General Sponsorship Basics

Becoming a sponsor allows an Australian business to recruit skilled workers from overseas when they cannot find a suitable local candidate. This process involves specific legal frameworks and departmental approvals.

What is a Standard Business Sponsor (SBS)?

A Standard Business Sponsor is a business approved by the Department of Home Affairs to hire overseas workers under the Temporary Skill Shortage (TSS) visa (subclass 482). To qualify, a business must demonstrate it is lawfully operating and has no known history of adverse dealings.

• Validity: SBS status is generally valid for five years.
• Scope: Once approved, the business can nominate multiple workers during the validity period.
• Accreditation: High-volume sponsors with a clean track record may apply for 'Accredited Status' to receive priority processing.

Visa Pathways and Recruitment

Choosing the correct visa pathway is critical to ensuring the candidate has the right work rights and the business meets its long-term staffing goals.

What are the most common employer-sponsored visas?

There are three primary streams used by Australian employers to bridge the skills gap:

• Subclass 482 (TSS): A temporary visa allowing workers to stay for 2 to 4 years depending on the occupation list.
• Subclass 186 (ENS): A permanent residency pathway for highly skilled workers.
• Subclass 494 (SESR): A regional visa for employers operating in designated regional areas of Australia.

Note: Each visa subclass has distinct requirements regarding minimum salary levels (TSMIT), English language proficiency, and work experience.

Employer Obligations and Compliance

Sponsoring an overseas worker brings a set of legally binding obligations. Failure to comply can result in significant fines, bars on future sponsorship, or the cancellation of existing visas.

What are the primary sponsorship obligations?

Employers must adhere to strict guidelines to ensure the integrity of the migration program:

• Equivalent Terms and Conditions: You must provide the same pay and working conditions to the sponsored worker as you would to an Australian worker in the same role.
• Record Keeping: Maintain detailed records of the worker’s employment, including payroll and duties performed.
• Notification: Inform the Department of Home Affairs within 28 days if the worker’s employment ends or their role changes significantly.
• Travel Costs: If requested in writing by the worker or the Department, the employer may be liable for the reasonable costs of the worker (and their family) leaving Australia.

Costs, Levies, and Processing Times

Understanding the financial commitment is essential for business planning. Costs are divided between government fees, mandatory levies, and professional service fees.

What is the Skilling Australians Fund (SAF) Levy?

The SAF levy is a mandatory tax paid by employers for each overseas worker they nominate. These funds are used to support the training of Australian citizens and permanent residents.

• Temporary Visas (482): The levy is calculated per year of the visa duration.
• Permanent Visas (186/494): A one-time flat fee is paid at the time of nomination.
• Refunds: SAF levies are generally non-refundable, except in very limited circumstances such as a visa refusal based on health or character.

Can the employer pass costs onto the worker?

No. It is illegal for an employer to recover the costs of the sponsorship application or the SAF levy from the visa applicant. The business must bear these costs as part of the recruitment process.