Employer Sponsorship SBS Compliance: Common Mistakes That Can Put Your Business at Risk

For many Australian businesses, the ability to sponsor skilled workers from overseas is a great way to grow. However, becoming a Standard Business Sponsor (SBS) is a legal privilege that comes with ongoing obligations. The Department of Home Affairs (DoHA) and the Australian Border Force (ABF) regularly monitor sponsors to ensure compliance with these rules. Even a small, accidental mistake can lead to heavy fines or cancellation of your SBS.

Common SBS Compliance Mistakes & How to Avoid Them

Failing to Pay the Approved Nominated Salary & Not Meeting the Market Salary Rate

You must pay the sponsored worker the nominated salary listed in the approved nomination. As of 1 July 2026, the minimum threshold for most roles is $79,423. You must also prove you are paying the sponsored worker the same amount you would pay an Australian in the same role. Underpaying a worker is a major breach of your obligations.

Duties Not Matching ANZSCO

A worker must perform the specific tasks of the occupation for which they were sponsored. If their daily duties drift away from the official ANZSCO description, you are in breach.

Missing the 28-day Notification Deadline

You must notify the Department within 28 days if a sponsored worker stops working for you, if their duties change significantly, or if your business structure changes.

Poor Record Keeping

Sponsors are legally required to keep records of the worker’s employment, including payslips, contracts, and job descriptions, for several years. During an audit, if you cannot produce these documents instantly, the Department may assume you are non-compliant.

Passing Sponsorship Costs to the Worker (Visa Applicant)

It is illegal to ask a worker to pay for the costs of the Standard Business Sponsorship (SBS) or the Nomination application. You cannot claim back these fees through salary deductions or private agreements.

Ignoring Labour Market Testing (LMT) Rules

For many visas, you must prove you tried to hire an Australian first. A common mistake is advertising for the Labour Market Testing (LMT) for less than the mandatory minimum of 4 weeks or using the wrong platforms. This leads to a refusal.

Inaccurate Job Descriptions

The Department looks for the genuineness of the position. If a job description looks like it was copied and pasted from the internet rather than reflecting your actual business needs, the Department may suspect the role was created just to get a visa.

How to Protect Your Business?

The best way to manage compliance is through prevention. We recommend annual audits by reviewing your payroll and job descriptions every year. Ensure your HR team understand the 28-day notification rule. Engage with an immigration lawyer to conduct mock audits and fix any issues before the Department finds them.

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

How Can Agape Henry Crux Help You?

The consequences of non-compliance are too high to ignore; avoid these common mistakes to ensure that your business remains a trusted sponsor and succeeds. Consider speaking with one of our immigration lawyers at Agape Henry Crux for a mock audit. Our team of immigration lawyers works closely with our Accredited Specialists in Immigration Law to handle highly complex matters. We recommend that you book a Migration Planning Session with our team by calling 02 8310 5230 or emailing us at info@ahclawyers.com to arrange a time.

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, is recognised in the 2026 edition of The Best Lawyers in Australia™ and the 2027 edition of The Best Lawyers in Australia™. Agape Henry Crux is named as Best Immigration Law Firm 2025 - Sydney by APAC Insider Awards and in the 2027 edition of The Best Law Firms™ - Australia.

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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