If your business needs to hire a skilled overseas worker on an employer-sponsored visa — whether that’s the Skills in Demand (482) visa or the Employer Nomination Scheme (186) — the first step is becoming an Approved Standard Business Sponsor (SBS).

Many employers assume sponsorship approval is a quick tick-box exercise. It is not. The Department of Home Affairs assesses your business carefully, and getting it wrong — or missing key requirements — results in refusal or delay that leaves your business without the workers you need.

This guide explains the sponsorship approval process, the requirements, the costs, and what you need to do to get it right the first time.

At Magpie Consultants, Umar Ashraf (MARN 2619222) assists employers with standard business sponsorship applications and employer-sponsored visa pathways.

This article is for general information only. Sponsorship requirements and fees change — verify current information at homeaffairs.gov.au.

What Is a Standard Business Sponsor?

A Standard Business Sponsor (SBS) is a business that has been approved by the Department of Home Affairs to sponsor overseas workers on temporary and permanent employer-sponsored visas. Sponsorship approval is required before your business can nominate a worker for a visa.

Once approved, the sponsorship is valid for 5 years from the date of approval. Approval can be renewed before expiry. A single sponsorship approval allows you to nominate multiple workers.

Who Needs Sponsorship Approval?

You need to be an Approved Standard Business Sponsor to sponsor workers on:

Subclass 482 Skills in Demand visa (temporary employer-sponsored)
Subclass 186 Employer Nomination Scheme (permanent — Temporary Residence Transition stream)
Subclass 407 Training visa

For the 186 Direct Entry stream, a sponsorship approval is still required but the process is slightly different. For the 187 Regional Sponsored Migration Scheme, a different type of sponsor approval applies.

What Are the Requirements to Become a Standard Business Sponsor?

1. Lawfully Operating Business

Your business must be lawfully operating in Australia. The Department will check whether your business is registered, compliant with Australian laws, and actively trading. Newly established businesses can apply, but they must demonstrate that they are genuinely operational.

2. No Adverse Information

The Department checks whether there is any adverse information about you or your business — including migration non-compliance history, industrial relations breaches, or criminal history. Adverse information does not automatically result in refusal but must be disclosed and explained.

3. Training Benchmark

For businesses that have been operating for 12 months or more, you must demonstrate that you have met the training benchmark. This requires showing that you have spent at least 2% of payroll on training activities for Australian employees over the most recent payroll year. Training activities include formal training, professional development, and certain workplace training programs.

For businesses operating less than 12 months, the training benchmark does not apply at the sponsorship stage — but it will apply when you renew or at the nomination stage.

4. Commitment to Sponsor Obligations

By becoming an Approved Sponsor, your business commits to a range of obligations, including:

Paying sponsored workers at or above the market salary rate
Ensuring working conditions comply with Australian workplace laws
Not charging the sponsored worker for costs associated with sponsorship or nomination
Notifying the Department of any changes (e.g., changes to the worker’s position, cessation of employment)
Cooperating with Department monitoring and inspection

Breaching these obligations can result in sanctions including cancellation of sponsorship approval and banning from future sponsorship. Take these obligations seriously.

The Three-Step Sponsorship and Nomination Process

Sponsoring a worker on a 482 visa involves three separate applications:

Sponsorship application — the employer applies to become an Approved Standard Business Sponsor
Nomination application — the employer nominates the specific position and worker
Visa application — the worker applies for the 482 visa

Steps 2 and 3 can be lodged concurrently with Step 1 (i.e., you do not have to wait for sponsorship approval before lodging the nomination and visa applications). However, the Department will not finalise the nomination or visa until the sponsorship is approved.

Sponsorship Application: What Documents Do You Need?

The sponsorship application typically requires:

Document	Notes
ABN/ACN details	Confirm business registration and structure
Business activity documents	Contracts, invoices, financial statements — to prove lawful operation
Training evidence	Payroll records, training receipts, professional development logs for the training benchmark
Organisational chart	Shows the structure of the business and where the sponsored position sits
Statement of business activities	Describes what the business does, its industry, size, and plans
Financial statements	To demonstrate financial capacity to employ the worker at or above the required salary

Sponsorship Application Fees

As of 2026, the Sponsorship Application Fee (SAF) is approximately:

Small business (fewer than 10 employees): approximately $550
Standard business: approximately $1,080

Separate to the sponsorship fee, there is a Skilling Australians Fund (SAF) levy payable at the nomination stage. The SAF levy varies by occupation and visa stream and can be significant (typically $1,200–$1,800 per year for small businesses, $1,800–$3,600 per year for larger businesses).

