What Happens When Your Standard Business Sponsorship (SBS) is Refused?

Becoming an approved Standard Business Sponsor (SBS) is the essential first step for any Australian business looking to employ overseas workers on employer-sponsored visas, such as the Skills in Demand (SID) (Subclass 482) or Skilled Employer Sponsored Regional (Provisional) (Subclass 494) visas. If your business has just received an SBS refusal notification from the Department of Home Affairs (DoHA), it can immediately put your recruitment plans on hold and affect the visa status of your prospective or current employees.

What is the Immediate Impact of an SBS Refusal?

An SBS refusal does not just affect the business; it creates a domino effect for any connected applications. Because a valid sponsorship is a legal requirement for employer-sponsored visas:

Any pending nomination applications linked to the refused SBS will likely be refused.
Any associated pending visa applications that rely on those nominations will likely be refused.
If the connected nominations and visas are refused, you generally will not receive a refund for the Skilling Australians Fund (SAF) levy, nomination fees, or visa application charges (VAC).

What are the Common Reasons for SBS Refusals?

The Department will outline the specific legal grounds for your refusal in a formal decision record. The most common reasons include:

The business did not provide sufficient evidence (such as recent financial statements, BAS, or lease agreements) to prove it is currently operating and financially viable.
The Department uncovered negative or adverse information regarding the business or its directors. This often involves past breaches of immigration law, unpaid debts, or violations of Fair Work and workplace safety regulations.
Failing to demonstrate a commitment to employing and training Australian citizens and permanent residents (PR), or failing to meet previous training benchmarks or SAF levy obligations.
Failing to respond adequately or in a timely manner to a Request for Information (RFI) from the Department.

What are Your Options After an SBS Refusal?

Receiving a refusal is highly disruptive, but it is not necessarily the end of the road. Depending on your situation, you may have two (2) pathways:

Appeal to the Administrative Review Tribunal (ART)

If you believe the Department made an incorrect decision based on the evidence provided, or if you have new evidence to strengthen your case, you can apply for a merits review at the Administrative Review Tribunal (ART). You must act quickly! The timeframe to lodge an ART appeal is strictly enforced and is limited to a period from the date you are deemed to have received the refusal notice. If you appeal the SBS refusal, the ART can also review the associated refused nominations and visa applications, potentially protecting your prospective employee's bridging visa status in Australia while the appeal is pending.

Lodge a New SBS Application

In some cases, an appeal may not be the most effective strategy, especially if the refusal was due to a simple error or missing documentation you can now easily provide.

You can forfeit the previous application and submit a new SBS application. Read: SBS Application: Employer’s Document Checklist
This new application must comprehensively address the reasons for the previous refusal to avoid a repeat outcome. Contact AHC Lawyers today for professional guidance.
Keep in mind that while a new SBS application is being processed, any associated workers without valid bridging visas may need to secure alternative visa pathways or depart Australia.

Why Engage with AHC Lawyers?

Because an SBS refusal triggers complications across multiple applications (sponsorship, nomination, and visa), you need a coordinated legal strategy. Navigating the ART or submitting a new SBS application without addressing the Department’s concerns often leads to further refusals and financial loss. Our Accredited Specialists in Immigration Law at Agape Henry Crux can review your company’s adverse information and issues and prepare a legal submission, with supporting evidence, to address the Department’s concerns.

How Can Agape Henry Crux Help

Contact our AHC Lawyers team today for a confidential strategy session to get the right strategy from the start. The team specialises in complex work-sponsored visa matters and works to achieve your goals. Consider speaking with one of our Accredited Specialists in Immigration Law, Jason Ling or Angela De Silva, as they specialise in highly complex matters. You can schedule an appointment for professional advice by calling 02-8310 5230 or emailing info@ahclawyers.com.

We speak fluent English and Mandarin. We can also help you arrange an interpreter if this isn't your language.

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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