How to Sponsor an Employee in Australia: Employer Guide

If your business cannot find the skills it needs locally, sponsoring an overseas worker may be an option. Australian employers can use several visa pathways to fill temporary, permanent and regional skilled positions.

There is no single process for sponsoring an employee in Australia. The steps depend on the visa, occupation, salary, location of the position and the worker's background. For some visas, the business first needs approval as a sponsor. For others, the process centres on the employer nomination.

This guide explains the main employer-sponsored visa options, how the sponsorship process works, the current costs and the responsibilities an employer takes on. 

Disclaimer: This article provides general information only and is not intended as migration or legal advice. Australian migration laws, policies, fees and requirements can change, and the information may not apply to your individual circumstances. For advice specific to your situation, consult a Registered Migration Agent or refer to the latest information from the Australian Department of Home Affairs. 

What Does Sponsoring an Employee Mean?

Employer sponsorship allows an Australian business to nominate an eligible overseas worker for a position that meets the requirements of an employer-sponsored visa. Depending on the visa pathway, the process can involve three separate stages:

1. the employer becoming an approved sponsor, where required
2. the employer nominating the position and worker
3. the worker applying for the relevant visa.

These stages are connected, but they are separate applications with different requirements. For example, the Skills in Demand visa (subclass 482) and Skilled Employer Sponsored Regional visa (subclass 494) commonly require the employer to be a Standard Business Sponsor. The permanent Employer Nomination Scheme visa (subclass 186) does not use Standard Business Sponsorship in the same way and instead relies on the employer meeting the nomination requirements for the relevant stream.

Sponsorship also creates ongoing responsibilities for the employer. These can include paying the correct salary and employment conditions, keeping records, notifying Home Affairs about certain changes and ensuring prohibited sponsorship and recruitment costs are not passed on to the worker.

Main Employer-Sponsored Visa Options

The right visa depends on factors such as whether the position is temporary or permanent and whether the job is located in designated regional Australia.

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Skills in Demand Visa (Subclass 482)

The Skills in Demand visa allows an approved employer to sponsor a suitably skilled worker for temporary employment in Australia. Primary applicants generally need at least 12 months of relevant work experience in their nominated occupation or a related field during the five years before applying.

The visa has Core Skills, Specialist Skills and Labour Agreement streams. Each has its own occupation and salary settings. For a closer look at the current requirements, see Knowbal's Skills in Demand visa subclass 482 guide.

Employer Nomination Scheme Visa (Subclass 186)

The subclass 186 visa is a permanent residence pathway for workers nominated by an Australian employer. Its main streams are Direct Entry, Temporary Residence Transition and Labour Agreement.

Direct Entry applicants generally need at least three years of relevant work experience and a suitable skills assessment unless an exemption applies. The Temporary Residence Transition stream can provide a permanent pathway for eligible subclass 482 and former subclass 457 visa holders who meet the sponsored employment and other requirements.

Home Affairs generally expects a subclass 186 visa holder to work for the nominating employer for at least two years after the visa is granted. The position therefore needs to represent genuine ongoing employment rather than a short-term arrangement.

Skilled Employer Sponsored Regional Visa (Subclass 494)

The subclass 494 visa is designed for employers filling skilled positions in designated regional areas of Australia. It is granted for five years, and the nominated position must generally be genuine, full-time and likely to exist for at least five years.

Applicants in the Employer Sponsored stream generally need at least three years of relevant work experience and a suitable skills assessment unless an exemption applies. Employers can read more about the regional nomination requirements in Knowbal's subclass 494 visa guide.

What About the 407 and 408 Visas?

The Training visa (subclass 407) and Temporary Activity visa (subclass 408) can also involve an Australian organisation acting as a sponsor or supporter, depending on the activity.

They serve different purposes from the main skilled employer-sponsored visas. The subclass 407 is designed for occupational training, while the subclass 408 covers specified temporary activities. They should not be treated as general alternatives for filling an ordinary skilled vacancy.

Who Can Sponsor an Overseas Worker?

For subclass 482 and 494 sponsorship, a business commonly needs to become a Standard Business Sponsor (SBS). To qualify, the business must be legally established and currently operating. Both Australian and certain overseas businesses can apply.

For a business operating in Australia, Home Affairs also requires a strong record of, or demonstrated commitment to, employing local workers and a declaration that the business will not engage in discriminatory recruitment practices. Home Affairs must also be satisfied that there is no relevant adverse information about the business or associated people, unless it is reasonable to disregard it.

A Standard Business Sponsorship generally lasts for five years from the date of approval. Employers can check the current requirements on the official Home Affairs Standard Business Sponsor page or read Knowbal's employer sponsorship overview.

Accredited Sponsorship

Some Standard Business Sponsors can apply for accredited status if they meet the additional requirements for one of the accreditation categories. Accredited sponsors receive priority processing for eligible subclass 482 and 494 nominations and associated visa applications.

There is currently no additional accreditation fee when accredited status is requested as part of a Standard Business Sponsorship application or renewal. Accreditation does not replace SBS approval. It is an additional status available to eligible sponsors.