Verify current fees at homeaffairs.gov.au — fees change annually.

How Long Does Sponsorship Approval Take?

Processing times for standard business sponsorship applications vary but typically range from 2 to 6 weeks when the application is complete and well-documented. Incomplete applications or those requiring additional information can take longer.

If you are in urgent need of a worker, do not leave the sponsorship application to the last minute — allow at least 6–8 weeks for the full sponsorship, nomination, and visa process to complete, even in straightforward cases.

Sponsor Obligations After Approval

Becoming an Approved Sponsor is not just a one-time step — it comes with ongoing obligations throughout the sponsorship period. Key obligations include:

Pay sponsored workers correctly — at least the market salary rate (TSMIT — Temporary Skilled Migration Income Threshold) and at or above what an equivalent Australian worker would receive for the same role
Maintain records — keep records of the employment relationship and be able to demonstrate compliance
Notify the Department — of changes to the position, cessation of employment, or changes to the sponsor’s business
Cooperate with compliance monitoring — the Department can conduct audits and inspections of sponsors
Not recover costs from the worker — it is illegal to charge visa or nomination costs to the sponsored worker

Breaches of sponsor obligations can result in formal warnings, infringement notices, financial penalties, or cancellation of sponsorship status. The Department has been significantly increasing its compliance monitoring activity in recent years.

Frequently Asked Questions

Can a newly established business become a Standard Business Sponsor?

Yes. Newly established businesses can apply but must demonstrate that they are genuinely lawfully operating — through contracts, invoices, registration documents, and business activity evidence. The training benchmark requirement does not apply to businesses operating less than 12 months at the time of the sponsorship application.

Can I sponsor a family member or friend on a 482 visa?

Yes, but the position must be genuine — a real role in your business that cannot be filled by the local labour market. The position must also meet market salary requirements and the worker must be genuinely qualified for the role. Family relationships do not disqualify the application but are scrutinised more closely to ensure the role is genuine.

How many workers can I sponsor at once?

There is no fixed cap on the number of workers an individual sponsor can nominate. However, the Department monitors sponsoring businesses and may apply greater scrutiny to businesses that sponsor a disproportionately large number of overseas workers relative to their Australian workforce.

What happens to a sponsored worker if the business closes?

If the business closes and the sponsored worker’s employment ends, the worker typically has 60 days to find alternative employment or take other action (including seeking a new sponsor or leaving Australia). See our guide: 482 Employer Lost Sponsorship: What Happens to Your Visa?

Can a labour hire or recruitment business become a standard business sponsor?

Yes, but there are specific rules for businesses that on-hire sponsored workers to third parties. The Department has particular requirements around on-hire arrangements and monitoring. Seek advice before lodging if your business model involves on-hiring.

Key Takeaways

Become an Approved Standard Business Sponsor before you can nominate a worker for a 482, 186, or 407 visa.
Meet the training benchmark (2% of payroll on Australian employee training) if your business has been operating for 12+ months.
Sponsor obligations are serious and ongoing — pay market salaries, don’t charge workers, notify of changes, and cooperate with audits.
Processing typically takes 2–6 weeks for a complete, well-documented application — allow more time for the full 3-step process.
Fees include the SAF levy at the nomination stage — budget for this when planning a sponsorship arrangement.

Ready to Sponsor a Worker? Contact Magpie Consultants

Getting sponsorship approval right the first time — and staying compliant — protects your business and your workers. A wrong step can result in refusal, penalties, or loss of sponsorship status.

At Magpie Consultants, Umar Ashraf (MARN 2619222) assists employers through the sponsorship, nomination, and visa process — ensuring compliance at every step. We advise in English, Urdu, Punjabi, and Hindi.

Book a consultation: magpieconsultants.com.au/book-appointment
Location: Office 3, 8/10 Childs Road, Epping VIC 3076, Melbourne

DISCLAIMER: This article is for general informational purposes only. Sponsorship requirements, fees, and obligations change frequently. For advice specific to your business circumstances, consult a MARA-registered migration agent. Umar Ashraf — MARN 2619222 — verify at mara.gov.au.

How to Become an Approved Business Sponsor in Australia: Employer Guide 2026