Steps to Sponsor a Foreign Worker in Australia

sponsorship visa requirements

Finding the right talent can define your business’s success. When local options fall short, sponsoring a foreign worker becomes a powerful solution. Curious about how to get started? This guide simplifies the sponsorship process, outlining requirements, costs, timelines, and key visa categories. Whether you’re navigating the Skilled Occupation Lists or exploring your eligibility as a sponsor, we’ve got you covered.

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 check The Department of Home Affairs for precise, up-to-date guidance tailored to your specific circumstances.

Sponsorship-Eligible Occupations

Sponsoring a foreign worker begins with understanding whether the role you are hiring for is eligible for sponsorship under Australian immigration rules. Not all jobs qualify, and the first step is to check if the position appears on the government’s Skilled Occupation Lists (SOLs). These lists are specifically designed to address skill shortages by identifying roles where there is a genuine need for overseas talent.

Let’s break down these occupation lists and how they apply to various visa types.

Understanding Eligible Occupations

The Australian government maintains three primary Skilled Occupation Lists:

  • Medium and Long-term Strategic Skills List (MLTSSL)
  • Short-term Skilled Occupation List (STSOL)
  • Regional Occupation List (ROL)

Each list serves a distinct purpose and aligns with specific visa pathways.

Medium and Long-term Strategic Skills List (MLTSSL)

The MLTSSL is designed for roles in industries with sustained long-term demand. Occupations on this list are eligible for both General Skilled Migration (GSM) visas—such as Subclass 189, 190, and 491—and Employer-Sponsored visas.

Key Sectors Represented:

  • Engineering: Civil engineers, mechanical engineers, electrical engineers.
  • IT & Technology: Software developers, IT business analysts, system administrators.
  • Healthcare: General practitioners, nurses, medical specialists.

For instance, the MLTSSL includes 212 occupations for General Skilled Migration visas and expands to 216 occupations for Employer-Sponsored visas. These roles often offer stable pathways to permanent residency, making them highly attractive for both employers and workers.

Short-term Skilled Occupation List (STSOL)

The STSOL targets roles that are experiencing short-term skill shortages. This list primarily supports the Temporary Skill Shortage (TSS) Visa (Subclass 482). While certain pathways to permanent residency are available through visas like Subclass 190, 491, or the Temporary Residence Transition (TRT) stream of Subclass 186, these opportunities are more limited compared to the MLTSSL.

Key Sectors Represented:

  • Hospitality: Chefs, cooks, restaurant managers.
  • Trades: Carpenters, electricians, plumbers.

The STSOL is ideal for businesses needing to address immediate skill gaps, especially in high-demand industries. However, employers should be aware of the residency limitations associated with some of these roles.

Regional Occupation List (ROL)

The ROL is specifically tailored to support jobs in regional areas of Australia, encouraging skilled workers to settle and contribute outside major cities. It is primarily associated with visas like Subclass 491 and 494, which are designed to bolster regional development.

Key Features of the ROL:

  • Worker Incentives:
    • Lower English language requirements.
    • Exemptions from age criteria.
    • Regional-specific concessions.
  • Popular Roles:
    • Primary school teachers.
    • Agricultural scientists.
    • Allied health professionals.

While these roles may not always lead directly to permanent residency, the incentives and regional opportunities make them appealing for both employers and skilled workers.

What If Your Role Isn’t on These Lists?

If the role you need is not listed on the MLTSSL, STSOL, or ROL, there may still be options available. One such option is the Designated Area Migration Agreement (DAMA).

What is DAMA?

DAMA is a tailored migration program designed for regional employers. It provides:

  • Flexibility in eligible occupations.
  • Concessions on English language requirements and salary thresholds.
  • Opportunities to fill critical gaps in local labor markets.

Who Can Become a Sponsor?

To sponsor a foreign worker in Australia, your business must first become an approved sponsor. This step ensures your business meets legal requirements, is financially stable, and is capable of supporting an overseas employee.

Key Requirements for Employers

1. Operate as a Legally Registered Business

Your company must be registered and actively trading in Australia. Providing documents such as your Australian Business Number (ABN), financial statements, and evidence of ongoing operations (like contracts or invoices) will demonstrate your legitimacy.

