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

Employer-sponsored visas, including the Skills in Demand (Subclass 482) visa and the Employer Nomination Scheme (Subclass 186) visa, play a critical role in helping Australian businesses address skilled labour shortages. While sponsorship can offer significant workforce benefits, it also carries strict legal obligations and compliance risks that employers must carefully manage.

What is Standard Business Sponsorship (SBS)?

Before sponsoring a foreign worker, a business must be approved as a Standard Business Sponsor (SBS). To be approved, the business must demonstrate that it is:

Lawfully established in Australia, and
Actively operating in Australia.

Supporting documents are required to evidence the nature, structure, and operational capacity of the business.

What are the Key Sponsorship Requirements?

Labour Market Testing (LMT)

In most cases, employers must demonstrate that they made genuine efforts to recruit Australian citizens or permanent residents before nominating an overseas worker.

This generally requires:

Advertising the position for at least 28 days; and
Advertising within the four months prior to lodging the nomination application.

Other read: Exemptions from Labour Market Testing (LMT)

Market Salary & Income Thresholds

Employers must ensure that the sponsored employee’s remuneration meets:

The Annual Market Salary Rate (AMSR): what an Australian worker would be paid for the same role; and
The Core Skills Income Threshold (CSIT): a minimum income threshold set by the Department of Home Affairs.

The salary offered must be the higher of these two requirements.

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Genuine Position Requirement

The nominated position must be:

Genuine;
Necessary for the business; and
Not created solely to facilitate visa sponsorship for a particular individual.

Ongoing Sponsor Obligations

Once approved, sponsors are subject to ongoing obligations that can extend during and after the sponsorship period.

Reporting Obligations

Sponsors must notify the Department of Home Affairs within 28 days if, for example:

The sponsored employee’s employment ends or is expected to end;
There are material changes to the employee’s work duties;
The business becomes insolvent under the Bankruptcy Act 1966 or Corporations Act 2001;
A new director is appointed; or
Return travel costs have been paid for the employee or their family.

Failure to report can result in sanctions.

Read:

Employment Conditions & Record‑Keeping

Employers must also ensure that:

The visa holder works only in the nominated occupation;
Employment conditions are no less favourable than those offered to an equivalent Australian worker;
Recruitment practices are non‑discriminatory; and
Accurate records are kept and can be produced upon request by the Department.

What are the Costs of Sponsoring an Employee?

Employers should budget for the following government fees:

Subclass 482 (SID) Visa

Standard Business Sponsor application: AUD 420
Nomination application: AUD 330
Skilling Australians Fund (SAF) Levy:
- AUD 1,200 per year for businesses with a turnover under AUD 10 million; or
- AUD 1,800 per year for businesses with a turnover of AUD 10 million or more

Subclass 186 (ENS) Visa

Nomination application: AUD 540
Skilling Australians Fund (SAF) Levy:
- AUD 3,000 (businesses under AUD 10 million)
- AUD 5,000 (businesses AUD 10 million or more)

Additional costs may include legal fees.

Sponsors must pay reasonable and necessary travel costs to allow a sponsored employee and their sponsored family members to leave Australia if requested. If a sponsored worker becomes an unlawful non‑citizen, the sponsor may also be liable for the Commonwealth’s costs of removing them from Australia. Sponsor compliance is monitored during the sponsorship period and for up to five years afterwards. The Department has the power to conduct audits and appoint inspectors under the Migration Act 1958 to investigate potential breaches.

Consequences of Non‑Compliance

Failure to comply with sponsorship obligations can result in serious consequences, including:

Being barred from sponsoring additional visa holders;
Refusal of future sponsorship applications;
Cancellation of current sponsorship approvals; and
Financial penalties, including infringement notices.

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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