Updated: 23 October 2026
If your Australian business wants to employ an overseas skilled worker, you will generally need to sponsor them for an appropriate work visa. The most common option is the Skills in Demand visa (subclass 482), which allows Australian employers to sponsor eligible overseas workers for up to four years.
Sponsoring an employee involves three main steps: obtaining Standard Business Sponsorship approval, nominating the position you want to fill, and applying for the employee’s visa.
In this guide, we explain how the sponsorship process works, what your business needs to demonstrate, and the requirements and costs involved.
How Does Employer Sponsorship Work in Australia?
Employer sponsorship allows Australian businesses to recruit skilled workers from overseas, or sponsor eligible temporary visa holders who are already in Australia.
The most common temporary employer-sponsored visa is the Skills in Demand visa (subclass 482), which replaced the Temporary Skill Shortage (TSS) visa in December 2024.
The subclass 482 visa allows eligible overseas workers to work in Australia for an approved employer, generally for a period of between one and four years.
For most employers, the process involves three separate applications:
- Sponsorship: Your business becomes approved to sponsor overseas workers.
- Nomination: Your business nominates a skilled position and demonstrates that it meets the relevant requirements.
- Visa application: The employee demonstrates that they have the necessary skills, experience and other qualifications to obtain the visa.
Although these applications are connected, each has its own legal requirements. Depending on the circumstances, they may be prepared and lodged concurrently, although the necessary approvals must be obtained before the visa can be granted.
Step 1: Become a Standard Business Sponsor
Before your business can sponsor an employee under the subclass 482 program, it must generally be approved by the Department of Home Affairs as a Standard Business Sponsor (SBS).
This is a business-level approval, meaning that you do not need to apply for a new sponsorship approval every time you hire another overseas worker.
Once granted, Standard Business Sponsorship generally remains valid for five years.
To obtain approval, your business must satisfy two principal requirements.
1. Operate a Lawful Business
Your business must be legally established and actively operating.
The Department will generally require evidence of the business’s legal structure and trading activities. Depending on the business, this might include:
- ASIC company registration records.
- Australian Business Number (ABN) details.
- Financial statements or tax records.
- Business bank statements.
- Evidence of trading activities.
- Details of the business’s employees and operations.
Businesses do not necessarily need to be large or well-established to become sponsors. Startups and smaller businesses may also qualify, provided they can demonstrate that they satisfy the applicable requirements.
2. Have No Relevant Adverse Information
The Department must also be satisfied that there is no relevant adverse information concerning the business or certain persons associated with it, unless it is reasonable to disregard that information.
Adverse information may concern matters such as breaches of Australian laws, insolvency, or providing false or misleading information to government authorities.
Once your sponsorship is approved, your business can generally use that approval to sponsor eligible employees during its five-year validity period.
You can read more about the requirements in our guide to Standard Business Sponsorship.
Step 2: Nominate the Position
The second stage is the nomination application.
While sponsorship approval concerns your business, the nomination concerns the particular position you wish to fill.
The purpose of the nomination is to demonstrate that the proposed role satisfies the requirements of the subclass 482 visa program.
This is often the most technically demanding part of the sponsorship process.
The Position Must Be an Eligible Occupation
Your business must identify an occupation that accurately reflects the position being offered.
Under the Core Skills stream of the subclass 482 visa, the nominated occupation must appear on the relevant Core Skills Occupation List (CSOL).
For example, eligible occupations may include certain accountants, software engineers, marketing specialists, chefs, managers and other skilled professionals.
However, a job title alone is not sufficient. The Department considers the actual duties and responsibilities of the position.
Some occupations are also subject to additional restrictions or caveats that must be satisfied.
The Position Must Be Genuine
The Department must be satisfied that the nominated position is genuine.
This means the position must represent a genuine employment opportunity within the business rather than a role created primarily to facilitate a visa application.
Depending on the circumstances, the nomination may need to explain the business’s operations, staffing arrangements and reasons for requiring the position.
For example, a growing hospitality business seeking to sponsor a chef may provide information about its trading activities, kitchen operations and existing staffing arrangements.
The Salary Must Meet Migration Requirements
The nominated position must satisfy the applicable salary and employment conditions.
This includes meeting the relevant visa income threshold and the Annual Market Salary Rate (AMSR).
The AMSR reflects what an equivalent Australian employee would receive for performing comparable work in the same location.
For example, if the market salary for a particular occupation is $95,000, an employer cannot necessarily offer a sponsored worker a lower salary simply because it meets the minimum visa income threshold.
The Core Skills and Specialist Skills income thresholds are indexed annually, generally on 1 July.
Employers should therefore confirm the applicable salary requirements before lodging a nomination.
Labour Market Testing
In most cases, an employer must also demonstrate that it has attempted to recruit a suitable Australian worker before nominating an overseas candidate.
This process is called Labour Market Testing (LMT).
For most standard subclass 482 nominations, employers must advertise the position in at least two appropriate advertisements, generally for a minimum of four weeks within the four months immediately before lodging the nomination.
The advertisements must satisfy the Department’s requirements concerning their content, publication and duration.
Exemptions or alternative arrangements may apply in certain circumstances.
Employers should complete any required labour market testing before lodging the nomination, as defective advertising can create problems that cannot simply be corrected after lodgement.
Employment Arrangements
The employer must also demonstrate that the proposed employment arrangement meets the relevant migration requirements.
This commonly involves providing a written employment contract setting out the employee’s position, salary, working hours and other conditions.
The proposed employment must be consistent with the nominated occupation and applicable Australian employment laws.
Step 3: Apply for the Employee’s Visa
The third stage is the employee’s visa application.
