SBS, SID Visa, TSMIT, and SAF Levy: Employer Sponsorship Explained
Employer-sponsored migration in Australia involves several interconnected terms that can be confusing at first glance. SBS (Standard Business Sponsorship) is the approval process for employers to become sponsors. The SID (Skills in Demand) visa is the new name for the subclass 482 temporary skilled visa from December 2024. TSMIT (Temporary Skilled Migration Income Threshold) is the minimum salary employers must pay sponsored workers. And the SAF (Skilling Australians Fund) levy is a charge employers pay per nomination. Together, these elements form the framework for bringing skilled workers to Australia through employer sponsorship.
Standard Business Sponsorship (SBS)
What Is an SBS?
Before an employer can nominate a skilled worker for a temporary skilled visa, the business must become an approved sponsor through the Standard Business Sponsorship process. Think of it as the employer's licence to sponsor overseas workers.
The SBS allows a business to:
- Nominate overseas workers for the SID visa (subclass 482)
- Nominate workers for the subclass 494 (Skilled Employer Sponsored Regional) visa
- Sponsor multiple workers under one approval (no need to reapply for each worker)
SBS approval lasts for 5 years (previously it was shorter), after which the business must apply for renewal if it wants to continue sponsoring.
Requirements for SBS Approval
Not every business can become a sponsor. The Department of Home Affairs assesses:
- Lawful operation — The business must be legally operating in Australia
- No adverse information — No history of non-compliance with immigration or workplace laws
- Genuine need — Evidence that the business genuinely operates and needs overseas workers
- Financial viability — The business must be able to pay the sponsored worker's salary and meet other obligations
- Training commitment — Previously tied to specific training benchmarks; now linked to the SAF levy
Common reasons for SBS refusal:
- New businesses with insufficient trading history
- Businesses with unresolved tax debts or workplace law violations
- Companies that can't demonstrate genuine operational need
- Adverse information from previous sponsorship arrangements
Sponsor Obligations
Becoming an approved sponsor comes with ongoing responsibilities. These aren't just formalities — the Department actively monitors and audits sponsors.
Key obligations include:
- Paying the sponsored worker at least the nominated salary (no less than TSMIT)
- Ensuring working conditions are no less favourable than Australian workers in comparable roles
- Keeping records of sponsored workers' employment
- Notifying the Department of certain changes (e.g., worker stops employment, business changes)
- Cooperating with monitoring and compliance activities
- Paying reasonable costs for the worker's return travel if the sponsorship ends
What happens if you breach obligations? The Department can sanction sponsors, including barring them from future sponsorship, imposing administrative penalties, or referring matters for civil or criminal prosecution.
Skills in Demand (SID) Visa — Subclass 482
What Is the SID Visa?
The Skills in Demand visa is the new name for the subclass 482 visa, reformed in December 2024 as part of the government's migration reform program. It replaced the old Temporary Skill Shortage (TSS) visa structure with a clearer, two-stream system.
The SID visa has two main streams:
Core Skills Stream
- Requires an occupation on the CSOL (Core Skills Occupation List)
- Salary must meet the Core Skills TSMIT: $73,150
- ANZSCO skill levels 1-3
- Visa granted for up to 4 years
- Pathway to permanent residency through subclass 186 (Employer Nomination Scheme) after 2 years
- Skills assessment required
Specialist Skills Stream
- No occupation list requirement
- Salary must meet the Specialist Skills threshold: $135,000
- Open to occupations at skill levels 1-3
- Designed for high-earning specialists where salary itself demonstrates the skill level
- Visa granted for up to 4 years
- Pathway to permanent residency through subclass 186
What changed from the old 482? The old TSS visa had a short-term stream (STSOL occupations, 2-year visa, no PR pathway) and a medium-term stream (MLTSSL occupations, 4-year visa, PR pathway). The SID visa eliminates the two-tier PR access problem — both streams now offer a pathway to permanence.
SID Visa Application Process
The process involves three stages, and each has its own requirements:
Stage 1: Sponsorship approval (SBS) The employer applies to become an approved sponsor (if not already approved).
Stage 2: Nomination The employer nominates a specific position and worker. This involves:
- Identifying the ANZSCO code for the role
- Demonstrating the position is genuine
- Meeting the relevant salary threshold (TSMIT)
- Labour market testing (advertising the position to Australians first)
- Paying the SAF levy
Stage 3: Visa application The worker applies for the visa through ImmiAccount. This requires:
- Skills assessment (for Core Skills stream)
- English language evidence
- Health and character checks
- Evidence of relevant qualifications and experience
- Health insurance arrangements
TSMIT: Temporary Skilled Migration Income Threshold
What Is TSMIT?
TSMIT is the minimum salary an employer must pay a sponsored worker on a temporary skilled visa. It exists to protect both Australian and overseas workers — ensuring sponsored workers aren't being brought in to undercut local wages.
