How job sponsor visa Australia works
Job sponsor visas in Australia allow employers to hire skilled overseas workers for positions that can’t be filled by local talent.
Sponsoring skilled overseas workers involves a three-step process for all Australia visa sponsored jobs:
- Employer sponsorship approval
- Nomination of the position
- The visa application
Employing an overseas skilled worker can take months from business sponsorship approval through to a visa application decision. The processing time will depend on which visa subclass and stream is being applied for. Let’s figure out sponsor work visa process, standard business sponsor requirements, standard business sponsorship application.
Visa options at a glance: 482, 186 and 494 compared
There are three visa options available for skilled sponsored workers. They are:
- Skills in Demand Visa (subclass 482)
- Employer Nomination Scheme (subclass 186)
- Skilled Employer Sponsored Regional (Provisional) Visa (subclass 494)
The following table outlines the key features of each of these visa subclasses.
| Skills in Demand Visa (subclass 482) | Employer Nomination Scheme (subclass 186) | Skilled Employer Sponsored Regional (Provisional) Visa (subclass 494) | |
|---|---|---|---|
| Streams |
|
|
|
| Temporary / Permanent | Temporary | Permanent | Temporary |
| Pathway to PR | Yes after 2 years (186 visa required) | Yes after 3 years (applicants can make a 191 application themselves) | |
| Visa Validity | Up to four years (five years for Hong Kong passport holders) | N/A | Up to five years |
Who can sponsor and who can be sponsored
Employers who have been approved as a business sponsor can sponsor skilled workers. Any legally established and operating business can apply to be a business sponsor.
Certain employers may be eligible for accreditation. Accredited sponsors receive priority when processing Skills in Demand (subclass 482) visas or Skilled Employer Sponsored Regional (subclass 494) visas.
Approved business sponsors can sponsor skilled workers who are:
- Living overseas and wish to travel and work in Australia
- Already living in Australia on another type of visa which doesn’t allow them to work
- Already living and working in Australia on another visa
Approved sponsors can also take over the sponsorship of anyone holding a Temporary Skills Shortage visa (the previous version of the subclass 482).
Step-by-step for employers: sponsor, nominate, apply
To sponsor skilled overseas workers, employers must perform the following steps.
Step 1: Apply to become an approved business sponsor
Employers will need to prove they are legally operating an established business in Australia.
Step 2: Nomination
The employer needs to nominate the position or occupation to be filled, specifying the position on offer, the salary, work conditions, and other relevant information.
Step 3: Visa application by candidate
The visa applicant will need to lodge the visa application ensuring that all documentation is included. The applicant will need to demonstrate they have the necessary skills, qualifications and work experience to fill the role successfully.
Key requirements: occupation lists, skills, English and salary
Occupation lists
Each of the employer-sponsored visas has a relevant occupations list. Occupation lists can be found on the Department of Home Affairs website.
English language requirements
Each visa subclass has a required level of English language proficiency. There are a number of English language test providers offering different tests. The visa the applicant is applying for will determine English language requirements.
Salary
As part of the standard business sponsor requirements, employers need to ensure that sponsored workers are being paid the annual market salary rate (AMSR) or a salary in line with the relevant income thresholds – whichever is higher.
The Temporary Skilled Migration Income Threshold (TSMIT) applies to the Skilled Employer Sponsored Regional (Provisional) visa (subclass 494) and the Regional Sponsored Migration Scheme (RSMS) (subclass 187).
The Core Skills Income Threshold (CSIT) and the Specialist Skills Income Threshold apply to the Skills in Demand (subclass 482) visa’s Core Skills Stream and Specialist Skills Stream, respectively. The Labour Agreement Stream is usually in line with the CSIT and TSMIT, however concessions may apply on a case-by-case basis.
Costs and who pays: SAF levy, nomination and visa charges
There are a number of fees that apply when sponsoring skilled overseas workers.
Employers are solely responsible for the following costs:
- Business sponsorship application fees
- Nomination fees
- Skilling Australians Fund (amount depends on the size of the business)
- Migration agent / legal fees
- Recruitment costs
- Travel and relocation costs for the applicant and their family
Applicants are responsible for:
- Visa application fees
- English language testing
- Skills assessments
- Health and police checks
- Biometrics
However, businesses can choose to cover visa-related fees if they want to.
Processing times, visa length and work rights
Processing times
Processing times for each of these visas varies. Temporary visas such as the 482 are usually finalised in a few months depending on the applicant’s location, occupation, salary, and departmental priorities. Subclass 186 visas can take up to 2 years, with applicants commonly utilising bridging visas to remain lawfully in Australia while they process. Visa applications are assessed on a case-by-case basis.
The following factors can affect visa application processing times:
- Whether a complete application was lodged with all necessary supporting documentation
- How quickly applicants respond to requests for additional information
- How long it takes to perform the required checks on the supporting information provided
- How long it takes to receive additional information from external agencies, particularly in relation to health, character and national security requirements
Once an application is lodged, applicants can get an indication of processing times using the visa processing time guide tool.