2. Prove Genuine Need for the Role

You need to show that you’ve made efforts to hire locally but couldn’t find a suitable candidate. This involves:

  • Advertising the Role: Post job listings across multiple platforms (e.g., job boards, newspapers) for at least 28 days.
  • Submitting Evidence: Provide recruitment reports that outline the lack of suitable local applicants.

This process ensures sponsorship is used to address real skill shortages.

3. Adhere to Workplace Laws

Sponsors must comply with Australian labor laws, which include:

  • Paying foreign workers a market-equivalent salary to ensure fairness.
  • Following workplace standards outlined in the Fair Work Act, including health and safety requirements.

Failure to meet these obligations can result in penalties, including loss of sponsorship approval.

Becoming an approved sponsor not only fulfills legal requirements but also establishes your business as a responsible employer. By meeting these criteria, you can confidently proceed with hiring overseas talent to address critical skill shortages.

Types of Approved Sponsors

Sponsoring a foreign worker requires your business to be an approved sponsor. There are three types of sponsorship categories designed to suit different employer needs:

1. Standard Business Sponsors

This category applies to most employers. It allows you to sponsor foreign workers for specific visa types such as:

  • Temporary Skill Shortage Visa (Subclass 482)
  • Employer Nomination Scheme Visa (Subclass 186)

2. Accredited Sponsors

Accredited sponsorship is for businesses with a proven history of compliance in sponsorship. These sponsors enjoy several benefits, including:

  • Faster Processing Times: Applications for both sponsorship and visas are prioritized.
  • Streamlined Processes: Reduced documentation requirements for future applications.

3. Labour Agreements

Labour agreements are customized arrangements between employers and the Australian government. These agreements are particularly beneficial for specific industries or regional areas. They offer flexibility in:

  • Occupations not included in the standard skilled occupation lists.
  • English language proficiency requirements.
  • Salary thresholds and other visa conditions.

Who You Can Sponsor

Sponsorship doesn’t only depend on the job; the worker you intend to sponsor must meet the required eligibility criteria for the relevant visa category.

Worker Eligibility Requirements

1. Skills and Qualifications

The worker must possess the necessary skills or formal education for the role. In many cases, they will also need a positive skills assessment from a recognized authority, such as:

  • Engineers Australia for engineering roles.
  • Trades Recognition Australia (TRA) for skilled trade positions.

2. English Language Proficiency

Most visa types require workers to meet minimum English language proficiency standards, which are typically demonstrated through tests such as:

  • IELTS (International English Language Testing System)
  • PTE (Pearson Test of English)
  • TOEFL (Test of English as a Foreign Language)

3. Health and Character Checks

All sponsored workers must:

  • Pass medical examinations to meet Australia’s health requirements.
  • Provide police clearance certificates to confirm their good character.

Who Can’t Be Sponsored?

Certain workers or occupations may not qualify for sponsorship. These include:

  • Workers without the necessary qualifications, skills, or experience for the job.
  • Occupations not listed on the eligible skilled occupation lists, such as the Medium and Long-term Strategic Skills List (MLTSSL), Short-term Skilled Occupation List (STSOL), or Regional Occupation List (ROL).

After ensuring both the employer and the worker meet the eligibility criteria, you can explore the appropriate visa options to proceed with the application process.

Important Sponsorship Visa Categories
mportant Sponsorship Visa Categories

Australia offers a range of visa options for employers to sponsor skilled workers. Below are the most relevant visas to consider:

1. Temporary Skill Shortage Visa (Subclass 482)

The Temporary Skill Shortage Visa (Subclass 482) is one of the most commonly used visas for employee sponsorship. It allows businesses to hire overseas workers for up to four years, depending on the stream:

  • Short-term Stream:
    For roles listed on the Short-term Skilled Occupation List (STSOL).

    • Valid for two years and can be renewed once.
    • Typically suited for addressing immediate, short-term skill shortages.
  • Medium-term Stream:
    For roles listed on the Medium and Long-term Strategic Skills List (MLTSSL).

    • Valid for up to four years.
    • Provides a pathway to permanent residency, making it an attractive option for both employers and workers.

