How to Sponsor an Employee in Australia

TL;DR

• What Sponsorship Means: Sponsoring lets you hire skilled workers from overseas when local talent isn’t available.
• Who Can Sponsor: Any legally operating business in Australia can sponsor employees.
• Eligible Workers: You can sponsor skilled workers from overseas or those already in Australia.
• Visa Options: Popular visa options include the 482, 186, and 494 visas for skilled workers.
• Costs: Sponsorship fees range from AUD 420 to AUD 5,000, plus the Skilling Australians Fund (SAF) levy.

 

Have you ever found yourself struggling to fill a vacancy in your business because the right skills just aren’t available locally? Many employers in Australia face this exact challenge. Sponsoring an overseas worker can be the solution, allowing you to bring skilled professionals who can keep your business moving forward.

Sponsorship isn’t just about filling a role quickly. It comes with clear responsibilities, specific rules, and financial commitments that every employer must understand. From proving labour shortages to meeting salary requirements, there are steps you’ll need to follow carefully. If you’re already in Australia and considering how to sponsor an employee, this guide will help you grasp what’s involved, step by step.

Please note: This article serves as a general guide to help you understand the topic, with information accurate as of the publication date. We recommend consulting a registered migration agent or The Department of Home Affairs for precise, up-to-date guidance tailored to your specific circumstances.

What Sponsorship Means

Sponsorship is a formal arrangement where your business employs an overseas worker when no suitable Australian citizen or permanent resident is available. It allows that worker to take on a skilled role, either temporarily or permanently, under a visa tied to your business.

When you become a sponsor, you also take on specific obligations:

1. Paying fair wages: You must provide market salary rates and meet minimum income thresholds.
2. Respecting occupation lists: Only jobs listed on the Skilled Occupations List are generally eligible, unless you arrange a labour agreement.
3. Supporting compliance: Workers may need Australian licences or registrations for their roles.
4. Protecting workers: Sponsorship laws exist to prevent exploitation and ensure overseas employees are not paying for their own sponsorship.

 

Sponsorship is a regulated responsibility where you employ an overseas worker while following rules that safeguard both your business and the employee.

Now that you understand what sponsorship involves, it’s important to know who can step up to the plate as a sponsor. Let’s take a look at the requirements for businesses to qualify.

Who Can Become a Sponsor

The good news is that most businesses operating legally in Australia can apply to become a sponsor. You don’t need to be a large organisation, but you must be properly established and active.

There are different types of sponsorship available:

1. Standard Business Sponsorship (SBS): The most common option, valid for 5 years, allowing you to sponsor workers under visas like the Skills in Demand (subclass 482) and the Skilled Employer Sponsored Regional (subclass 494).
2. Accredited Sponsorship: For SBS holders who qualify, this gives priority processing of visa applications and nominations.
3. Temporary Activity Sponsorship: Suitable if you want to sponsor someone under visas like the Temporary Activity (subclass 408) or Training (subclass 407).
4. Labour Agreements: For businesses with unique workforce needs not covered by the standard programs.

 

If your business meets the requirements, becoming a sponsor can open doors to skilled workers who are ready to contribute.

Now, let’s explore the workers who qualify for these opportunities.

Who You Can Sponsor

You may be wondering who qualifies for sponsorship. You can sponsor a skilled worker if you can prove there are no suitable Australian workers available for the role.

Here are the typical scenarios:

1. Skilled workers living overseas who want to travel and work in Australia.
2. People already in Australia on another visa that doesn’t allow work, or those who are already working here on a temporary visa but want to switch to a sponsored one.
3. Existing visa holders under programs like the 482 or 457 visa, if you’re taking over as their sponsor.

 

With limited exceptions, the role you’re sponsoring must be listed on the Skilled Occupations List. If your business requires a niche role not listed, you may consider a labour agreement or the Global Talent Scheme.

Now that you’re clear on who can be sponsored, it’s time to explore the various visa options for skilled workers. 

Visa Pathways for Sponsored Workers

Sponsorship doesn’t work the same for everyone, it depends on the type of visa. Here are the main pathways:

1. Skills in Demand Visa (subclass 482): Temporary, 1–4 years, tied to your business and occupation. Applicants need at least 12 months’ work experience.
2. Employer Nomination Scheme (subclass 186): A permanent visa, available directly or through a transition from the 482 visa. Workers must commit to at least 2 years of employment.
3. Skilled Employer Sponsored Regional (Provisional) Visa (subclass 494): For designated regional areas, valid 5 years, with work commitments.
4. Temporary Activity Visa (subclass 408) and Training Visa (subclass 407): For short-term activities, specific projects, or training purposes.

 

Each pathway is designed for different situations, but in all cases, you, as the sponsor, take responsibility for the worker.

With visa pathways explained, the next step is understanding the process itself. Here’s how to get started.

Steps to Sponsor an Employee

Sponsoring can feel like a lot at first, but the process follows a clear order. If you’re already in Australia and want to sponsor an employee, use the steps below as your working checklist. Each step builds on the last, so take them in sequence and keep simple evidence for each stage.

Step 1: Prove local shortages (labour market testing)

You’ll need to show that you are not able to find the right Australian citizen or permanent resident for the role. This means keeping evidence of your labour market testing and ensuring it meets the specific requirements. A small number of occupations are exempt from this requirement, but unless you’re clearly in one of those, plan to provide proof. Good records here make the rest of the process smoother because they show the job genuinely fills a skill gap.

