Employers Guide to Sponsoring a Foreign Worker in Australia

Thinking about sponsoring a foreign worker to join your team? Smart move!

Some industries, from hospitality to healthcare & IT, are constantly facing skill shortages. You advertise a role for weeks, only to realise that the perfect candidate just isn’t out there. Or at least not locally.

At such time, sponsoring a foreign worker is a good solution for you. As it helps you fill key positions with skilled professionals from overseas.

Scared of the legal requirements & complexity of process? Don’t worry. We have compiled a guide with all the necessary info. So, you know how to find the right talent for you & how to deal with strict Australian visa regulations.

At Modern Migration Australia, we help businesses in visas and sponsorship. Our expertise in legal work & field requirements make the process easy & straightforward for you. 

Let’s help you learn about the process.

Why Sponsor for Foreign Workers?

Australia’s economy flourishes on diverse industries. But local skill shortages can hinder business growth for all traders.

Many industries struggle to find qualified local professionals, including:

• Healthcare
• Hospitality
• Engineering
• Information technology

Employer sponsorship programs help businesses access international talent via sponsoring a foreign worker. So, they can maintain the continuity of their operations & economic growth. Some reasons to become a sponsor for foreign workers are:

Sponsoring skilled foreign workers is necessary to keep up with market demands and maintain competitive business operations.

Types of Approved Business Sponsors

Before hiring a foreign worker, the employer must become an approved business sponsor. There are different types of sponsorship approvals, each with its own eligibility criteria.

1. Standard Business Sponsorship (SBS)

This is the most common type of sponsorship. That allows businesses to hire skilled overseas workers under the Temporary Skill Shortage (TSS) visa (subclass 482). The business must be Australian based for it. Employers need to prove they are legally operating and meet certain financial and training obligations.

2. Accredited Sponsorship

Businesses that frequently employ foreign workers can apply for accredited sponsorship. It grants priority processing and other benefits. The employer should be based in Australia in it. To qualify, a company must demonstrate a strong track record of compliance with Australian migration laws.

3. Labour Agreement Sponsorship

Labour agreements are formal arrangements between the Australian government and businesses that need to sponsor foreign workers in occupations not on the standard skilled lists. These agreements cater to industry-specific needs and provide specific concessions.

4. Overseas Business Sponsorship (OBS)

OBS is for overseas businesses that need a specific operation to be done in Australian premises. And need to sponsor a foreign employee for that. If they have a registered branch in Australia, they’ll need an SBS instead of OBS.

5. Temporary Activities Sponsorship

This category applies to businesses sponsoring foreign workers for short-term projects. It sponsors under temporary visas such as the Temporary Activity visa (subclass 408). Each sponsorship type has unique benefits and visa regulations. Employers should choose the one that best aligns with their hiring needs.

Visa Subclasses to Sponsor Foreign Workers

Various visa options are there to assist businesses in sponsoring a foreign worker. Below is an overview of the most relevant visa subclasses:

Each visa has different eligibility criteria and conditions. So, businesses must carefully select the right type when sponsoring an employee for a visa.

Financial Aspects of Sponsoring a Foreign Worker

Sponsoring foreign workers involves financial commitments. Approved business sponsors must consider the following key cost factors:

1. Application Costs

There are specific costs for each type of visa sponsorship. E.g.

Note that these fees are subjected to stream & location. For more details, consult with Australian Government Immigration & Citizenship Department.

2. Temporary Skilled Migration Income Threshold (TSMIT)

The Australian government sets a minimum salary threshold for sponsored foreign workers. This is to provide fair wages to everyone, including foreign workers.

Business sponsor must pay the worker at least the TSMIT amount or the market salary rate, whichever is higher. This threshold applies for temporary visa subclass 482, 494, 186 and 187 and varies with the type of occupation.

You can find the TSMIT amount for targeted occupation at Government Department of Home Affairs or consult a visa agent like Modern Migration Australia.

