Employer Guide: How Melbourne Businesses Become a Standard Business Sponsor

Many Melbourne employers struggle to fill skilled roles from the local market. As a result, they look overseas for qualified workers. However, you cannot simply hire someone from abroad and put them to work. First, your business must become an approved sponsor. This guide explains how the process works. It also covers the real costs and your ongoing duties. As a result, you can plan each step with confidence.

What is a Standard Business Sponsor?

A Standard Business Sponsor is a business approved by the Department of Home Affairs to nominate skilled overseas workers. In most cases, that approval lets you sponsor workers for the Skills in Demand visa (subclass 482). Because the sponsorship sits with your business, you can nominate several workers under one approval.

For a full overview of the visa, read our pillar guide to the Skills in Demand visa (subclass 482). It explains the Core Skills and Specialist Skills streams in detail.

Who can apply to become a sponsor?

The rules focus on whether your business is genuine and well run. First, you must operate a lawfully established and currently active business. Then the Department checks that there is no adverse information about your business or the people who run it. For example, unpaid tax debts or workplace breaches can count against you.

In addition, you must show a genuine need for the position. Therefore, keep your organisational chart, financial records, and job description ready. Because the Department reviews the whole picture, strong evidence helps your application move smoothly.

The three steps to sponsor a worker

Sponsorship happens in three separate stages. As a result, it helps to plan all three before you start.

Step 1: Become an approved sponsor

First, you lodge a sponsorship application with Home Affairs. In this step, you prove that your business is real, active, and lawfully operating. Once approved, your standard business sponsorship stays valid for a multi-year period set by the Department. During that time, you can nominate more than one worker.

Step 2: Nominate the position

Next, you nominate the specific role you want to fill. Here you link the position to an eligible occupation and to the worker. In addition, you must show that the pay and conditions meet Australian standards. For a detailed breakdown, see our 482 visa requirements checklist.

Step 3: The worker applies for the visa

Finally, the worker lodges their own subclass 482 visa application. At this stage, they provide skills, health, and character evidence. You can lodge all three stages together. However, many employers submit the sponsorship first to confirm approval.

What sponsorship costs

Three charges usually apply to a sponsored role. First, you pay a government sponsorship application charge. Then you pay a nomination charge for each position you nominate. On top of that, you pay the Skilling Australians Fund (SAF) levy.

The SAF levy is the largest cost for most employers. A small business here means one with annual turnover below $10 million. For that business, the levy is $1,200 for each year of the nominated period. For a larger business, the levy rises to $1,800 per year. For example, a four year nomination by a small business adds $4,800 in levy alone. As a result, the levy can dwarf the application charges.

Government application charges also change from time to time. Therefore, always confirm the current sponsorship and nomination charges before you budget. The Home Affairs “Cost of sponsoring” page lists the latest figures.

Your obligations as a sponsor

Sponsorship brings ongoing legal duties. Because these obligations bind your business, take them seriously from day one. First, you must keep accurate records and cooperate with any Home Affairs inspector. Then you must ensure the worker’s terms match those of local staff in the same role.

Importantly, you must not pass certain costs on to the worker. This covers the sponsorship charge, the nomination charge, and the SAF levy. Also, you must tell the Department when key facts change. For example, report when the worker leaves or the business restructures. As a result, good internal systems protect you from unintended breaches.

Common mistakes Melbourne employers make

Some errors appear again and again. For example, employers underestimate the SAF levy and budget only for the application charges. Others nominate a role that does not match an eligible occupation. Then the nomination stalls or fails.

Another frequent issue involves weak evidence of a genuine position. Because the Department wants to see a real business need, a thin job description can trigger questions. If your business cannot meet the sponsorship rules, a regional agreement may suit you better. In that case, read our guide to Designated Area Migration Agreements.

Plan ahead before you apply

Preparation saves time and money. First, map out the role and confirm it sits on a current occupation list. Then gather your financial statements, business registration, and organisational chart. Because the Department reviews genuine need, clear records help your case.

Next, budget for the full cost, not just the application charges. As shown above, the SAF levy often forms the biggest expense. In limited cases, you may later qualify for a refund of the levy. For example, a refund can apply where the visa is refused on certain grounds. However, the refund rules are narrow, so plan around the full amount.

Finally, think about timing. Melbourne employers often need the worker to start quickly. Therefore, start the sponsorship early and keep your evidence organised. As a result, you reduce the risk of delay and repeated requests for information.

Frequently asked questions

What is a Standard Business Sponsor?

It is a business approved by Home Affairs to nominate skilled overseas workers. That usually means the subclass 482 visa. One approval can cover several nominations.

How long does a standard business sponsorship last?

The approval stays valid for a multi-year period set by the Department. During that time, you can nominate more than one worker. Check the current term on the Home Affairs website before you apply.

How much does it cost to sponsor a 482 worker?

You pay a sponsorship charge, a nomination charge, and the SAF levy. For a small business with turnover below $10 million, the levy is $1,200 per year of the nomination. For larger businesses, it is $1,800 per year.

Can I pass sponsorship costs on to the worker?

No. You must not recover the sponsorship charge, the nomination charge, or the SAF levy from the worker. Doing so breaches your sponsorship obligations.

Do I need a new sponsorship for every worker?

No. A single standard business sponsorship can support several nominations while it remains valid. However, you lodge a separate nomination for each position.

By Sam Kanjo, Migration Lawyer, Skyline Migration Lawyers, Melbourne.

Talk to a migration lawyer in Melbourne

Thinking about sponsoring a skilled worker? Our team can guide your business through each stage. Call us on 03 8108 8748 or email info@skylinemigrationlawyers.com.au to arrange a consultation.

This article provides general information only. It is not legal advice and does not account for your personal circumstances. For advice about your situation, please contact a registered migration lawyer or agent. Fees and requirements can change, so confirm current figures with the Department of Home Affairs before you act.