Introduction
Sponsorship of skilled overseas workers can be a great way to fill critical labour shortages in your business.
If you are an Australian employer tending to sponsor a foreign worker, there are several options available — each with specific requirements and obligations.
We will guide you through every step of the sponsorship process to ensure a smooth and compliant pathway to hiring overseas employees.
Process of Sponsorship
Before sponsoring an overseas employee, there are a number of eligibility criteria that both the business and the position must meet. These ensure that the sponsorship is genuine, necessary and in line with the Australian immigration and employment regulations.
Understanding such criteria is an important step in determining whether the sponsorship is the right pathway for your business.
Key Steps of the Sponsorship Process
Below are the essential steps that an employer must follow to lawfully sponsor a skilled overseas worker in Australia:
Step 1: Demonstrating the Need for an Overseas Employee
As a part of the process, an employer must show that they’ve made efforts to hire a suitable local worker in Australia but were unable to fill the position locally.
This helps to ensure that overseas recruitment is to address real skill shortages and not to displace Australian workers. In the application, you will need to provide the evidences of labour market testing meeting its requirements.
Step 2: Occupation Eligibility
The second step is that the occupation for which you intend to sponsor a skilled worker must be listed as an eligible skilled occupation.
In the even that the occupation is not listed, you may still be able to sponsor a worker via a labour agreement.
Note that the Australian government also offers certain visas (like SID Visa, Subclass 186 and Subclass 494) and various streams to highly paid applicants who possess specialist skills or exceptional talents.
Assessing authorities may require skilled workers to provide evidence of their recognized qualifications, skills, and/or relevant work experience.
Also, the nominated occupation determines which visa options or streams the employee is eligible to apply for.
Step 3: Worker Eligibility
In the next step, the employer must ensure that the prospective employee meets the eligibility requirements for the selected visa, including qualifications, skills, work experience and English language proficiency.
You can use VEVO so as to check the eligibility criteria for visas.
Also, you can find visa options for skilled sponsored workers here.
Step 4: Apply To Become A Sponsor
In the next step, the Australian employer must apply to become an approved sponsor or nominator so as to sponsor an overseas employee for an skilled occupation.
Note that you can apply to be an accredited sponsor which depends on the selected visa.
Step 5: Occupation Nomination
To proceed with the sponsorship, the employer is required to identify the position to be filled by the skilled worker, ensure it aligns with the visa subclass being pursued and provide comprehensive details about the nominated individual.
For more information about the nomination process, click here.
Step 6: Visa Application
This step is primarily the responsibility of the skilled worker (nominee) and the employer must ensure that the nominee satisfies the eligibility requirements of the relevant visa.
As mentioned above, in certain cases, nominees must obtain a skills assessment from the relevant assessing authority to verify their suitability for the nominated occupation or position.
Who can become a sponsor?
Any legal and operating business in Australia can apply to become a sponsor through different types of sponsorship.
The Department of Home Affairs may approve businesses or organizations for different types of sponsorships – for example, they may hold both a Standard Business Sponsorship as well as a Labour Agreement at the same time.
Employers should only seek a labour agreement if standard skilled visas cannot be used to fill labour shortages.
Who you can sponsor?
You can sponsor a skilled worker who:
- Lives overseas and intends to travel to and work in Australia.
- Is already in Australia on a visa that doesn’t allow them to work.
- Is already living and working in Australia on a different visa.
You can also assume sponsorship for the individuals holding a Temporary Work Skilled visa (subclass 457) or a Skills in Demand visa (subclass 482).
Note that the Temporary Work (Skilled) visa (subclass 457) is currently close to new applications.
Sponsorship Cost
Application Fees
- Becoming an approved sponsor under the SID 482 visa program: AUD 420
- Nominating a visa applicant for the SID 482 visa: AUD 330
- Nominating a visa applicant for the ENS 186 visa: AUD 540 (subject to stream and location)
- Paying the Skilling Australians Fund levy
The costs are non-refundable in the event that the application is not successful.
Skilling Australians Fund Levy
The Skilling Australians Fund (SAF) levy is a tax-deductible fee that businesses must pay when sponsoring a skilled worker. The amount depends on the business’s turnover and the employee’s proposed length of stay in Australia. Employers are responsible for covering these costs.
The aim of the SAF levy is for employers in order to contribute to the broader development of skills in Australia.
You are responsible for covering all costs related to becoming a sponsor, as well as nominating and sponsoring an applicant. You cannot pass these costs on to the visa holder or their family members.
FAQs
1. How can an employer prove that they need to hire an overseas employee instead of a local worker?
Employers must demonstrate that they made genuine efforts to hire a local worker but were unable to fill the position. This involves providing evidence of labor market testing showing that local recruitment was unsuccessful.
2. What are the consequences if a business doesn’t meet the sponsorship criteria?
If a business fails to meet the eligibility criteria or doesn’t follow the correct process, its application for sponsorship may be denied. Non-compliance could also lead to legal and regulatory issues.
3. Can a business sponsor workers already in Australia on other visas?
Yes, businesses can sponsor workers who are already in Australia on a visa that doesn’t allow them to work or those living and working in Australia on a different visa.
4. Can an employer withdraw sponsorship after it’s been approved, and what happens to the visa holder?
Yes, an employer can withdraw sponsorship, but they must notify the Department of Home Affairs immediately. Once withdrawn, the visa holder may have limited time to find a new sponsor or apply for another visa. Failure to act quickly could result in visa cancellation and the need to leave Australia.
5. How long does the sponsorship process take?
The sponsorship process timeline can vary based on the complexity of the application, visa type and the specific requirements of the employer and worker. We recommend allowing several months for the entire process, including labour market testing, obtaining the necessary approvals and completing the visa application.
6. Can employers transfer workers already on a visa to a new sponsorship?
Yes, if the worker is already in Australia on a temporary visa, a new employer can transfer them through a new sponsorship arrangement. However, the worker must meet the eligibility requirements for the specific visa type and those of the occupation that the employer nominates.