How to Become an Approved Sponsor in Australia – 2025 Guide

Why Become an Approved Sponsor?

• Access skilled talent that is not available locally
• Improve business operations with experienced professionals
• Fill labour shortages in regional or hard-to-staff locations
• Legally employ foreign workers under Australian immigration law

Sponsorship Types and Associated Visas

• Standard Business Sponsorship (SBS)
  

  For sponsoring overseas workers under:

  • Subclass 482 Temporary Skill Shortage (TSS) Visa
  • Subclass 186 Employer Nomination Scheme (ENS) Visa

• Temporary Activities Sponsorship
  

  For sponsoring overseas workers under:

  • Subclass 407 Training Visa
  • Subclass 408 Temporary Activity Visa

• Labour Agreement Sponsorship

  • For employers entering into a formal labour agreement with the Australian Government when standard sponsorship does not meet specific needs.

Eligibility Criteria to Become an Approved Sponsor

To qualify as an approved sponsor in Australia, a business must:

• Be lawfully operating in Australia (with appropriate business registration)
• Have a strong record of compliance with immigration and workplace laws
• Demonstrate a genuine need to employ skilled workers from overseas
• Provide evidence of financial capacity and business viability
• Meet specific obligations for the visa subclass involved

For Standard Business Sponsorship, you must also:

• Not have any adverse information against your business (unless it is reasonable to disregard it)
• Provide an organisational structure and business activity statement

Step-by-Step Process to Become an Approved Sponsor

Step 1: Assess Business Needs and Visa Options

Understand your hiring needs and which visa subclass best suits your requirements:

• Need to fill short-term gaps? → Subclass 482 TSS Visa
• Long-term recruitment goals? → Subclass 186 ENS Visa
• Occupational training for graduates? → Subclass 407 Visa

Step 2: Register and Set Up ImmiAccount

Create an ImmiAccount on the Department of Home Affairs website if you haven’t already. This is the platform where you’ll lodge your sponsorship application.

Step 3: Prepare Required Documents

Typical documents include:

• Australian Business Number (ABN) or Australian Company Number (ACN)
• Business Activity Statement (BAS) for the past 12 months
• Organisational chart or staffing plan
• Financial records (profit & loss, bank statements)
• Evidence of genuine business activity (e.g., client contracts, marketing material)
• Training benchmark evidence (for Subclass 482/186 sponsorship)

Step 4: Lodge the Sponsorship Application

You can apply to become an approved sponsor online through your ImmiAccount. Select the relevant sponsorship category (e.g., Standard Business Sponsorship).

• Current government fee (2025 estimate): AUD $420 (Standard Business Sponsorship)
• Complete all required fields and upload supporting documents

Step 5: Await Approval

Sponsorship approvals typically take between 1 to 3 months, depending on the quality of your application and whether further information is required.

Nomination and Visa Application (Post-Approval)

Once your sponsorship is approved, you can begin nominating overseas workers under the relevant visa subclass. Each nomination and visa application is a separate step requiring additional documentation and fees.

• Nomination includes job position details, labour market testing, salary level, etc.
• Visa applicants must meet age, skills, English, and character criteria

Sponsorship Obligations

As an approved sponsor, your business is legally bound to meet the following obligations:

• Cooperation with the Department: You must assist immigration officials when required.
• Ensure Equivalent Terms and Conditions: Provide overseas workers with the same conditions as Australian employees.
• Keep Records and Provide Information: Maintain detailed records related to sponsorship and visa holders.
• Notify the Department of Changes: Such as when an employee ends employment or your business changes ownership.
• Not Recover Costs from the Worker: You cannot pass on the costs of sponsorship or nomination to the visa applicant.
• Provide Training to Australians (For 186 visas): Demonstrate your commitment to employing and training local workers.

Common Reasons for Sponsorship Refusals

• Incomplete documentation or inaccurate information
• Non-compliance with previous sponsorship obligations
• Insufficient evidence of genuine business activity
• Lack of financial capacity to support workers

Monitoring and Compliance by the Department of Home Affairs

The Department closely monitors approved sponsors to ensure they comply with legal obligations. Failure to do so can result in:

• Sanctions
• Suspension or cancellation of sponsorship
• Civil penalties or criminal charges (in serious cases)

Labour Market Testing (LMT)

In most cases, employers must conduct Labour Market Testing before nominating a foreign worker. This involves:

• Advertising the role in Australia for at least 28 days
• Demonstrating that no suitably qualified Australian worker was found
• Providing evidence of recruitment efforts

This requirement ensures that local workers are given priority before hiring from overseas.

Benefits of Becoming an Approved Sponsor

• Access to global talent pool
• Faster hiring of skilled workers
• Support for business expansion in niche sectors
• Build credibility in your industry as a compliant and progressive employer

How Widen – Migration Experts Can Help

We understand the complexity of sponsorship laws and compliance requirements. While we do not sponsor visa applicants, our team of MARA-registered agents can support your business with:

• Sponsorship application preparation
• Compliance and policy advice
• Assistance with nomination and visa documentation
• Advice on training benchmarks and labour market testing

We work with businesses across various sectors including hospitality, construction, healthcare, IT, and education to help them manage their migration responsibilities efficiently.

Frequently Asked Questions (FAQs)

Q1: How long does it take to become an approved sponsor?

On average, 1–3 months depending on documentation and workload of the Department.

Q2: Is there a cost involved?

Yes, the application fee for becoming a Standard Business Sponsor is around AUD $420 (subject to change).

Q3: Can a small business become a sponsor?

Yes, provided it can show a genuine need, business activity, and capacity to support a foreign worker.

Q4: Do I need to sponsor full-time employees only?

Generally, sponsored positions must be full-time. Part-time roles are not commonly approved unless under exceptional circumstances.

Q5: What happens if I breach my obligations?

Penalties can include fines, cancellation of sponsorship, and bans from future sponsorship.

Conclusion

Becoming an approved sponsor in Australia is a strategic step for businesses that want to solve labour shortages by hiring skilled overseas workers. While the process involves detailed paperwork, eligibility checks, and legal responsibilities, the long-term benefits can be significant.

At Widen – Migration Experts, we support Australian businesses every step of the way by offering reliable, up-to-date migration advice. Whether you’re applying to become a sponsor for the first time or managing ongoing sponsorship responsibilities, our team is here to guide you through a compliant and successful sponsorship process.