Last updated: 1 April 2026

How to Sponsor an Employee in Australia: Complete Employer Guide

This guide is written for Australian employers — business owners, HR directors, and hiring managers — who need to bring an overseas worker into their business through the employer sponsorship visa program. If you are the worker looking for applicant-side information, see our subclass 482 visa overview and 482 visa requirements guide.

Sponsoring an overseas employee in Australia is a structured, multi-stage process administered by the Department of Home Affairs. The primary visa pathway is the subclass 482 visa (Skills in Demand visa, formerly the Temporary Skill Shortage visa), which allows you to fill genuine skills gaps in your business when no suitably qualified Australian worker is available. For long-term retention, the subclass 186 employer nomination visa provides a pathway to permanent residency in Australia for your sponsored worker.

The process has three stages: becoming an approved sponsor, nominating a position, and the worker applying for the visa. Each stage has its own requirements, costs, and compliance obligations. Getting any of them wrong delays the entire process — or results in refusal.

Why Would You Sponsor an Overseas Worker?

Australian businesses sponsor overseas workers when they cannot fill a skilled position with an Australian citizen or permanent resident. The reasons are practical: your industry may have a documented skills shortage, the role may require specialised expertise that is scarce in the local labour market, or you may have identified a specific candidate through international recruitment who is the best fit for your business.

Employer sponsorship is not a shortcut to cheap labour. The system is designed to protect Australian workers and ensure overseas workers receive equivalent terms and conditions. Salary floors, labour market testing requirements, and ongoing compliance obligations enforce this.

For businesses willing to invest in the process, sponsorship gives you access to a global talent pool while building loyalty — the sponsored worker’s visa is tied to your business, and many sponsored workers go on to become permanent residents and long-term employees.

Stage 1: Becoming an Approved Standard Business Sponsor

Before you can nominate any position or sponsor any worker, your business must be approved as a Standard Business Sponsor (SBS). This is a separate application that establishes your eligibility to participate in the sponsorship program.

SBS Eligibility Requirements

Your business must meet all of the following:

• Lawfully operating in Australia. You must hold a valid ABN, be registered with ASIC (if a company), and be actively conducting business. Sole traders, partnerships, trusts, and companies can all apply.
• Not insolvent or in administration. If the business is under external administration or has been wound up, SBS approval will not be granted.
• Clean compliance record. No history of adverse immigration outcomes — previous sponsorship cancellations, sanctions, or bars prevent or delay approval.
• No discriminatory recruitment practices. You must not have preferenced overseas workers over equally qualified Australian workers without justification.
• Agreement to sponsorship obligations. Approval is conditional on accepting the full set of sponsorship obligations that apply for the life of the approval.

How to Apply for SBS

The SBS application is lodged online through your ImmiAccount. You will need to provide:

• Business registration documents (ABN, ASIC extract, trust deed if applicable)
• Financial statements demonstrating the business is operational and solvent
• Evidence of your track record as an employer (number of employees, industry, years of operation)
• A declaration confirming you understand and accept sponsorship obligations

There is no government application fee for the SBS application itself. Processing typically takes 1 to 4 weeks for established businesses with straightforward structures.

SBS Approval Duration

You can renew your SBS before it expires. If your approval lapses, any pending nominations or visa applications linked to your sponsorship may be affected.

Stage 2: Nominating the Position

Once your SBS is approved, you nominate the specific position you want to fill with an overseas worker. Each nomination covers one worker in one occupation. If you need to sponsor multiple workers, you lodge a separate nomination for each.

Genuine Position Requirement

The Department assesses whether the position is genuine — meaning it actually exists in your business and is consistent with your operations. Factors considered include:

• Whether the duties described match the ANZSCO occupation code
• Whether the position is consistent with the size and nature of your business
• Whether the position was created specifically to sponsor a particular person (a red flag)
• Whether similar positions exist in your business and are filled by Australian workers

A genuine position does not mean the role must already be vacant. You can nominate a position that will be created as part of business growth — but the growth must be genuine and supported by evidence.

