Thinking About Sponsoring an Employee? Here’s What Australian Employers Need to Know

For many Australian employers wanting to hire or retain skilled workers who are not Australian citizens or permanent residents, visa sponsorship may be an option. However, before jumping into the process, there are usually three things that need to be assessed:

Whether the business is eligible to sponsor
Whether the position is suitable for sponsorship
Whether the employee meets the visa requirements

This guide breaks down the main employer-sponsored visa options, what businesses generally need to show, and the costs employers should be aware of before starting.

Visa Options to Sponsor Employees

The right visa option to sponsor skilled employees will depend on the business, the role, the employee’s background, where the position is located and whether the employer is looking for a temporary or permanent solution.

Here is a simple comparison of the main employer-sponsored visa options:

Visa subclass	What it offers	Best suited for
Skills in Demand Visa, Subclass 482	A temporary employer-sponsored visa that allows an approved sponsor to nominate a suitably skilled worker to fill a position in Australia.	Employers who need to fill a genuine skilled role temporarily, or who want to retain an eligible employee who is already working in Australia.
Employer Nomination Scheme Visa, Subclass 186	A permanent residence pathway for eligible skilled workers nominated by an Australian employer.	Employers who want to retain or recruit a skilled worker for a long-term role and support them for permanent residence.
Skilled Employer-Sponsored Regional Visa, Subclass 494	A provisional regional employer-sponsored visa for skilled workers nominated by eligible regional employers.	Regional employers who need to fill a genuine skilled position in a designated regional area and cannot find a suitably skilled Australian worker for the role.
Labour Agreement Pathways	A negotiated arrangement that may allow approved businesses to sponsor skilled overseas workers where standard temporary or permanent skilled visa pathways are not available or do not meet the demonstrated workforce need.	Employers, industries, or regional areas with specific workforce needs that cannot be met through the Australian labour market or standard skilled visa programs.

Is Your Business Eligible to Sponsor an Employee?

Before sponsoring an employee, your business will usually need to show that it is a suitable sponsor. In simple terms, this means the business should be able to show that it is genuinely operating, compliant and able to meet its sponsorship obligations.

Your business may need to show:

It is lawfully operating
It has a genuine role available
It can pay the sponsored employee properly
It has a record of complying with workplace and migration laws
It is committed to employing local labour
It does not engage in discriminatory recruitment practices
It can meet sponsor obligations if approved

A business does not always need to be large to sponsor someone. Small businesses may also be able to sponsor employees if they meet the relevant requirements.

The key question is not just “How big is the business?” but rather, can the business genuinely support the nominated role and comply with its obligations as a sponsor?

Is the Position Suitable for Sponsorship?

Even if the business is eligible, the role itself must also be assessed.

The nominated position generally needs to be genuine, properly classified and aligned with the employee’s skills and experience.

Employers should consider:

Is this a real position within the business?
Is the role full-time?
Does the role match an eligible occupation?
Are the duties consistent with the nominated occupation?
Is the salary at the correct market rate?
Can the business show a genuine need for this employee?
Are there any licensing or registration requirements for the role?

For some employer-sponsored nominations, employers may also need to complete labour market testing before lodging the nomination, unless an exemption applies. This usually means showing that the business tested the Australian labour market and could not find a suitably qualified and experienced Australian worker for the role.

This step is important because choosing the wrong occupation or providing a weak explanation of the role can create issues with the nomination.

Employer sponsorship is not only about the business.

The employee must also meet the visa requirements. This is why it is important to assess both the employer and employee before lodging an application. This will be covered under a separate blog.

What Costs Should Employers Expect?

Sponsoring an employee involves several possible costs. These can vary depending on the visa pathway, business size, visa length and whether professional assistance is used.

Common costs may include:

Sponsorship Application Fee	If your business is not already an approved sponsor, you may need to apply to become one.
Nomination Fee	The employer usually needs to nominate the role and employee for the relevant visa pathway.
Skilling Australians Fund Levy (SAF)	The SAF levy is paid by employers when nominating skilled workers under relevant employer-sponsored visa pathways. The amount depends on the visa pathway, business turnover and, for some temporary visas, the proposed visa period.
Visa Application Charges	The visa applicant usually covers the visa application costs. In some cases, employers may choose to cover these costs, but this should be clearly discussed and documented.
Professional Fees	Many employers work with a registered migration agent or immigration lawyer to prepare the sponsorship, nomination and visa application

Costs Can Employers Not Pass On

Employers must be careful not to recover or transfer prohibited sponsorship-related costs to the visa applicant, employee, family members or another person.

This includes costs connected with becoming an approved sponsor, nomination charges, the Skilling Australians Fund levy/nomination training contribution charge, recruitment costs, and some professional costs connected with sponsorship or nomination. Visa application charges are different, but any cost-sharing arrangement should be reviewed carefully before payment is requested.

This is an important compliance area. Before asking an employee to pay for anything related to sponsorship, employers should get proper advice and make sure the arrangement is lawful.

Final Thoughts

Employer sponsorship can be a powerful way to retain great staff and fill genuine skill shortages.

However, the process needs to be handled carefully. Before sponsoring an employee, employers should understand the available visa options, confirm whether the business and position are eligible, and plan for the costs involved.

Every business and employee situation is different, so getting advice early can help avoid delays, refusals or compliance issues.

AIVS can help you understand your options, assess your business eligibility and identify the most suitable visa pathway for your employee. Book a consultation with AIVS to get personalised guidance before you begin the sponsorship process.