How Employer Visa Sponsorship Works in Australia: A Complete Guide for 2025

In 2025, skilled labour shortages remain a major challenge for Australian employers, especially in industries like hospitality, healthcare, construction, IT, and regional services. If your business is struggling to recruit suitable local staff, employer visa sponsorship may be the solution.

Through this government-regulated process, Australian businesses can sponsor overseas workers to fill specific roles—either temporarily or on a pathway to permanent residency. While the sponsorship framework has clear steps and legal criteria, many businesses find it confusing without proper guidance.

This guide explains how employer visa sponsorship works in Australia, what your responsibilities are, and how to get started—whether you’re hiring your first overseas worker or looking to expand your sponsorship program.

Need expert help? Book a free consultation with AIM Lawyers and let us guide your business through the entire process.

What Is Employer Visa Sponsorship?

Employer sponsorship allows an Australian business to bring in a skilled overseas worker for a position that it cannot fill with a local candidate. The business becomes the “sponsor” and the worker becomes the “nominee.”

This arrangement is not simply about hiring from overseas—it’s a legal process that places specific responsibilities on the employer. These responsibilities continue before, during, and after the visa is granted.

There are two main types of sponsorship pathways:

  • Temporary sponsorship, such as the Subclass 482 Temporary Skill Shortage (TSS) visa
  • Permanent sponsorship, such as the Subclass 186 Employer Nomination Scheme (ENS) visa

Both options require government approval and must align with Australia’s immigration framework, which prioritises genuine skill shortages.

Who Can Sponsor a Worker?

Not every business can automatically become a sponsor. To qualify, you must be:

  • A legally established and actively operating business in Australia.
  • Offering a genuine, full-time position that is difficult to fill locally.
  • Able to pay at or above the market salary rate for the role.
  • Compliant with Australian employment and immigration laws.

You don’t need to be a large corporation—small and medium businesses regularly sponsor staff. What matters most is that you meet the Department of Home Affairs’ requirements and are transparent about your operations and hiring needs.

If you haven’t sponsored before, our step-by-step guide for first-time sponsors will help you get started.

Step-by-Step: How to Sponsor an Overseas Worker in Australia

Understanding the sponsorship process means breaking it into three core stages:

1. Apply for Sponsorship Approval

First, your business must become a Standard Business Sponsor (SBS). This involves a formal application to the Department of Home Affairs. You’ll need to provide:

  • Your ABN and business registration documents
  • Evidence of lawful operations (e.g. invoices, payroll reports, bank records)
  • Proof you can meet sponsorship obligations, including paying wages and maintaining records

Once approved, your SBS status generally lasts for five years, during which you can nominate multiple overseas workers for eligible positions.

2. Nominate the Position You’re Hiring For

Next, you must nominate the specific position you want to fill. This isn’t just a job ad—it’s a formal application that confirms:

  • The position is on the Skilled Occupation List.
  • The role is full-time, ongoing, and aligns with your business operations.
  • The salary is above the Temporary Skilled Migration Income Threshold (TSMIT)—$70,000 as of 2025.
  • The role was properly advertised in Australia under Labour Market Testing (LMT) requirements.

LMT typically means advertising the job on two national platforms for a minimum of 28 days and providing evidence that no suitable local applicants were found.

3. The Worker Applies for the Visa

Once your nomination is approved, the overseas candidate can lodge their visa application. They’ll need to provide:

  • Evidence of their skills and qualifications
  • English language test results
  • Police clearances and medical exam results
  • A positive skills assessment (depending on the visa and occupation)

In many cases, the nomination and visa application can be lodged at the same time to speed up processing.

Visa Options for Employer Sponsorship in 2025

Choosing the right visa depends on the role, the worker’s background, and your business’s long-term hiring strategy.