Choosing the Right Occupation and Stream

The nominated occupation must appear on a relevant skilled occupation list. The stream determines the visa duration and PR pathway:

The occupation code must accurately reflect the duties of the role. Mismatched nominations — where the ANZSCO code does not align with the actual work — are a common refusal reason.

Salary Requirements

The nominated salary must meet or exceed both thresholds:

• Temporary Skilled Migration Income Threshold (TSMIT): Currently AUD 73,150 per year. This is the legislated minimum for all 482 nominations.
• Annual Market Salary Rate (AMSR): The salary an equivalent Australian worker in the same role, location, and industry would earn. If the AMSR is higher than the TSMIT, the AMSR applies.

The salary must be genuinely paid. Arrangements where the worker is expected to return part of the salary, or where excessive salary packaging reduces the effective cash component, do not satisfy the requirement.

Labour Market Testing

In most cases, you must demonstrate genuine efforts to recruit an Australian worker before nominating an overseas worker. Labour market testing (LMT) requirements include:

• Advertising the position on at least one Australian job platform (such as Seek, Indeed, or the relevant industry platform)
• Running the advertisement for a minimum of 4 weeks
• Advertising within the 4 months immediately before the nomination is lodged
• Retaining evidence of the advertisement, applications received, and reasons Australian applicants were not suitable

Exemptions to LMT apply for intra-company transfers, certain international trade obligations, and some occupations covered by bilateral agreements.

Skilling Australians Fund (SAF) Levy

The SAF levy is a mandatory employer cost paid at the time of nomination. It funds training for Australian workers and cannot be recovered from the sponsored worker under any circumstances.

The levy is paid upfront for the full visa period at the time the nomination is lodged.

Nomination Application Charge

A flat AUD 330 application charge applies per nomination. This is paid by the employer through ImmiAccount when the nomination is submitted.

Stage 3: The Worker Applies for the Visa

Once the nomination is lodged (it does not need to be approved first), the worker can lodge their subclass 482 visa application. The worker is responsible for meeting the personal eligibility requirements — qualifications, work experience, English proficiency, health, and character. See our 482 visa requirements guide for the full applicant-side breakdown.

As the employer, your role at this stage is to provide the nomination reference number and any supporting documentation the worker needs — such as the employment contract, position description, and confirmation of the salary offered.

Complete Sponsorship Process: Step-by-Step with Costs and Timelines

Total employer cost (excluding migration agent fees): AUD 2,730 to AUD 7,530 depending on business size and visa duration.

Total elapsed time from SBS application to visa grant: 3 to 7 months for a straightforward case. Complex cases involving additional document requests, skills assessment delays, or health examination referrals take longer.

Training Requirements

As part of your sponsorship obligations, you must demonstrate a commitment to training Australian workers. The SAF levy is the primary mechanism — by paying the levy, you fund the Skilling Australians Fund, which supports apprenticeships and traineeships.

Prior to the SAF levy system, employers were required to demonstrate direct training expenditure (the Training Benchmark system). That system has been replaced by the levy, simplifying compliance for employers while maintaining the training investment.

No additional training benchmark evidence is required for nominations lodged under the current framework. The SAF levy payment itself satisfies the training requirement.

Sponsorship Obligations: What You Must Do as a Sponsor

Becoming an approved sponsor triggers a set of legally binding obligations. These are not optional — they are conditions of your SBS approval and carry enforceable penalties for non-compliance.

