The employer sponsorship framework

Topic Work visa framework 🇦🇺 Verified: 2026-05

Overview

Australia's employer sponsorship framework requires an employer to be approved as a standard business sponsor (SBS) before they can sponsor overseas workers for temporary or permanent skilled visas. The framework involves three stages: (1) sponsor approval, (2) nomination (linking a position to a specific worker), and (3) visa application. Sponsorship creates ongoing obligations on the sponsor that continue after the visa is granted. The framework is set out in ss 140A–140K of the Migration Act 1958 and the Migration Regulations 1994.

The employer sponsorship framework applies primarily to the Subclass 482 (Skills in Demand) temporary work visa and the Subclass 186 (Employer Nomination Scheme) permanent visa. It also applies to the Subclass 494 (Skilled Employer Sponsored Regional) visa.

The framework is designed to ensure that employers genuinely need overseas workers, that those workers are employed on terms equivalent to Australians, and that the employer accepts ongoing accountability for the sponsored worker's employment.

Legal basis

Section 140A — approval as a standard business sponsor
Section 140E — nomination requirements: the sponsor must nominate a position for a specific worker; the position must satisfy prescribed criteria
Section 140H — the obligations of approved sponsors, including pay obligations, training obligations, and obligations to cooperate with inspections
Section 140K — sanctions for breach of sponsorship obligations: civil penalties and bar from further sponsorship
Migration Regulations 1994 — regulation 2.72A — the Labour Market Testing requirements for Subclass 482 nominations

How it works

Stage 1 — Sponsor approval

An employer must apply to the Department of Home Affairs to be approved as a standard business sponsor. Approval criteria include:

The business is lawfully operating in Australia
The business has not had adverse migration-related judgments against it
The business meets training benchmarks (or has an approved training record)

Approval is granted for up to 5 years and must be renewed. A business that ceases to be "actively operating" loses its eligibility.

Stage 2 — Nomination

For each overseas worker, the sponsor must lodge a nomination identifying:

The position (ANZSCO occupation code)
The specific worker to be nominated
The salary and employment conditions
Evidence of labour market testing (for most Subclass 482 nominations)

Labour market testing (LMT) requires the employer to demonstrate they genuinely tried to recruit from the Australian workforce before sponsoring an overseas worker. Standard LMT requires advertising the position for 28 days on certain Australian job boards.

Stage 3 — Visa application

Once the nomination is approved (or lodged concurrently), the nominated worker lodges the visa application. The visa cannot be granted unless the nomination is approved first.

Sponsorship obligations

After approval, sponsors have ongoing obligations under s 140H, including:

Pay the worker at least the same earnings as an equivalent Australian worker
Not recover from the worker certain costs associated with sponsorship
Keep records and provide information to the Department as required
Cooperate with inspections
Notify the Department of certain events (e.g., the worker's employment ceases)

Sanctions for breach

Civil penalties (in the form of infringement notices or court orders) apply to sponsors who breach their obligations. The Department may also bar a sponsor from sponsoring further workers, or cancel a sponsor's approval entirely.

Labour agreements

Where the standard sponsorship framework cannot meet an employer's workforce needs — for example, because the occupation is not on the relevant list, or the salary threshold cannot be met — employers may seek a Labour Agreement. Labour agreements are negotiated between the employer and the Commonwealth and may modify the standard requirements.