1. Subclass 482 Temporary Skill Shortage (TSS) Visa

This is the most common visa for employer-sponsored workers. It allows the worker to stay in Australia for up to four years. It requires:

  • Sponsorship and nomination approval
  • LMT compliance
  • The role to be on the MLTSSL or STSOL

For MLTSSL-listed roles, the worker may later apply for PR via the 186 visa.

Learn more: 482 Visa Requirements & Processing Time

2. Subclass 186 Employer Nomination Scheme (ENS) Visa

This is a permanent visa that gives the worker PR immediately. It includes:

  • Temporary Residence Transition (TRT) – for workers who have already worked for you under a 482 visa
  • Direct Entry (DE) – for skilled workers applying from overseas or without recent sponsorship history

The ENS visa is ideal if you’re confident in the worker’s long-term fit and want to offer stability.

3. Subclass 494 Skilled Employer Sponsored Regional (Provisional) Visa

This visa is specifically for employers in regional areas. It:

  • Allows up to five years of stay
  • Requires employment in a role on the Regional Occupation List (ROL)
  • Offers PR eligibility after three years via the 191 visa

It’s a strong option for regional employers struggling to attract skilled workers locally.

Your Legal Obligations as a Sponsor

Becoming a sponsor comes with important responsibilities. These don’t end once the visa is granted. As an employer, you must:

  • Pay the sponsored worker at or above the market rate
  • Ensure they work only in the role for which they were nominated
  • Keep accurate employment and salary records
  • Notify the Department of Home Affairs if:
    • The worker resigns
    • The business is sold, closed, or restructured
    • The job role changes substantially

Failing to meet your obligations can result in fines, sponsorship bans, or being placed on a monitoring list. Compliance is taken seriously, so it’s essential to keep your records up to date and seek legal advice when needed.

Why Sponsoring a Skilled Worker Makes Business Sense

Sponsorship isn’t just about filling a vacancy—it’s about investing in the future of your business. Many sponsored workers bring international experience, diverse perspectives, and niche skills that aren’t readily available in the local labour market.

Beyond skills, you’re also gaining team members who are likely to stay long-term. With the pathway to permanent residency often tied to ongoing employment, sponsored staff tend to be highly committed, loyal, and motivated.

By getting sponsorship right, your business can reduce turnover, retain talent, and grow with a stable, skilled workforce.

Case Study: From Staff Shortages to a Full Team

A regional aged care facility in South Australia had tried for months to recruit qualified enrolled nurses locally—without success. AIM Lawyers helped the provider gain SBS approval, advertise according to LMT rules, and sponsor three nurses from the Philippines. After 18 months on a 482 visa, the employer supported their 186 applications. All three are now permanent residents, and the facility has reduced its reliance on costly agency staff.

Frequently Asked Questions (FAQs)

  1. How long does sponsorship approval take?
     SBS applications typically take 4 to 8 weeks, depending on how complete the documentation is and whether Home Affairs requests further evidence.

  2. Do I need to advertise the job before sponsoring someone?
    Yes—for most 482 visa nominations, Labour Market Testing is required. This includes advertising on at least two national platforms for 28 days.

  3. Can I sponsor someone already in Australia?
    Yes. Many visa holders—like students or working holiday makers—can transition to a sponsored visa, as long as they meet visa eligibility criteria.

  4. Can I sponsor more than one worker?
    Yes. Once you’re an approved sponsor, there’s no hard cap on the number of workers you can nominate—as long as each position is genuine and necessary.

  5. What if the employee leaves before their visa ends?
    You must inform Home Affairs. The worker will then have 60 days to find a new sponsor or apply for a different visa. Your sponsorship obligations end when you report the change.

Take the First Step with AIM Lawyers

If you’re hiring in a tight market or want to bring in international talent, employer sponsorship is one of the most powerful tools available to Australian businesses. It allows you to stay competitive, compliant, and confident in your hiring strategy.

But to get it right, you need expert legal guidance—especially when navigating LMT, salary thresholds, visa eligibility, and compliance obligations.

Book your free consultation today and let our migration lawyers support your next sponsorship application from start to finish.