Standard visa duration
The length of stay for each of the employer-sponsored visas is as follows:
- Skills in Demand (subclass 482) visa: stay up to four years (five years for Hong Kong passport holders)
- Skilled Employer Sponsored Regional (Provisional) Visa (subclass 494): stay up to five years
- Employer Nomination Scheme (subclass 186): stay permanently
Work rights
Holders of subclass 482 and 494 visas must only work for their approved sponsor in their nominated occupation.
Holders of a Skilled Employer Sponsored Regional (Provisional) Visa (subclass 494) must live and work in a designated regional area.
As permanent residents, holders of a subclass 186 visa have unrestricted work rights, however it is expected that they will work for their nominated employer for at least two years.
Pathways to permanent residence from sponsorship
Holders of a subclass 482 may be eligible to apply for permanent residence through the Employer Nomination Scheme (subclass 186) in the transitional stream after 2 years holding a subclass 482 visa.
Holders of a Skilled Employer Sponsored Regional (Provisional) visa (subclass 494) may be eligible to apply for permanent residence independently once they have held their subclass 494 visa for three years.
Labour Agreements
A labour agreement is a formal contract between Australian employers and the Australian Government. Labour agreements enable approved business sponsors to sponsor skilled overseas workers when there is a demonstrated need that can’t be met in the Australian labour market and where the standard temporary or permanent visa programs are not available.
Labour agreements can be granted under one or more of the following visa programs:
- Skills in Demand (subclass 482) visa
- Employer Nomination Scheme (subclass 186) visa
- Skilled Employer Sponsored Regional (Provisional) (subclass 494) visa
There are three main types of labour agreements:
- Industry labour agreements
- Designated Area Migration Agreements (DAMA)
- Company Specific labour agreements
There are currently ten industry agreements in place:
- Advertising
- Aged care
- Dairy
- Fishing
- Horticulture
- Meat
- Minister of Religion
- On-hire
- Pork
- Restaurant (premium dining)
Sponsor obligations and compliance essentials
As a business sponsor, an employer must provide a safe workplace as well as legal pay rates, leave conditions and shift arrangements. They must provide payslips, superannuation and taxation documents to their employees. In addition, they must also:
- Advise the Department of Home Affairs when certain events occur. Changes such as any changes to business names, partnerships, financials or changes related to the employee’s job must be communicated in writing
- Ensure employees only work in their nominated occupation
- Ensure terms and conditions of employment are the same as those of an equivalent Australian worker
- Not engage in discriminatory recruitment practices
- Keep all records that show compliance with sponsorship obligations
- Provide records and information to DHA officers if requested
- Assume all costs associated with becoming a sponsor and sponsoring an overseas skilled worker
- Pay travel and relocation costs for sponsored workers
- Pay costs to locate and remove an unlawful citizen if the sponsored employee or any of their family members become unlawful
- Cooperate with inspectors if the business is investigated in relation to business sponsorship compliance
Common pitfalls and how to avoid them
There are a lot of factors that need to be considered and tasks to be completed when sponsoring a skilled overseas worker. Some of the pitfalls of the employer-sponsored visa application process are:
- Insufficient or incorrect labour market testing
- Incorrect occupation selection (mismatch with skills lists)
- Incorrect salary levels
- Missing documents and/or inconsistent information
To avoid these common mistakes, it is recommended that employers and applicants seek assistance from a registered migration agent. In addition, using checklists and other templates or data checking processes can help eliminate these errors and will help reduce delays in visa processing.
Next steps and useful tools
Employers wanting to fill labour shortages using employer-sponsored visas should visit the Department of Home Affairs website to view the process for becoming an approved business sponsor. Information relating to occupation lists, the Skilling Australians Fund levy and other important information can also be found here.
To speak to an experienced registered migration agent, contact the team at Visa Solutions Australia. Book a consultation.
Disclaimer: Information is general guidance and not legal advice. Check the current Australian Government rules or consult with a registered migration agent.
Frequently Asked Questions
The employer (sponsor) is legally required to pay the Skilling Australians Fund (SAF) levy at the nomination stage. This cost cannot be passed on to the visa applicant.
Yes. Most 482 holders can now transition to PR via the 186 TRT stream after working for their sponsor for 2 years.
Yes. You have 180 days to find a new sponsor if you leave your job. You must notify the Department of Home Affairs of any changes. Your new employer must lodge a nomination to take over sponsorship of your visa.
Yes. There is no minimum number of employees or turnover required. The business must simply be:
- Legally operating and financially viable
- Able to prove a genuine need for the role
- Able to pay the market salary rate (AMSR) or salary minimums for the type of visa
Applicants of the subclass 482, 186 and 494 visa must meet minimum language requirements. English language proficiency levels as well as the various English test available can be found on the Department of Home Affairs website. Applicants holding certain passports are exempt.
