How to Become a Standard Business Sponsor in Australia (2025 Guide)

Australia’s skilled migration program allows local employers to sponsor overseas workers to fill roles where no suitably qualified Australian workers are available. To participate, businesses must first become a Standard Business Sponsor (SBS).

This detailed guide explains:

  • What SBS status is
  • Eligibility and documentation requirements
  • The application process
  • Key legal obligations post-approval
  • Compliance risks and how to mitigate them

Whether you’re a startup, growing SME, or national employer, understanding your legal and operational responsibilities when sponsoring an employee is essential to staying compliant and attracting global talent.

Need help getting approved as a sponsor?
Book a free consultation with AIM Lawyers and get expert guidance tailored to your business.

What Is a Standard Business Sponsor (SBS)?

A Standard Business Sponsor is an employer approved by the Department of Home Affairs to nominate foreign workers for temporary work visas such as:

  • Subclass 482 – Temporary Skill Shortage (TSS) visa
  • Subclass 186 – Employer Nomination Scheme (permanent residency)
  • Other labour agreements (e.g. DAMA or company-specific MOUs)

Without SBS approval, employers cannot lawfully sponsor foreign workers for temporary skilled visas.

Why Become a Standard Business Sponsor?

Employers pursue sponsorship to:

  • Fill skills gaps in their workforce
  • Attract highly specialised or international talent
  • Support business expansion into new markets or regions
  • Retain valuable temporary visa holders by transitioning them to permanent residency

It also positions your business as a globally competitive employer.

Learn more about the visa options you can access as an SBS:
 482 Visa Requirements Guide →

Eligibility Criteria for Sponsorship Approval

To qualify as a Standard Business Sponsor, you must meet several core criteria:

1. Legally Established and Actively Operating

Your business must be registered in Australia (ABN/ACN) and operating lawfully in the local market.

Acceptable structures include companies, trusts, sole traders, and partnerships. Overseas businesses may apply in limited cases (e.g. intra-company transfers).

2. Sound Financial Position

You must demonstrate that your business is:

  • Viable and solvent
  • Has the capacity to meet salary obligations for sponsored workers
  • Not reliant on sponsored workers to stay operational

BAS statements, profit and loss records, and bank statements are typically requested.

3. Good Immigration and Workplace Record

The business must not:

  • Have been previously sanctioned for immigration breaches
  • Have ongoing compliance actions under Fair Work or ATO laws
  • Be associated with banned directors or business operators

Documents Required for the SBS Application

When applying, you’ll need to prepare and upload evidence showing that your business is eligible. This may include:

  • ABN or ACN registration
  • Business activity evidence: recent contracts, invoices, payslips, insurance
  • Financials: bank statements, BAS, accountant letters
  • Organisation chart or employee summaries
  • Written explanation justifying the need to hire foreign workers

Depending on your structure and industry, additional documentation may be requested.

Step-by-Step Application Process

Step 1: Register for ImmiAccount

All applications are lodged through the ImmiAccount system provided by the Department of Home Affairs. Create an account and ensure your business contact details are up to date.

Step 2: Complete the SBS Form

Select “Standard Business Sponsor” application and fill in:

  • Business entity details
  • Contact officers
  • Sponsorship type (e.g. onshore)
  • Declaration of legal compliance

Step 3: Upload Supporting Documents

Attach your documentation bundle. Ensure all files are legible and match naming conventions.

Step 4: Pay the Application Fee

As of 2025, the government fee for SBS registration is AUD $420 (subject to CPI increases).

Step 5: Await Decision

SBS approvals can take 1 to 2 months, depending on the complexity and volume of submissions. You may be contacted for additional evidence.

Want to fast-track your approval with a compliant submission?
Book your free consultation to have your application reviewed by a migration expert.

How Long Is Sponsorship Valid?

  • Most businesses receive a 5-year approval
  • Start-ups or new ventures may be limited to 12–18 months
  • Sponsorship can be renewed prior to expiry

Your sponsorship approval grants you access to nominate workers during this period, subject to annual monitoring and compliance.

Key Sponsorship Obligations After Approval

Being approved isn’t the end of your responsibility—it’s the beginning of formal employer obligations, which are closely monitored.

You must:

  • Pay equivalent market salary rates
  • Provide employees with genuine positions
  • Notify the Department within 28 days of:
    • Ending a sponsorship
    • Changing business ownership
    • Changes to the employee’s duties or location
  • Keep detailed records for 5 years

Failure to comply can lead to:

  • Visa cancellations
  • Sponsorship revocation
  • Civil penalties under the Migration Act

For more on compliance, read:
 Common Mistakes When Sponsoring an Employee →

Understanding Labour Market Testing (LMT)

Before sponsoring a visa applicant under the Subclass 482, most employers must undertake Labour Market Testing.

This involves:

  • Advertising the position on at least three platforms
  • Running the ads for at least 28 days
  • Including salary, role description, and location
  • Retaining screenshots and ad performance data

LMT is mandatory unless exemptions apply (e.g. international trade agreements, intra-corporate transfers).

Common Pitfalls to Avoid

Many first-time applicants encounter delays or refusals due to:

  • Insufficient documentation (especially financial records)
  • Failing to justify the need for foreign workers
  • Non-compliant job advertising
  • Prior adverse information about the business or directors

Using a registered migration lawyer significantly improves your chances of first-pass approval.

How AIM Lawyers Supports Employers

AIM Lawyers offers end-to-end legal services for sponsoring employees, including:

  • SBS eligibility assessments
  • Document preparation and compliance reviews
  • Application submission and monitoring
  • Handling nominations, visa lodgements, and renewals
  • Post-approval compliance audits and legal advice

Take the guesswork out of sponsorship—
 Book your free assessment today and speak with a specialist.

Frequently Asked Questions (FAQ)

1. How long does it take to become a Standard Business Sponsor?

It typically takes between 4 to 8 weeks, depending on the strength of your application and whether the Department of Home Affairs requests additional information.

2. Can I sponsor more than one employee once approved?

Yes. Once you’re an approved sponsor, you can nominate multiple employees during your sponsorship validity period, provided each role meets visa eligibility and LMT requirements.

3. Do I need to renew my sponsorship?

Yes. SBS approval is typically valid for 5 years, but you must apply to renew before expiry if you wish to continue sponsoring employees.

4. What happens if I don’t comply with my sponsor obligations?

Non-compliance can lead to fines, cancellation of sponsorship rights, and visa cancellation for the sponsored employee. It’s important to stay up to date with reporting and record-keeping requirements.

5. Can I apply for SBS as a startup or new business?

Yes, but you may be granted a shorter validity period (e.g. 12–18 months), and you’ll need to provide a business plan, financial projections, and evidence of active operations.