In brief
- Employer sponsorship has three steps: approval as a sponsor, a nomination for the position, and the worker’s visa application.
- The Skills in Demand visa (subclass 482) replaced the Temporary Skill Shortage visa on 7 December 2024.
- The employer pays the Skilling Australians Fund levy and the other sponsorship costs, and can’t pass them on to the worker.
- After at least two years of full-time sponsored work on a 482 visa, a worker may be able to apply for permanent residence through the 186 visa.
The three steps of employer sponsorship
Sponsoring a worker from overseas takes three applications to the Department of Home Affairs. Each has its own rules and fees. Home Affairs doesn’t refund the costs if an application fails, so it pays to get each one right.
- Sponsorship: the business applies to become a standard business sponsor. Approval lasts five years.
- Nomination: the business nominates the position, shows it has tested the local labour market (unless exempt), and shows it will pay the annual market salary rate and at least the relevant income threshold. The Skilling Australians Fund levy is paid when the nomination is lodged.
- Visa: the worker applies and shows their skills, at least one year of relevant work experience, a skills assessment if the occupation needs one, English, and that they meet the health and character requirements.
Skills in Demand (482) or Employer Nomination Scheme (186)
The 482 is a temporary visa and the 186 is permanent. Some employers sponsor a worker on a 482 first and nominate them for a 186 later. Others nominate for a 186 from the start. The main differences:
| Feature | Skills in Demand (subclass 482) | Employer Nomination Scheme (subclass 186) |
|---|---|---|
| Type | Temporary | Permanent |
| Streams | Specialist Skills, Core Skills and Labour Agreement | Direct Entry, Temporary Residence Transition and Labour Agreement |
| Length of stay | Up to 4 years (5 for Hong Kong passport holders) | Permanent from the grant |
| Work experience | At least 1 year | Usually at least 3 years for Direct Entry |
| SAF levy, paid by the employer | $1,200 a year (turnover under $10 million) or $1,800 a year | $3,000 (turnover under $10 million) or $5,000, paid once |
| Working for the sponsor | Only for the sponsor or an associated entity, unless exempt; up to 180 days to find a new sponsor if the job ends | Home Affairs expects the worker to work for the nominating employer for at least 2 years |
What sponsors must keep doing
Sponsors have duties that last as long as the worker is sponsored. Home Affairs checks on sponsors through audits and site visits, and sponsors must cooperate.
If a sponsor breaks the rules, Home Affairs can cancel its approval, bar it from sponsoring again, issue a fine or ask a court for a penalty. The main duties are:
- Pay the worker the salary and conditions in the approved nomination, no less favourable than for an Australian doing the same work
- Make sure the worker does the job they were nominated for
- Tell Home Affairs within 28 days if the worker stops working for you, doesn’t start, or their duties change
- Pay all the costs of sponsorship yourself: they can’t be passed on to the worker or their family
- Keep records and provide them when asked
Never ask a sponsored worker to pay for their sponsorship. It’s against the law to ask for or accept a payment or other benefit in return for sponsorship, including a deduction from pay (section 245AR of the Migration Act).
Planning ahead
Sponsorship takes time. Home Affairs decides applications in an order of priority, and that order changes. If you expect to need workers from overseas, start early. Check the occupation is on the right list, keep evidence of your local recruitment, and work out the market salary before you nominate.
Income thresholds go up each year on 1 July, and occupation lists change too, so check the rules when you apply. Only a registered migration agent or an Australian lawyer can give immigration help. You can check any agent on the OMARA register.
What to do next
Employer sponsorship can fill roles you can’t fill locally, but it’s a commitment: three applications, costs paid upfront and obligations that last as long as the worker is sponsored.
Talk to Red Earth Migration’s registered migration agents about whether sponsorship suits your business and which visa fits the role.