2. Employer Nomination Scheme Visa (Subclass 186)

The Employer Nomination Scheme Visa (Subclass 186) is a permanent visa that allows skilled workers to stay and work in Australia indefinitely.

Key Requirements:

  • The worker must be nominated by an employer.
  • The worker must have at least three years of relevant experience in their field.

This visa is ideal for businesses seeking to fill critical roles with long-term solutions while offering employees the stability of permanent residency.

3. Designated Area Migration Agreement (DAMA) Visas

The DAMA Visa is specifically designed for regional businesses, providing additional flexibility to sponsor skilled workers.

Key Features:

  • Concessions: Lower thresholds for English language proficiency, salary requirements, and eligible occupations.
  • Regional Focus: Tailored for remote or regional areas where labor shortages are more pronounced.

This visa is an excellent choice for employers outside major metropolitan areas who need to attract talent to support regional growth and development.

After selecting the appropriate visa for your needs, the next step is to navigate the application process efficiently.

The Sponsorship Application Process: A Step-by-Step Guide

The Sponsorship Application Process: A Step-by-Step Guide

Sponsoring a foreign worker in Australia requires a well-organized approach. The process involves several steps, each demanding careful attention to detail to ensure a smooth application. Here’s a comprehensive walkthrough to guide you:

Step 1: Register as a Sponsor

Before sponsoring a worker, your business must register as an approved sponsor.

  • How to Apply:
    Register online via the ImmiAccount portal.
  • Documents Required:
    • Australian Business Number (ABN)
    • Financial statements
    • Evidence of business operations (e.g., contracts, invoices)
  • Processing Time:
    Typically takes 2–3 months for standard processing.
  • Cost:
    Approx. AUD 420, depending on the type of sponsorship.

Step 2: Nominate the Worker

Once your sponsorship is approved, you’ll need to nominate the worker for the role.

  • Details to Include in the Nomination Application:
    • Job title, responsibilities, and salary details.
    • Proof that the role cannot be filled locally, including Labour Market Testing (LMT):
      • Advertise the position on multiple platforms for at least 28 days.
      • Provide a recruitment report detailing efforts to hire locally and why they were unsuccessful.
  • Processing Time:
    Approval usually takes 1–2 months.
  • Cost:
    Approx. AUD 330.

Step 3: Worker Applies for a Visa

The final step involves the worker submitting their visa application.

  • Documents Required:
    • Passport and identity documents
    • Proof of qualifications and skills
    • Results from health checks and English language tests
  • Additional Requirements:
    • Some occupations may require a positive skills assessment from an authorized body, such as Engineers Australia or Trades Recognition Australia (TRA).
  • Visa Costs:
    • Short-Term Stream: AUD 1,495 for the primary applicant.
    • Medium-Term Stream: AUD 3,115 for the primary applicant.
  • Processing Time:
    Visa applications generally take 2–4 months to process.

Exemptions and Regional Variations

For businesses operating in regional areas, concessions may apply under the Designated Area Migration Agreement (DAMA). These agreements provide flexibility, including:

  • Reduced English language proficiency requirements.
  • Lower salary thresholds.
  • Additional eligible occupations beyond the standard Skilled Occupation Lists.

Total Costs and Timelines

On average, the entire process—including sponsorship, nomination, and visa application—takes 4–6 months and costs upwards of AUD 5,000, depending on the visa type.

Why Sponsorship is Worth It

Sponsoring a foreign worker is more than a solution for skill shortages—it’s an investment in your business’s growth and innovation.

Key Benefits for Employers

  • Address Skill Gaps: Fill critical roles with top global talent.
  • Foster Innovation: Bring diverse perspectives to your workplace.
  • Enhance Competitiveness: Stay ahead in your industry with a skilled workforce.

Opportunities for Employees

For workers, Australian sponsorship is a chance to grow professionally while enjoying life in one of the world’s most desirable countries.

Ready to Start Your Sponsorship Journey?

At Knowbal Immigration, we specialize in making the sponsorship process seamless and stress-free. Let us guide you through each step, ensuring your application’s success.

Contact us today to turn your sponsorship plans into a reality!

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