Core obligations include:

• Equivalent terms and conditions. Pay the sponsored worker at least the same salary and provide the same working conditions as an equivalent Australian worker in the same role.
• Keep records. Maintain records of the sponsored worker’s employment — pay records, leave records, hours worked, and position details — for the duration of the sponsorship plus two years after it ends.
• Cooperate with inspectors. Allow Department of Home Affairs inspectors access to your records and premises if they conduct a monitoring visit.
• Pay travel costs if the visa is cancelled. If the sponsored worker’s visa is cancelled and they cannot pay for their own departure from Australia, you must pay reasonable travel costs for the worker and their dependants to return to their home country.
• Do not discriminate. You must not treat the sponsored worker less favourably than an Australian worker in the same position.
• Do not recover costs. You must not require the worker to pay for sponsorship costs, nomination fees, the SAF levy, or any other costs that are the employer’s responsibility under the sponsorship framework.
• Notify the Department of changes. You must notify the Department if the sponsored worker’s employment ends, if the business is sold or restructured, or if there are material changes to the position or salary.

For a detailed breakdown of every obligation, the penalties for breach, and the monitoring framework, see our employer obligations under the 482 guide.

Penalties for Non-Compliance

The Department of Home Affairs has significant enforcement powers. Penalties for breaching sponsorship obligations include:

These are not theoretical. The Department actively monitors sponsors and investigates complaints from sponsored workers. Non-compliance is taken seriously and can result in enforcement action that permanently affects your ability to sponsor workers in the future.

What About Permanent Residency for Your Sponsored Worker?

If you sponsor a worker on the medium-term stream (now the Core Skills stream) or the Specialist Skills stream, that worker has a pathway to permanent residency through the subclass 186 employer nomination visa Temporary Residence Transition (TRT) stream.

The 482 to PR pathway works as follows:

1. The worker completes the required work period (typically two years full-time) in the nominated occupation with your business
2. You lodge a 186 TRT nomination — confirming the role is ongoing, the salary meets requirements, and the employment is continuing
3. The worker lodges the 186 TRT visa application
4. If approved, the worker receives permanent residency in Australia

This is a significant retention tool. Workers who know their employer will support their PR pathway are more likely to stay and commit to the business long-term. The 186 nomination involves an additional SAF levy (AUD 1,800 for small business, AUD 3,000 for other businesses — one-off for permanent nomination) and a nomination charge of AUD 330.

Common Mistakes Employers Make When Sponsoring

Underestimating the timeline. The full process from SBS application to visa grant can take 3 to 7 months. Factor this into your recruitment planning. Starting the process only when you urgently need the worker creates pressure and increases the risk of errors.

Mismatching the occupation code. The ANZSCO code on the nomination must accurately reflect the duties of the role. Nominating under a code that does not match the actual work — even if the code is on the occupation list — leads to refusal.

Failing to conduct proper labour market testing. LMT evidence is scrutinised. Advertisements that are too narrow (targeting only overseas candidates), too brief (running for less than 4 weeks), or placed on platforms unlikely to reach Australian job seekers will not satisfy the requirement.

Offering a salary below the threshold. The TSMIT is a floor, not a target. If the market rate for the occupation in your location is higher, you must pay the market rate. Salary shortfalls are a top reason for nomination refusal.

Recovering costs from the worker. This is unlawful. Any arrangement where the worker reimburses the employer for sponsorship costs, the SAF levy, or migration agent fees is a breach of sponsorship obligations.

Not planning for the PR stage. If you want to retain your sponsored worker long-term, discuss the 186 TRT pathway early. Workers who are uncertain about their employer’s commitment to the PR nomination may seek opportunities elsewhere.

Sponsoring Under a Labour Agreement

If your occupation or industry is not covered by the standard 482 streams, or if you need concessions on standard requirements, a labour agreement may be an option. Labour agreements are formal arrangements negotiated between your business (or industry body) and the Department of Home Affairs.

Types of labour agreements include:

• Company-specific agreements for individual employers with unique workforce needs
• Industry agreements covering specific sectors (meat processing, on-hire labour, horticulture)
• Designated Area Migration Agreements (DAMAs) for regional employers
• Project agreements for major infrastructure or resource projects

Labour agreements can provide concessions on age limits, English requirements, salary thresholds, and the occupation list. The negotiation process takes several months and requires a strong evidence base demonstrating that standard sponsorship pathways are insufficient for your workforce needs.

