Employer Sponsorship Requirements and Risks for Skills in Demand (Subclass 482) and Employer Nomination Scheme (Subclass 186) Visa

Employer-sponsored visas, such as the Subclass 482 (Skills in Demand) visa and the Subclass 186 (Employer Nomination Scheme) visa, play a key role in assisting Australian businesses to address skilled labour shortages. Sponsorship can have significant benefits for employers; however, there are also key legal and compliance risks businesses should be aware of prior to engaging in becoming a sponsor.

A business must obtain approval as a Standard Business Sponsor (SBS) prior to sponsoring an employee. The business must demonstrate that it is lawfully established and actively operating in Australia. Documentation is required to demonstrate the business's operational capacity and structure.

What are the Key Requirements to be a Sponsor?

Labour Market Testing (LMT) - Employers must prove that genuine steps were taken to attempt to hire local employees, Australian citizens or permanent residents, prior to considering an overseas employee. Advertisements must be published and running for at least 28 days in the 4 months prior to the application.
Market Rate Salary: Employers must ensure that the nominated employee’s salary at least meets the Annual Market Salary Rate (AMSR) and the Core Skills Income Threshold (CSIT). 
Genuine Position: The role must be genuinely required for the business and cannot be a position created specifically for the nominated employee.

Read: How Do I Know I’m Maintaining My Sponsorship Obligations?

What are the Sponsor’s Reporting Obligations

As a sponsor, employers have a range of obligations, some of which apply beyond the term of sponsorship approval. If an employer does not comply with any of these obligations, the business may be subject to sanctions. Employers must let the Department of Home Affairs know within 28 days if certain events occur, such as:

The visa holder’s employment ends or is expected to end (the sponsor must tell us if the end date changes).
There are changes to the work duties carried out by the sponsored visa holder.
You have paid the return travel costs of a sponsored visa holder or any of their family members in accordance with the obligation to pay return travel costs.
You have become insolvent within the meaning of subsections 5 (2) and (3) of the Bankruptcy Act 1966  and section 95A of the Corporations Act 2001.

Employers must also ensure that:

The employee only works in the nominated position.
The employee's employment conditions must not be less favourable than those of an equivalent Australian worker.
There is no engagement in discriminatory recruitment practices. Accurate records are kept to demonstrate compliance with sponsorship obligations, and they can be provided upon request to a Departmental officer.
Cost of sponsoring is covered:
- The cost of becoming an approved sponsor under the SID 482 visa program is AUD420.
- Nominating a visa applicant for the SID 482 visa is AUD330.
- Nominating a visa applicant for the ENS 186 visa is AUD540.
- Additionally of SAF levy cost depending on the business size it is
  - Small business: AUD 1,200 per year or part thereof for SC482 visa; AUD3,000 one-off for SC186 visa
  - Other business: AUD1,800 per year or part thereof for SC482 visa; AUD5,000 one-off for SC186 visa
Costs associated with sponsorship and nomination applications must cover reasonable and necessary travel costs for the sponsored employee and their sponsored family members to leave Australia.
If your sponsored employee or any of their sponsored family members becomes an unlawful non-citizen, you may be liable to repay the costs incurred by the Commonwealth in removing them from Australia.

Employers should be aware that compliance with the sponsor's obligations is monitored during the sponsorship period and for up to 5 years thereafter. Inspectors are also appointed under the Migration Act 1958 (Federal Register of Legislation) to investigate compliance.

Consequences of Non-Compliance

If employers do not comply with the obligations, they may:

Be barred from sponsoring additional visa holders for a specific time
Be denied any requests for sponsorship for visas
Have all their existing sponsorship approvals cancelled
Financial Penalties

Read our clients’ testimonials on Agape Henry Crux and Accredited Specialist in Immigration Law, Jason Ling.

How Can Agape Henry Crux Help

At Agape Henry Crux, we regularly advise employers on sponsorship compliance, risk management, and strategic workforce planning. Reach out to speak with one of our immigration lawyers for tailored professional advice and guidance. At Agape Henry Crux, our team of immigration lawyers work together with our Accredited Specialists in Immigration Law, who specialise in handling highly complex matters. You can book a consultation with one of our lawyers to seek professional advice by calling 02-8310 5230 or emailing us at info@ahclawyers.com.

We speak fluent English and Mandarin. If this isn’t your language, we can also help you arrange an interpreter.

Our founder and principal lawyer, Jason Ling, has been recognised in the 2026 edition of The Best Lawyers in Australia™. Agape Henry Crux is named as Best Immigration Law Firm 2025 - Sydney by APAC Insider Awards.

This article/presentation (“publication”) does not deal extensively with important topics or changes in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you find this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances, please contact our office.

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