Step 2: Confirm the occupation is eligible

Check that the role you want to fill is on the eligible skilled occupation lists. If it isn’t, you may explore a labour agreement, and some options exist for highly paid applicants with specialist skills or exceptional talent. The occupation you nominate will drive the visa options and stream available to your candidate. Remember, you must pay at least the market salary rate and meet any applicable income threshold for that occupation.

Step 3: Match the visa to the role and the worker

Choose the visa that suits both your business needs and the worker’s situation (for example, temporary vs permanent, regional vs non-regional). Use VEVO to check the worker’s eligibility for the visa you have in mind. Certain applicants may also need relevant Australian registration, licences or certificates tied to the occupation. Picking the right visa at this point avoids rework later.

Step 4: Check your business is eligible to sponsor

Any operating and legally established business in Australia can apply to become a sponsor. Make sure you can meet sponsor obligations, including paying market rates, contributing to the Skilling Australians Fund where required, and not shifting costs to the worker. Think about whether you’ll apply for accredited status after approval, as accredited sponsors receive priority processing for certain nominations and visas. If your needs aren’t covered by standard programmes, consider whether a labour agreement is appropriate.

Step 5: Apply to become an approved sponsor

Submit your sponsorship application so you can nominate and employ the worker. A Standard Business Sponsorship is typically valid for 5 years, and once approved you can sponsor for visas such as the Skills in Demand (subclass 482) and Skilled Employer Sponsored Regional (Provisional) (subclass 494). Depending on your pathway, you may also apply to be an accredited sponsor for faster processing. Keep in mind: sponsorship approval and accredited status are separate steps, but both sit under your broader plan to sponsor an employee.

Step 6: Nominate the occupation (and person)

Lodge a nomination for the specific occupation/position and include details of the person who will fill it. In most cases, the position must be on the relevant skilled occupation list, and you must show the nominated salary meets market rates and any income threshold. This is also where the Skilling Australians Fund (SAF) levy is calculated and paid in full, based on your business size and the proposed period of stay. Paying the levy at nomination is mandatory, and you must not pass this cost to the worker.

Step 7: The worker lodges the visa application

The skilled worker (your nominee) completes the visa application, and you should still check they meet the visa’s eligibility criteria. Some applicants will need a skills assessment from the correct assessing authority for their occupation; this forms part of the visa process. Applicants may also need to meet skills, English language, age and work-experience requirements, and hold any required Australian licences or registrations. Your role is to support and ensure the paperwork aligns with what you’ve put forward in the nomination.

If you’re taking over an existing business (with sponsored workers)

If you acquire a business that already employs SID, TSS (482) or former 457 visa holders, you must apply to become an approved sponsor for that business and lodge a new nomination for each visa holder. The worker doesn’t need a new visa unless their current visa is about to cease or you intend to employ them in a different nominated occupation. Sorting this early helps maintain lawful work rights and avoids interruptions to operations.

The process may seem lengthy, but with the right advice it becomes manageable. Knowbal helps employers like you prepare the right documents, meet requirements, and avoid delays. Talk to us now!

By moving through these steps in order, you put your sponsorship on solid ground. The natural next question is cost. See what you pay, when you pay it, and what (if anything) may be refundable.

Costs Involved in Sponsoring an Employee

Costs are an important factor when you decide to sponsor. You must pay all sponsorship-related expenses; these cannot be transferred to the worker.

1. Sponsorship application: AUD 420 for a standard business or temporary activity sponsor.
2. Nomination costs: Vary by visa (e.g., AUD 330 for 482 visa, AUD 540 for 186 visa).
3. Skilling Australians Fund (SAF) levy:
   • Small businesses (< AUD 10m turnover): AUD 1,200 per year (482) or AUD 3,000 once-off (186/494).
   • Larger businesses (≥ AUD 10m turnover): AUD 1,800 per year (482) or AUD 5,000 once-off (186/494).

 

Refunds are limited and only apply in certain cases, such as if a worker never arrives or if incorrect details were provided in your application.

Remember: It is illegal for workers to pay for their own sponsorship. Employers and employees caught exchanging money or benefits for sponsorship face serious penalties.

Final Thoughts

Sponsoring an employee in Australia can help you solve skills shortages, but it’s not something to enter lightly. You’ll need to meet eligibility rules, cover the associated costs, and take responsibility for your employee’s compliance while they’re under your sponsorship.

Handled correctly, though, sponsorship can give your business access to talent that strengthens your workforce and contributes to Australia’s economy.

Are you thinking about sponsoring an employee but not sure where to start? Knowbal can guide you through every step with expert advice and support. Why not reach out today and make the process easier for yourself? Contact us now!

Frequently Asked Questions (FAQs)

1. How long does a sponsorship last?

Most standard business sponsorships are valid for 5 years from approval. Temporary visas like the 482 may last 1-4 years, depending on the role.

2. Can I get a refund if the visa is refused?

Refunds are very limited. In some cases, parts of the SAF levy or nomination fee may be refunded, but sponsorship application fees are generally non-refundable.

3. Do I need to sponsor someone already working in Australia?

Not always. If a person already has work rights on another visa, they might not require sponsorship.

4. What happens if my sponsored worker leaves early?

Your obligations may continue after the employee stops working for you, and refunds of SAF levies are limited to specific situations.

5. What’s the benefit of becoming an accredited sponsor?

Accredited sponsors enjoy priority processing for 482 and 494 visas, which can speed up the overall application process.

Have more questions? Contact Knowbal!