Who Can Help You Through the Process?

The sponsorship process involves immigration law, compliance obligations, and administrative procedures that benefit from professional guidance. A registered migration agent can manage the SBS application, nomination, and worker visa application on your behalf — ensuring documentation is complete, deadlines are met, and compliance risks are identified early.

You can also use our employer sponsored visa Australia overview to understand the full range of options available to your business.

Frequently Asked Questions

How much does it cost an employer to sponsor a worker in Australia?

The total employer cost for sponsoring a worker on a 482 visa includes the Standard Business Sponsorship application (no government fee), the nomination application charge of AUD 330, and the Skilling Australians Fund levy of AUD 1,200 per year (small business) or AUD 1,800 per year (other businesses) for the duration of the visa. For a 4-year nomination, a large business pays AUD 7,530 in government costs alone. Add migration agent fees of AUD 3,000 to AUD 8,000 and the total employer investment ranges from AUD 6,000 to AUD 16,000 or more. Employers are legally prohibited from recovering these costs from the sponsored worker.

How long does it take to become an approved sponsor?

Standard Business Sponsorship approval typically takes 1 to 4 weeks for straightforward applications where the business is established and has a clean compliance record. New businesses or those with complex corporate structures may take longer. The SBS approval is valid for 5 years for established businesses and 18 months for businesses operating for less than 12 months.

Can a small business sponsor an overseas worker?

Yes. There is no minimum business size requirement for Standard Business Sponsorship. Small businesses must demonstrate they are lawfully operating, have a genuine need for the position, and can meet their sponsorship obligations including paying the SAF levy. Small businesses with annual turnover under AUD 10 million pay a reduced SAF levy rate of AUD 1,200 per year of the visa period.

What happens if an employer breaches sponsorship obligations?

Breaches of sponsorship obligations can result in civil penalties of up to AUD 93,900 per contravention for a body corporate and AUD 18,780 per contravention for an individual. The Department of Home Affairs can also cancel the sponsorship approval, bar the employer from future sponsorship applications, and issue infringement notices. Common breaches include failing to pay the agreed salary, recovering sponsorship costs from the worker, and not notifying the Department of changes to the worker’s employment.

Does the employer need to do labour market testing?

In most cases, yes. Employers must demonstrate they made genuine efforts to recruit Australian citizens or permanent residents before nominating an overseas worker. This typically requires advertising the position on Australian job platforms for at least 4 weeks within the 4 months before the nomination is lodged. Evidence must be retained, including copies of advertisements, applications received, and reasons why Australian applicants were not suitable. Some exemptions apply for intra-company transfers and certain international trade obligations.

Can an employer sponsor someone who is already in Australia?

Yes. An employer can sponsor a worker who is onshore on a valid visa. The worker can lodge their 482 application while in Australia and will generally be granted a Bridging Visa A to maintain lawful status while the application is processed. Workers on student visas, working holiday visas, or other temporary visas can all be sponsored — provided they meet the 482 eligibility requirements and the employer meets the nomination requirements.

What Should You Do Next as an Employer?

If you have identified a skilled overseas worker you need in your business — or if you are considering employer sponsorship as a recruitment strategy — the first step is understanding whether your position and the worker qualify.

Confirm the occupation appears on a relevant skilled occupation list. Check that the salary you intend to offer meets the TSMIT and the market rate. Ensure your business can meet the SBS requirements and that you are prepared to accept the ongoing sponsorship obligations.

We work with Australian employers across all stages of the sponsorship process — from initial SBS applications through to 186 permanent residency nominations. If you want a clear assessment of your sponsorship options and what the process looks like for your specific situation, we are here to help.