How to sponsor an employee in Australia? Everything employers need to know.

Do you have a good overseas employee, but their visa is expiring soon? Do you want to hire skilled overseas employees not readily found in your location of business?

Then you can do something about it: sponsor the employee.

If you fall under any of them but don’t know the process for sponsoring an employee, then you are in the right place. In this blog, we cover the entire process of sponsoring an employee. Let’s begin.

If you are a legally established, currently operating business, you can sponsor an overseas employee. The role of the overseas employee must be on the Skilled Occupation List. If not, you can sponsor an employee through a labour agreement. More on them later.

Eligible employers can sponsor an employee on:

• Skill in Demand subclass 482 visa
   
• Employer Nomination Scheme subclass 186 visa
   
• Skilled Employer Sponsored Regional (Provisional) subclass 494 visa
   

There are mainly 3 types of sponsors in Australia:

• Standard Business Sponsor: They can employ employees on the Skill in Demand subclass 482 visa and the Skilled Employer Sponsored Regional (Provisional) subclass 494 visa.
   
• Accredited Sponsor: They are basically standard business sponsors, with one difference: higher processing priority.
   
• Temporary Activity Sponsor: They can sponsor employees under subclass 403, 407, and 408 visas. 

Let’s now understand the requirements to be a sponsor:

Requirements to be a Standard Business Sponsor:

1) Proof of a legally established business.

Employers can include either:

• Australian Business Number registration certificate
   
• Australian Registered Body Number registration certificate
   
• Registration certificate in the country of registration if not currently operating in Australia
   

If the business has a registered business or trading name, provide a copy of the business name details extract from the Australian Securities and Investments Commission’s (ASIC) business name register.

If your business is a company, provide either a business name extract from the ASIC business name register or Australian Stock Exchange (ASX) listing registration (if applicable).

For trusts, joint ventures, and franchises, provide the signature page and the pages listing parties.

For a business party to a trust arrangement: provide the application in the name of the trustee as it appears on the trust deed, and specify the trust name and trust ABN.

2) Proof of current operation.

For larger or established business:

• P/L statements
   
• Annual report for the most recently concluded financial year
   

For small or recently established business:

• Tax report for the most recently concluded financial year
   
• Recent business activity statements (BAS)
   
• Recent bank statements
   

For a new business, provide (at the minimum) the business plan that includes:

• Contracts to provide services to the business
   
• Business bank statements (covering period of operation)
   

A new business can also provide:

• Contract of sale (purchase of business where settlement has occurred)
   
• Lease agreement for business premises
   
• Evidence of employment of staff
   
• BAS for each quarter from establishment of business
   

For businesses not yet operating in Australia, show intention to set up in Australia or obligation to set up in Australia:

• Business expansion plan
   
• An agreement to enter into a joint venture
   
• Contract between the business and a party in Australia
   

3) Attestation

Must attest in writing that they have a strong record of, or demonstrated commitment to employ local labour. They must also attest that they will not engage in discriminatory recruitment practices.

Requirements to be an Accredited Sponsor:

First, be a Standard Business Sponsor. Then, meet any of the following categories:

• Australian government (Commonwealth, state or territory) department or agency.
   
• Australian Trusted Trader.
   
• Low-volume user with a high percentage of Australian workers (at least 85%).
   
• High-volume user and has a medium percentage of Australian workers (at least 75%).
   
• Major investor in Australia.
   
• STEM Start-up business with venture capital funding.
   

Requirements to be a Temporary Activity Sponsor:

To be a Temporary Activity Sponsor, you must:

• Be a certain kind of business. An organisation registered as a trust cannot be this type of sponsor. So, the trust trustee must apply for and be approved as this sponsor.
• Be able to meet your obligations.
   
• Have a good business record.
   
• Obey Australian laws.
   
• Other requirements for the required visas.
   

Employers can sponsor an employee for a role not listed on SOL through a labour agreement.

A labour agreement is an agreement between the business (or industry) and the Department of Home Affairs. It covers positions (not readily available in Australia) or when standard temporary or permanent visa programs are unavailable. Currently, industries such as aged care, dairy, meat, advertising and horticulture have agreements with the government.

A labour agreement generally lasts 5 years. It includes visas, such as:

• 482 visa
• 494 visa
• 186 visa

A labour agreement makes it easier to sponsor overseas workers, as one employer can sponsor multiple overseas employees. Of course, you must meet other requirements. Consult with experts to learn more.