Current TSMIT Rates
With the SID visa reforms, TSMIT was restructured into two levels:
| Stream | TSMIT | Purpose |
|---|---|---|
| Core Skills | $73,150 | Standard threshold for CSOL occupations |
| Specialist Skills | $135,000 | Higher threshold — no occupation list needed |
Important details:
- TSMIT is the guaranteed annual earnings, not the base salary alone
- It includes the guaranteed base rate of pay
- It does NOT include superannuation, bonuses not guaranteed, overtime, or non-monetary benefits
- TSMIT is indexed and may increase annually — check the Department's website for current figures
- The salary must also meet the Annual Market Salary Rate (AMSR) for the occupation — whichever is higher applies
Why TSMIT Matters
TSMIT serves multiple purposes:
For sponsored workers: It guarantees a minimum income level, preventing exploitation. Before TSMIT was increased (it was stuck at $53,900 for years), many sponsored workers were paid at levels below what Australians earned for the same work.
For the Australian labour market: It ensures employer sponsorship isn't used purely as a cheap labour source. If an employer can't afford to pay TSMIT, the argument goes, the role doesn't justify overseas recruitment.
For visa eligibility: If the offered salary doesn't meet TSMIT, the nomination is refused. It doesn't matter how skilled the worker is or how much the employer wants to hire them — no TSMIT, no visa.
SAF Levy: Skilling Australians Fund
What Is the SAF Levy?
The Skilling Australians Fund levy is a charge paid by employers for each worker they nominate for a temporary skilled visa or a permanent employer-sponsored visa. The revenue goes to the Skilling Australians Fund, which supports apprenticeships and vocational training for Australians.
SAF Levy Rates
The levy varies based on the visa type, the employer's size, and the visa duration:
For temporary skilled visas (482 SID):
| Business Size | Annual Rate |
|---|---|
| Small business (turnover < $10 million) | $1,200 per year |
| Other businesses | $1,800 per year |
For permanent employer-sponsored visas (186, 187):
| Business Size | One-off Payment |
|---|---|
| Small business | $3,000 |
| Other businesses | $5,000 |
Key points about the SAF levy:
- It's paid by the employer, not the visa applicant
- For temporary visas, it's calculated based on the visa duration (e.g., a 4-year visa = 4 × annual rate)
- It's paid at the nomination stage, not the visa application stage
- It's non-refundable if the nomination is refused (in most cases)
- Employers cannot recover SAF levy costs from the sponsored worker
Who Pays the SAF Levy?
The employer. Full stop. Under Australian law, employers cannot pass the SAF levy cost on to sponsored workers, either directly or by deducting it from wages. If an employer asks you to pay or reimburse the SAF levy, that's a breach of sponsorship obligations, and you should report it.
How These Terms Connect
Here's how the entire employer sponsorship process fits together:
- Employer gets SBS approval → Becomes an approved sponsor
- Employer identifies a role → Finds the ANZSCO code, confirms it's on the CSOL (or salary meets Specialist threshold)
- Employer advertises the position → Labour market testing to show no suitable Australian worker is available
- Employer lodges nomination → Specifies the role, salary (must meet TSMIT), and pays the SAF levy
- Worker lodges visa application → Through ImmiAccount, with skills assessment, English, health, and character evidence
- Visa granted → Worker can start employment with the sponsor
- After 2 years → Employer can nominate the worker for subclass 186 permanent visa
If any step fails, the chain breaks. An employer without SBS can't nominate. A salary below TSMIT means the nomination is refused. An occupation not on the CSOL blocks the Core Skills stream. Each element must be in place.
Common Issues in Employer Sponsorship
Employer doesn't want to pay the SAF levy: Some employers, particularly small businesses, baulk at the cost. But it's non-negotiable — and they can't ask you to pay it.
Salary is just below TSMIT: There's no flexibility. If the guaranteed earnings don't meet the threshold, the nomination fails. Some employers try to top up with "guaranteed bonuses," but these must be genuinely guaranteed (written into the employment contract) to count.
Occupation isn't on the CSOL: If your role isn't on the CSOL, the Core Skills stream isn't available. But if the salary exceeds $135,000, the Specialist Skills stream is an option regardless of occupation list placement.
Skills assessment issues: Each occupation has a specific assessing authority. Getting a positive assessment can take months. Start this process early — don't wait until you have a sponsor. Check which authority assesses your ANZSCO code.
Frequently Asked Questions
Can I change employers on a SID visa?
Yes, but your new employer must be an approved sponsor (or become one), lodge a new nomination, and pay the SAF levy. You can't just switch jobs freely — each change requires a new nomination.
Does my employer have to pay for my visa application?
The law requires employers to pay certain costs (like the SAF levy and nomination fee), but visa application charges are typically the worker's responsibility unless the employment contract says otherwise.
What happens if I'm fired from my sponsored job?
You generally have 60 days to find a new sponsor, apply for a different visa, or leave Australia. During this period, your visa remains valid. Talk to a migration agent immediately if this happens.
Can a start-up be an approved sponsor?
Yes, but newer businesses may face additional scrutiny. The Department will want evidence of genuine operations, financial capacity, and a real need for the nominated position.
Is the TSMIT likely to increase?
TSMIT is now indexed, meaning it's expected to increase periodically in line with wage growth. The specific mechanism and timing of increases are set by the government. Check the Department of Home Affairs website for current figures.
What's the difference between SID and the old TSS visa?
The SID visa replaced the TSS (Temporary Skill Shortage) visa. The main improvements: a single occupation list (CSOL) instead of three, both streams offering PR pathways, higher salary thresholds reflecting current wages, and clearer processes. Existing TSS visa holders are subject to transitional arrangements.