Labour Agreements

A labour agreement may be relevant where an employer has a genuine workforce need that cannot be met through the standard employer-sponsored visa settings. The agreement sets the occupations and other conditions under which the employer can sponsor overseas workers.

Options can include industry labour agreements and company-specific labour agreements. Designated Area Migration Agreements, commonly called DAMAs, provide separate arrangements for approved regions where local employers may be able to access occupations or concessions available under that particular agreement.

Labour agreements can support nominations under subclasses 482, 186 and 494, but the requirements depend on the terms of the agreement being used.

Who Can You Sponsor?

A worker can be overseas or already in Australia. What matters is whether the position and the worker meet the requirements of the visa pathway the business wants to use.

Depending on the visa and stream, the worker may need to meet requirements relating to:

• qualifications and skills
• relevant work experience
• English language ability
• a skills assessment
• professional registration or licensing
• health and character
• age, particularly for permanent and regional pathways.

For example, a subclass 482 applicant generally needs at least 12 months of relevant work experience, while a subclass 494 Employer Sponsored applicant generally needs three years. A subclass 186 Direct Entry applicant generally needs three years of relevant experience and a suitable skills assessment unless an exemption applies.

If the worker is already in Australia, check their current visa and work conditions through Visa Entitlement Verification Online (VEVO). VEVO shows what the person's existing visa allows them to do. It does not determine whether they qualify for the new visa you want to sponsor them for.

How to Sponsor an Employee in Australia

Step 1: Work Out Which Visa Fits the Position

Start with the position your business needs to fill rather than choosing a visa first. Consider whether the job is temporary or intended to continue permanently, whether it is located in regional Australia and which occupation best reflects the actual duties.

You should also check whether that occupation is available for the visa you are considering and whether the proposed salary can meet the applicable requirements. This can prevent the business from spending money on sponsorship or recruitment steps for a position that cannot be nominated through the intended pathway.

Step 2: Check the Worker Meets the Main Requirements

The worker must be able to meet the requirements of the visa as well as the requirements attached to the nominated occupation. Work experience, qualifications, English, registration and skills assessment requirements vary between visa pathways.

Checking this early is useful because a successful employer nomination does not guarantee that the worker will qualify for the visa. The employer and worker applications are connected, but each has its own criteria.

Step 3: Check the Salary and Market Rate

Employer-sponsored visa programs have salary rules intended to make sure overseas workers are not used to undercut Australian wages. Depending on the visa, the business may need to establish the Annual Market Salary Rate (AMSR). This is based on what an equivalent Australian worker earns, or would earn, for comparable work.

Income thresholds also apply to several employer-sponsored pathways. For nominations lodged from 1 July 2026, the Core Skills Income Threshold is AUD 79,423 and the Specialist Skills Income Threshold is AUD 146,576. The Temporary Skilled Migration Income Threshold used for the subclass 494 program is also AUD 79,423 as of 1 July 2026.

Meeting the relevant threshold does not automatically satisfy the salary rules. The employer must also meet the market salary requirements that apply to the position. These thresholds are indexed, so check the current figures if the nomination will be lodged in a later financial year.

Step 4: Complete Labour Market Testing Where Required

Some employer-sponsored nominations require Labour Market Testing (LMT). This is the process of advertising the position in Australia and providing evidence that the employer tested the local labour market before seeking to fill the role with an overseas worker.

Under the standard rules, the advertising generally needs to take place within the four months before the nomination is lodged. The position must usually be advertised in at least two qualifying advertisements, with applications or expressions of interest accepted for at least four weeks.

The advertising rules include requirements around where the job can be advertised and what information the advertisement must contain. Exceptions and different arrangements can apply in some circumstances, so check the rules before starting the advertising period rather than trying to correct an unsuitable campaign later.

For the full advertising and evidence requirements, see Knowbal's Labour Market Testing guide or the official Home Affairs Labour Market Testing information.

Step 5: Apply for Standard Business Sponsorship if Required

For the standard subclass 482 and 494 pathways, the business commonly needs to hold or have applied for Standard Business Sponsorship. The application is lodged through ImmiAccount and includes evidence that the business is legally established, operating and able to meet its responsibilities as a sponsor.

Once approved, Standard Business Sponsorship generally remains valid for five years. A separate SBS is not normally required simply to nominate a worker for a subclass 186 visa because that permanent visa uses its own employer nomination framework.

Step 6: Nominate the Position and Worker

The employer then lodges the relevant nomination. This is where the business identifies the position and proposed worker and provides the evidence required for that visa and stream.

Depending on the pathway, the nomination can cover:

• the nominated occupation
• the position and duties
• details of the proposed worker
• salary and market salary evidence
• labour market testing
• employment terms
• the business need for the position
• the Skilling Australians Fund levy.

The exact nomination requirements are different for subclasses 482, 186 and 494. Knowbal's employer nomination service provides an overview of the employer-side requirements for each pathway.