Let's dissect the costs to sponsor an employee (employer-side costs):

Things to consider before becoming a sponsor (employer-side requirements) are:

• Labour Market Testing: The sponsor must test whether local labour can fulfil the given position. It generally involves advertising the position in Australia.
   
• Employer-side costs (non-refundable), such as the SAF levy, nomination fee, etc.
   
• Generally, employment must be valid for the contract (stipulated time) or for a minimum of 2 years.
   
• Employers must offer at least 79,423 AUD to meet the income threshold.
   
• Employers must notify the Australian government of changes to the terms and conditions for overseas employees (such as ceasing to be an employee, change in duties, not working with the employer, etc.) or changes in business circumstances (such as bankruptcy, insolvency, liquidation, etc.). This obligation is valid for 2 years (after sponsorship or agreement ends, or no longer employ the overseas worker). Changes must be notified within 28 days.
   
• Employers must make sure the employee works only in the nominated position. This obligation ends at the earliest of the end of employment, a change of sponsor, the employee has other visas, or the employee leaves Australia (other substantive visa not in effect).
   
• Terms and conditions for sponsored overseas employees must be the same as those for Australian citizens.
   
• Employers must not engage in discriminatory recruitment practices.
   
• Employers must keep records of the employee. Provide them to the government if requested.
   
• Employers must bear costs themselves (such as becoming a sponsor, nomination charges, migration agent costs related to sponsoring). Employers must pay the recruitment costs (such as advertising, screening, etc.).
   
• Employers must pay the travel costs to leave Australia.
   
• Employers must reimburse the government for the relocation costs of an unlawful non-citizen.
   
• Employers must co-operate with inspectors.
   
• Others as specified by the government.
   

Generally, it takes around 3 to 14 months (or longer) depending on the position, visa, and personal circumstances. Temporary visas typically have shorter processing times.

If an employer can prove, beyond a reasonable doubt, that they couldn’t fill the employment gap with Australian citizens or PR holders, they can sponsor an overseas employee. The nominated position must be on the skilled occupation list (except labour agreements) to work temporarily or permanently.

An employer can sponsor anyone:

• who wishes to travel and work in Australia, or
   
• someone who is already in Australia on a visa that doesn’t let them work, or
   
• someone who is already working in Australia on a different visa, or
   
• employees who fall under subclass 457 and 482.
   

Employer(s) may not need to sponsor an employee who already has work rights or can directly apply for a visa themselves.

To put it briefly, the process for sponsoring an employee is:

Step 1: Employers must look for Australian citizens/PR holders who qualify for the given position.

If they don’t find any, use that as evidence. Other requirements may include:

• Labour Market Testing
   
• Tax records
   
• P/L and balance sheets
   
• Local workers in employment (certain percentage).
   
• BAS statements
   
• A letter from the company’s accountant
   
• ASIC registration
   
• ABN/ACN documentation
   
• Lease agreements
   
• Bear employer-side costs, such as SAF levy, approved sponsor application, nomination, etc.
   
• Others as required.
  
  Step 2: The nominated occupation must be on the Skilled Occupation List (except for labour agreements).
  Step 3: Employees generally collect the required documents.
  Step 4: Become an approved sponsor (after meeting all the requirements).
  Step 5: Nominate the position.
  Step 6: Responsibilities of employees (nominees). Apply for the visa.

Sponsoring an overseas employee can be complex. Employers must fulfil requirements and cover costs. But employers don’t have to do it alone. They can and should seek guidance from experts. One of the best experts is Search Education.

We are an ethical migration agent with a long track record of integrity and honesty. We have over 10 years of experience guiding both employers and employees toward their goals. Our MARA-registered migration agents provide expert guidance throughout the sponsorship process. We help you assess your eligibility, understand employer sponsorship requirements, prepare the required documentation, and submit a strong application. From your initial consultation to the final visa decision, we're with you every step of the way.

Book a consultation today and let Search Education help you navigate the sponsorship process with confidence.

• https://immi.homeaffairs.gov.au/visas/employing-and-sponsoring-someone/sponsoring-workers/becoming-a-sponsor
• https://immi.homeaffairs.gov.au/visas/employing-and-sponsoring-someone/sponsoring-workers/learn-about-sponsoring/how-to-sponsor-a-worker
• https://immi.homeaffairs.gov.au/visas/employing-and-sponsoring-someone/labour-agreements
• https://immi.homeaffairs.gov.au/visas/employing-and-sponsoring-someone/sponsor-responsibilities