Standard Business Sponsorship is the first step for any Australian employer wanting to sponsor overseas workers. Before nominating and hiring a foreign worker, the business must be approved as a sponsor by the Department of Home Affairs. Home Affairs lists the sponsorship application cost as AUD420, and once approved it lasts for 5 years. In the official processing guide, 50% of sponsorship applications were decided in 11 days and 90% in 57 days. The business must demonstrate it's legally established and currently operating, has no adverse information, and will meet all sponsor obligations including paying market salary rates and maintaining employment records.
Quick Facts
| Detail | Information |
|---|---|
| Cost | $420 |
| Processing time | 11 days (50%) to 57 days (90%) |
| Validity | 5 years |
| Renewal | Available before expiry |
| Who can apply | Legally established, operating businesses in or outside Australia |
| Apply through | ImmiAccount |
What Is Standard Business Sponsorship?
Standard Business Sponsorship is the government's approval mechanism for employers who want to hire overseas workers on sponsored visas. Think of it as a licence to sponsor — without it, a business cannot nominate or bring in foreign workers.
The sponsorship covers the Skills in Demand (SID) visa, and the Subclass 494 regional visa. One sponsorship approval allows the business to sponsor multiple workers across different visa types.
Requirements for Approval
Lawfully Operating Business
The business must be:
- Legally established (an ABN for businesses based in Australia; businesses outside Australia can also apply)
- Actively trading or operating
- Compliant with Australian laws (tax, workplace, immigration)
- Not involved in fraudulent or illegal activities
New businesses can apply, but they may face additional scrutiny regarding their financial viability and genuine need for overseas workers.
No Adverse Information
The Department checks for "adverse information" about the business and its key personnel. This includes:
- Previous immigration law breaches
- Fair Work Act violations
- Workplace health and safety breaches
- Environmental law breaches
- Tax compliance issues
- Fraud or dishonesty convictions of directors or key personnel
A single past infringement doesn't necessarily disqualify a business, but serious or repeated breaches will result in refusal.
Training Requirements
The old training benchmark (spending a share of payroll on training) is not listed in the current sponsor eligibility requirements. Instead, a business in Australia should have a strong record of, or a demonstrated commitment to, employing local labour. It must also declare that it will not engage in discriminatory recruitment practices. Both are written attestations in the application form.
Genuine Need
The Department assesses whether the business has a genuine operational need for overseas workers. Factors considered include:
- The size and nature of the business
- The number of employees
- Previous sponsorship history
- Industry and occupation context
Application Process
Step 1: Prepare Documentation
Gather the following:
- Business registration documents (ABN, company registration)
- Financial statements (latest year)
- Your written attestation on employing local labour (part of the form)
- Details of the business structure and operations
- Information about key personnel (directors, partners)
- Previous sponsorship history (if applicable)
Step 2: Lodge Online
Submit the sponsorship application through ImmiAccount. The application involves completing the online form and uploading supporting documents.
Step 3: Processing
The Department assesses the application against all criteria. They may request additional information if anything is unclear. In the Home Affairs processing times guide, 50% of sponsorship applications were decided in 11 days and 90% in 57 days.
Step 4: Approval
Once approved, the business receives a sponsorship approval that lasts for 5 years. The business can then proceed to nominate specific workers.
Costs
| Item | Cost |
|---|---|
| Standard Business Sponsorship application | $420 |
| Nomination (per worker) | $330 |
| Skilling Australians Fund levy | $1,200/year (small business) or $1,800/year (larger business) per nominated worker |
The Skilling Australians Fund (SAF) levy is a per-worker, per-year charge that funds Australian training programs. Small businesses (turnover under $10 million) pay $1,200 per year per sponsored worker. Larger businesses pay $1,800.
Sponsor Obligations
Being an approved sponsor carries significant ongoing obligations. These include:
- Pay market salary rates — no less than an equivalent Australian worker
- Only employ the worker in the nominated occupation at the nominated location
- Maintain records — employment contracts, payslips, working conditions documentation
- Notify the Department of changes to the business or the worker's employment
- Pay travel costs for sponsored workers and their sponsored family to leave Australia, when they ask in writing
- Cooperate with Department monitoring — allow inspections and provide information when requested
- Not recover sponsorship costs from the worker — the employer cannot charge the worker for sponsorship or nomination fees
Renewal
Sponsorship approval lasts 5 years. To continue sponsoring, the business must apply for renewal before the current approval expires. The renewal assessment considers:
- Compliance history during the sponsorship period
- Current business status
- Continuing need for overseas workers
- Whether you have met your sponsor obligations
Businesses with a clean compliance record generally have straightforward renewals. Those with breaches or monitoring issues may face enhanced scrutiny or refusal.
Common Issues
Processing Delays
Delays commonly occur due to:
- Incomplete documentation (most common)
- Adverse information requiring investigation
- Additional information requests from the Department
- High application volumes
Submit complete applications with all documents to minimise delays.
Refusal
Sponsorship applications are refused when:
- The business is not genuinely operating
- Adverse information is found
- Eligibility requirements (such as the local labour attestation) aren't met
- Key personnel have concerning backgrounds
- The business can't demonstrate a genuine need
Refused applicants can seek review through the Administrative Review Tribunal, which replaced the Administrative Appeals Tribunal on 14 October 2024.
Cancellation
The Department can cancel an existing sponsorship if:
- The business ceases to operate
- Obligations are breached
- False information was provided
- The business is found to be exploiting workers
Cancellation affects all current and future nominations under that sponsorship.
Frequently Asked Questions
Can a sole trader be an approved sponsor?
Yes. Sole traders, partnerships, companies, and other business structures can all apply for sponsorship, provided they meet the requirements.
How many workers can a sponsor nominate?
There's no fixed limit. The number of nominations should be proportionate to the business's size and genuine needs. A 5-person company nominating 50 workers would raise concerns.
Can a new business apply for sponsorship?
Yes, but new businesses may face additional scrutiny. Providing a business plan, financial projections, and evidence of genuine operations helps.
Does the sponsored worker need to be in Australia?
No. The sponsorship and nomination process can occur while the worker is overseas. They apply for their visa and travel to Australia once it's granted.
What if the business changes ownership?
A change of ownership may require a new sponsorship application. The new owners must meet all requirements independently. If the business structure remains the same (e.g., share transfer), the existing sponsorship may continue.
