How Much Does It Cost to Sponsor an Employee? A 2026-27 Guide for Employers

For Australian businesses, hiring global talent is often a strategic necessity to scale operations or fill critical skill gaps. However, sponsoring a worker under the Skills in Demand (SID) (Subclass 482) or the Employer Nomination Scheme (ENS) (Subclass 186), and the Designated Area Migration Agreements (DAMA) programs involves more than just a job offer. There are several mandatory government fees and legal requirements that employers must budget for. As of 1 July 2026, the Australian Government has updated many of these costs. This guide provides a clear breakdown of the financial commitment required to sponsor an employee this financial year.

Stage 1: Standard Business Sponsorship (SBS)

Before you can sponsor anyone, your business must be a sponsor with an approved Standard Business Sponsorship (SBS).

Government Fee: $420 AUD
Who pays? This is a mandatory employer cost. Under the law, you cannot ask the worker to reimburse you for this fee. Read: Stay Compliant: Sponsorship (SBS and TAS) Obligations for Australian Employers Guide
Validity: Once approved, your SBS is usually valid for 5 years and allows you to sponsor multiple workers.

Stage 2: The Nomination Fee

This is the fee paid to the Department of Home Affairs (DoHA) each time you nominate a specific position for an overseas worker.

SID (SC482): $330 AUD
ENS (SC186): $540 AUD
Who pays? Mandatory employer cost

The Skilling Australians Fund (SAF) Levy

The SAF Levy is a mandatory training contribution paid to the Australian Government at the time of nomination. This is often the highest cost for the employer.

For SID (Subclass 482) (temporary - calculated per year of the visa):

Small Business (Turnover < $10M): $1,200 per year.
Large Business (Turnover > $10M): $1,800 per year.

For ENS (Subclass 186) (Permanent Residency - one-off payment):

Small Business: $3,000
Large Business: $5,000

Important Rule: The SAF Levy must be paid by the employer. It is illegal to pass the SAF Levy cost on to the visa applicant.

Regional Savings: DAMA Endorsement Fees

If your business is located in a regional area covered by a DAMA, you may have access to a wider range of occupations and salary concessions. However, there is an extra administrative step.

Most DAMA regions (like Far North Queensland, the Northern Territory, or Orana) require an endorsement from the local authority before you apply to the Department. There is an additional DAR Endorsement Fee.
The average cost for the endorsement fee is usually between $600 and $1,000 per position, depending on the region.
While there is an extra fee, the benefit for DAMAs it can save you money in the long run by allowing for a 10% reduction in the mandatory salary threshold for certain roles.

The Salary Requirement (CSIT/SSIT)

While not a fee paid to the government, the salary you pay the worker is a critical legal requirement.

As of 1 July 2026, the Core Skills Income Threshold (CSIT) has increased to $79,423 (plus superannuation) and the Specialist Skills Income Threshold (SSIT) has increased to $146,576 (plus superannuation). You must also prove you are paying the Annual Market Salary Rate (AMSR) if Australians in the same role earn more than this threshold.

Stage 3: Visa Application Charges (VAC)

This is the fee for the worker’s actual visa application.

Subclass 482 (Skills in Demand): Starting from $4,015 AUD
Subclass 186 (ENS): Starting from $6,140 AUD
Who pays? Unlike the sponsorship and nomination fees, the law allows either the employer or the employee to pay the VAC.

Why a Lawyer Saves You Money: Professional and Legal Fees

Sponsoring a worker is a major investment. If your application is refused because of a simple error in your Labour Market Testing (LMT) or a mistake in the ANZSCO codes, it can result in a nomination refusal. If that happens, the Department generally does not refund the SAF Levy, which can mean losing thousands of dollars.

Hiring an immigration lawyer ensures that your application is decision-ready and compliant with the latest 2026-27 regulations, protecting your business from financial risk.

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

How Can Agape Henry Crux Help You?

Our team of immigration lawyers at Agape Henry Crux can provide tailored and creative professional advice and visa strategy to give you the best chance of success in meeting your visa goals. The team works closely with two of our Accredited Specialists in Immigration Law who specialise in complex visa matters. We recommend booking 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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