it affecting their visa.
Total costs an employer should prepare for
When planning to sponsor a visa 186, an employer should budget for:
- Nomination fee + SAF levy: from roughly AUD 3,500 to AUD 5,500+ depending on the size of the business.
- Migration agent costs (if used): typically from AUD 3,000 to AUD 7,000+.
- Health and character check costs for the nominee (usually paid by the nominee themselves).
The total cost on the employer’s side usually ranges from AUD 5,000 to AUD 12,000 or more, depending on the complexity of the case and the adviser engaged.