Step 7: The Worker Applies for the Visa

The worker lodges a separate visa application and provides the personal and professional evidence required for the visa. Depending on the pathway, this can include identity documents, qualifications, employment records, English results, skills assessment evidence, professional registration, health examinations and police certificates.

The information in the visa application should be consistent with the employer nomination, particularly the occupation, duties and employment history being relied on. The nomination and visa remain separate applications even when they are prepared and lodged around the same time.

What Does It Cost to Sponsor an Employee?

Sponsoring an employee can involve a sponsorship fee, nomination fee and Skilling Australians Fund levy. These are separate from the worker's own visa application charge.

The figures below are current as of September 2026. Government charges can change, so they should be checked again before lodgement.

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The worker's visa application charge is separate from these employer-side costs.

Skilling Australians Fund Levy

Employers may also need to pay the Skilling Australians Fund levy, usually called the SAF levy, when lodging a nomination.

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For a subclass 482 nomination, the SAF levy depends on the proposed visa period. For example, a business with annual turnover below AUD 10 million nominating a worker for four years would generally pay an SAF levy of AUD 4,800.

The subclass 186 and 494 amounts are generally paid as a one-off levy rather than an annual charge. Limited exemptions and refund circumstances can apply.

Which Sponsorship Costs Can Be Passed to the Worker?

Employers cannot make a worker pay for the employer's sponsorship simply because the worker benefits from receiving a visa. Australian migration laws restrict sponsors from recovering or transferring certain sponsorship and recruitment costs to sponsored workers or their family members.

Employers should not pass on costs such as:

• sponsorship application charges
• employer nomination charges
• the SAF levy
• migration agent fees for the sponsorship or employer nomination
• recruitment expenses
• job advertising costs connected with recruiting the sponsored worker.

The worker can still be responsible for their own personal visa application expenses, such as their visa application charge, health examinations or personal migration assistance. The distinction is important: employer-side sponsorship and recruitment costs should not simply be added to the employee's bill.

Employer Sponsorship Obligations

An employer's responsibilities do not end when the sponsorship, nomination or visa is approved. Approved sponsors have ongoing obligations designed to protect sponsored workers and make sure the employer-sponsored visa programs are being used for genuine workforce needs.

Depending on the sponsorship arrangement, these obligations can include:

• keeping required records
• providing records and information when requested
• notifying Home Affairs when specified circumstances change
• ensuring sponsored workers receive the required terms and conditions
• employing the worker in accordance with the approved occupation and sponsorship arrangements
• cooperating with immigration inspectors
• not recovering prohibited sponsorship and recruitment costs
• meeting applicable travel-cost obligations.

Some obligations continue beyond the end of the sponsorship approval or employment relationship. Employers therefore need to keep their sponsorship records even after a worker leaves.

Home Affairs can take action where a sponsor breaches its obligations. Depending on the breach, this can include infringement notices, civil penalties, cancellation of sponsorship approval or restrictions on sponsoring workers in the future.

What If the Sponsored Employee Leaves?

If a sponsored employee stops working for your business, you may need to notify Home Affairs. Standard Business Sponsors are generally required to report certain changes, including when a sponsored person stops employment, within 28 days.

The employee's visa does not necessarily end on their final day at work. For example, current subclass 482 rules generally allow the worker to spend up to 180 consecutive days away from their approved sponsorship arrangement, subject to a maximum of 365 days across the visa period. This can give them time to find a new sponsor, apply for another visa or arrange to leave Australia.

Those worker mobility rules do not remove the former employer's notification responsibilities. The business should notify Home Affairs about the end of employment through the appropriate sponsorship-change process rather than assuming the worker will deal with the visa side themselves.

What If Your Business Structure Changes?

A business restructure can affect sponsored workers, particularly where the change creates a new legal entity. For example, changing from a sole trader structure to a company creates a different legal entity even if the business name, staff and day-to-day operations remain similar.

Where a new legal entity is created, Home Affairs states that the new entity generally needs to become a Standard Business Sponsor and lodge new nominations for affected subclass 482, former subclass 457 and subclass 494 workers.

This is different from a business change that does not create a new legal entity. If the business is being sold, restructured, merged or changing ownership, check the sponsorship consequences before transferring sponsored employees or changing their employment arrangements.

Before You Sponsor an Employee

Employer sponsorship can help a business fill a genuine skills shortage, but the employer, position and worker all need to fit the proposed visa pathway. Checking the basics early can prevent a business from completing advertising, paying fees or lodging a nomination that cannot proceed as planned.

Before starting, confirm:

• which visa and stream fit the position
• whether the nominated occupation is eligible
• whether the worker can meet the visa requirements
• whether the proposed salary meets the current income threshold and market salary rules
• whether labour market testing is required
• whether the business needs Standard Business Sponsorship
• what sponsorship, nomination and SAF charges will apply
• what obligations the business will have after approval.

The order matters. In many cases, checking the role, occupation, worker and salary before beginning the formal sponsorship process can identify problems while there is still time to address them.

Remember: It is illegal for workers to pay for their own sponsorship. Employers and employees caught exchanging money or benefits for sponsorship face serious penalties.