While the nomination focuses on the business and the position, the visa application focuses on the individual employee’s eligibility.
For a Skills in Demand visa, the applicant must generally demonstrate that they have the skills and experience necessary to perform the nominated occupation.
This commonly includes:
- Qualifications: Relevant educational or professional qualifications.
- Work experience: Generally at least 12 months of relevant experience in the nominated occupation or a related field.
- English language: Evidence of meeting the applicable English language requirements, unless exempt.
- Skills assessment: A suitable assessment where required for the occupation and applicant.
- Health: Meeting the Department’s health requirements.
- Character: Providing relevant police clearances and satisfying the character requirements.
The precise requirements depend on the employee’s occupation, visa stream and personal circumstances.
For example, some occupations require professional registration or licensing before the employee can lawfully perform the role in Australia.
Eligible partners and dependent children may also be included in the visa application, subject to the relevant requirements and additional charges.
Once the nomination and visa are approved, the employee can commence working in accordance with their visa conditions.
How Much Does It Cost to Sponsor an Employee?
Sponsoring an overseas employee involves government charges for sponsorship approval, nomination and the employee’s visa.
For a standard subclass 482 application, the principal employer-side charges are:
| Government charge | Amount |
| Standard Business Sponsorship application | $420 |
| Subclass 482 nomination application | $330 |
| Skilling Australians Fund levy – business turnover under $10 million | $1,200 per year or part thereof |
| Skilling Australians Fund levy – business turnover of $10 million or more | $1,800 per year or part thereof |
The Skilling Australians Fund (SAF) levy is calculated according to the business’s turnover and the proposed nomination period.
For example, a business with annual turnover below $10 million sponsoring an employee for four years would ordinarily pay:
- Standard Business Sponsorship: $420.
- Nomination application: $330.
- SAF levy: $4,800.
This produces a total of $5,550 in employer-side government charges, assuming the business is applying for Standard Business Sponsorship for the first time.
The employee’s visa application charge, professional fees and other expenses are additional.
Importantly, employers are generally required to pay costs associated with obtaining sponsorship approval, nominating the position and recruiting or sponsoring the employee. These costs cannot lawfully be recovered from the sponsored worker.
The employee may ordinarily pay their own visa application charge and personal application expenses, subject to applicable laws and agreements.
How Long Does It Take to Sponsor an Employee?
The time required to sponsor an employee depends on the circumstances of the business, the nominated occupation and the employee.
Several factors can affect the timeline:
- Whether the business is already an approved Standard Business Sponsor.
- Whether labour market testing is required.
- How quickly the employer can prepare the nomination documentation.
- Whether the employee has the necessary qualifications, experience and English language evidence.
- Whether the Department requests further information.
- The Department’s current processing workload.
If your business already holds sponsorship approval, the first stage does not need to be repeated.
Where labour market testing is required, the advertising period must also be factored into the process.
Although the Department publishes indicative visa processing times, these can change and should not be treated as guaranteed.
Planning ahead is particularly important where the employee is already in Australia and their existing visa is approaching expiry.
Can Employer Sponsorship Lead to Permanent Residency?
Yes. Employer sponsorship can provide a pathway to permanent residency for eligible employees.
While the subclass 482 is a temporary visa, qualifying employees may subsequently be sponsored for permanent residency through the Employer Nomination Scheme (subclass 186).
The subclass 186 visa includes a Temporary Residence Transition stream, which may be available to eligible subclass 482 visa holders after completing the required period of qualifying sponsored employment.
There is also a Direct Entry stream for eligible applicants who satisfy the relevant requirements.
The subclass 186 is a separate permanent visa application with its own eligibility criteria, including applicable age, English language, skills and employment requirements.
Employers considering long-term sponsorship should therefore assess whether the employee may have a suitable permanent residency pathway.
You can read more about this in our guide to the 186 Employer Nomination Scheme visa.
Can a Small Business Sponsor an Overseas Employee?
Yes. Small businesses, including startups, may be eligible to sponsor overseas workers.
There is no general requirement that a business must have a particular number of employees before it can apply for Standard Business Sponsorship.
However, the business must be legally established, actively operating and capable of satisfying its sponsorship obligations.
The nominated position must also meet the relevant requirements concerning the occupation, employment arrangements and salary.
For newer or smaller businesses, the Department may require additional evidence to understand the business’s operations and the nature of the proposed employment.
A properly prepared application can help demonstrate how the position fits within the business and why it is required.
What Happens After the Employee’s Visa Is Granted?
Once the employee’s visa is granted, the employer must continue to comply with its sponsorship obligations.
These include requirements concerning salary payments, employment conditions, record-keeping and reporting certain changes to the Department.
For example, a sponsor must generally notify the Department within 28 calendar days when a sponsored employee ceases employment.
Employers must also ensure that sponsored employees continue to work in accordance with their nominated occupation and relevant visa conditions.
Sponsorship is therefore an ongoing responsibility rather than a process that ends when the visa is granted.
For more information, see our 482 Sponsorship Obligations guide.
How PocketLegal Can Help
Sponsoring an overseas employee can be a complex process. Your business must meet a range of legal requirements and provide well-prepared documentation to the Department of Home Affairs.
We have extensive experience managing employer-sponsored visa applications for businesses across a diverse range of industries, including hospitality, IT, communications, engineering and architecture.
We work with startups, small and medium-sized businesses and larger corporations, managing the sponsorship, nomination and visa application process from start to finish.
Whether your business is sponsoring its first overseas worker or already holds Standard Business Sponsorship approval, we can guide you through the process and make sure that the relevant requirements are addressed.
