Can Your Business Lose Its Standard Business Sponsorship (SBS)?
For Australian employers, obtaining Standard Business Sponsorship (SBS) approval is a major achievement. It is essentially your licence to hire skilled workers from around the world to grow your business. However, this approval is not permanent or unconditional.
The Department of Home Affairs (DoHA) has the legal power to revoke your sponsorship status if you fail to meet your legal responsibilities. Losing your SBS status doesn't just stop you from hiring new people; it can also put the visas of your current sponsored staff at risk.
What Causes a Business to Lose SBS Approval?
The Department typically revokes an SBS when the business breaches its sponsorship obligations. The most common causes include:
If you pay a sponsored worker less than the salary stated in the approved nomination and/or below the current TSMIT of $79,423.
If the Department discovers that your business turnover, staff numbers, or history were forged or falsified to obtain the SBS, they will revoke it.
If the Fair Work Ombudsman (FWO) finds that your business has exploited workers or ignored safety standards, DoHA will likely cancel your sponsorship rights.
You must notify the Department within 28 days of certain events, such as a sponsored worker resigning or your business changing its legal structure.
If you sponsor a chef but they are actually working as a cleaner, the Department will consider the sponsorship fraudulent.
Related: Is Your Company at Risk of Adverse Information for a Nomination Application?
The Warning Sign: Notice of Intention to Take Action (NOITTA)
Before you lose your SBS, you will usually receive a Notice of Intention to Take Action (NOITTA). This is your final opportunity to explain why you should keep your SBS within a specific timeframe, usually 7 days. If you do not respond with a strong legal submission with evidence, the revocation will be finalised.
Can You Reapply for SBS Again?
The answer is: It depends.
If your SBS expired naturally after 5 years, you can simply apply for a new one.
If your SBS was taken away due to a breach, DoHA may impose a sponsorship bar. This means your business is banned from applying for a new SBS for a set period. There may be an opportunity to have the bar waived; speak with an Accredited Specialist in Immigration Law for your next steps.
If the SBS was lost due to fraudulent documents or lies, it is extremely difficult to be approved again. The Department will view the business as high risk.
How to Avoid Losing Your SBS Approval?
The best way to protect your SBS is through proactive compliance.
Conduct internal audits regularly.
Ensure your HR and payroll teams understand that they have only 28 days to report changes to the Department.
You must keep records of employment, salary, and duties for at least 5 years. If DoHA audits you, you must be able to produce these files instantly.
Seeking professional assistance from an immigration lawyer can help you conduct a compliance check to find and fix mistakes before an inspector shows up.
Read our clients’ testimonials on Agape Henry Crux and Accredited Specialist in Immigration Law, Jason Ling.
Related:
Sponsoring Skilled Migrants: SBS Process, Obligations, and Main Considerations
SBS Application: Proving Your Business is Lawfully Operating
What Happens If Your Business Is Audited by the Department of Home Affairs?
Who is Responsible for Paying Employer-Sponsored (Subclass 482 / 186) Visa Costs?
How Can Agape Henry Crux Help You?
Losing your SBS approval can be a disaster for your business operations and your reputation. Consider speaking with one of our immigration lawyers at Agape Henry Crux for a compliance check and 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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