3. Skilling Australians Fund (SAF) Levy

Visa subclasses also mandate the approved business sponsors to pay an amount per sponsored worker, called SAF levy. This contributes to training Australian workers and managing workforce shortage in future.

SAF levy depends on your business size:

• Small businesses (<$10 million turnover): AUD 1,200 per year per worker.
• Larger businesses (>$10 million turnover): AUD 1,800 per year per worker.

It is managed by Australian Government Department of Employment and Workplace Relations. Understanding these costs helps businesses plan budgets and comply with sponsorship visa requirements.

Process of Sponsoring a Foreign Worker

Sponsoring an international worker involves multiple steps, each with its own legal obligations. Here’s a simplified breakdown of the process.

1. Become an Approved Business Sponsor

Mostly employers ask us: “Can I Sponsor a Foreign Worker?” Well, if you comply with the following procedures, you are.

• Apply for Standard Business Sponsorship through the Department of Home Affairs.
• Provide business details like Govt given number, details of your company structure, ASIC records, and registered business name.
• Prove that your business is legally operating via activity statements, workplace policies, organisational charts, and annual reports.
• Attach the financial records like employee records, payroll, employment contracts, accountant letters, and business bank statements.
• Pay the required fees (non-refundable) of the application process.

Then, wait for approval, which can take several weeks.

2. Choose a Role Listed in Visa Occupations

Once you become an approved business sponsor, it’s time for sponsoring a foreign worker in the required vacancy.

• Select the type of temporary visa you want for the employee.
• Select a position from the relevant skilled occupation list of that visa.
• Make sure that the role meets salary and qualification requirements.

You can check the DAMA visa occupation list here or contact our team for further assistance.

3. Arrange a Labour Market Testing (LMT)

LMT demonstrate efforts by business sponsors to recruit Australian workers before hiring a foreign employee.

• Advertise the job in at least two national platforms for at least 28 days.
• You can do it via LinkedIn, business website or print media.

This proof also should be attached to your visa application.

4. Nominate an Eligible Foreign Worker

Double check that the foreign worker you want to sponsor holds the skills needed for job & then:

• Submit a nomination application specifying the employee’s details and job role.
• Provide evidence that the worker is suitably qualified.

Note that there are specific procedures and requirements for each subclass of visa. You must comply to them for a successful nomination grant.

5. Intended Foreign Worker Applies for Visa

Once nomination is approved, the intended employee must apply for the required temporary visa. Eligibility criteria for visa application states:

• The worker must hold a clean record with no prior visas cancelled.
• Worker also should meet health, character, and English language requirements.

Following these steps and compliance with sponsorship visa Australia requirements along with proper planning and expert guidance make the process easy for you.

Need experts to help you in sponsoring a foreign worker?

Partner with Modern Migration Australia

At Modern Migration Australia, we help businesses of every scale in sponsoring an employee for a visa. Our experienced migration agents can assist you in paperwork and offer guidance to meet your workforce needs.

Contact Us Today to Discuss Your Sponsorship Options

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Frequently Asked Questions

• Can I sponsor a foreign worker if my business is new?

Yes, but you must provide evidence of the business registration. financial stability and lawful operation.

• What are the sponsorship visa requirements for the TSS visa?

Employers must be approved sponsors, nominate a relevant skilled occupation, meet salary thresholds, and conduct labour market testing.

• Are there concessions available under the DAMA visa?

Yes, DAMA agreements offer flexibility in age, skills, and salary requirements, particularly for regional employers.

• How long does the sponsorship approval process take?

Processing times vary according to the complexity of application. However, the estimated time for most of applications is 8-12 weeks.

• What conditions I must meet to become an approved business sponsor?

Employers must provide proof of fair employment conditions, maintain records, and comply with Australian immigration laws.

• Is there a pathway to permanent residency for sponsored workers?

Yes, visas like the ENS subclass 186 provide pathways to permanent residency.