The employer sponsored visa program in Australia exists to help businesses fill genuine skill shortages using international talent. It also creates structured, legal pathways for skilled foreign nationals to work—and potentially settle—permanently in Australia.
If you’re an Australian employer looking to sponsor overseas workers, or a foreign candidate aiming to work in Australia, understanding the exact requirements is critical.
This guide outlines the full process, eligibility criteria, obligations, and strategic considerations for both parties.
1. Overview of Employer Sponsored Visa Options
There are three main visa subclasses used for employer sponsorship:
1.1 Subclass 482 – Temporary Skill Shortage (TSS) Visa
- Duration: Up to 4 years
- Stream: Short-Term, Medium-Term, and Labour Agreement
- Pathway to PR: Yes (in Medium-Term and Labour Agreement streams)
1.2 Subclass 186 – Employer Nomination Scheme (ENS) Visa
- Type: Permanent residency
- Streams: Direct Entry, Temporary Residence Transition, Labour Agreement
1.3 Subclass 494 – Skilled Employer Sponsored Regional (Provisional) Visa
- Duration: 5 years
- PR Pathway: After 3 years in regional area
2. Requirements for Australian Employers
To sponsor a worker, the employer must meet legal and operational benchmarks:
2.1 Standard Business Sponsorship (SBS) Approval
Employers must apply to become an approved sponsor. This involves:
- Being lawfully operating in Australia
- Demonstrating financial viability
- Showing a genuine need for the position
- Meeting training benchmarks (depending on visa type)
SBS approval is valid for five years.
2.2 Labour Market Testing (LMT)
Before nominating a foreign worker, the employer must show that they advertised the role domestically and could not find a suitable local candidate.
Valid evidence includes:
- Two national job advertisements
- Running for at least 4 weeks
- Posted within the last 4 months before nomination
Exemptions may apply under international trade obligations or specific Labour Agreements.
2.3 Nomination of the Role
The employer must nominate:
- A role on the relevant Skilled Occupation List
- A position meeting market salary rates (usually at least AUD $70,000)
- Terms and conditions equal to those offered to local workers
The position must be genuine and full-time.
2.4 Skilling Australians Fund (SAF) Levy
Employers are required to pay the SAF levy:
- Small businesses (<$10M turnover): AUD $1,200 per year per nominee
- Large businesses: AUD $1,800 per year per nominee
This must be paid upfront for the full duration of the visa.
2.5 Ongoing Sponsorship Obligations
Once the worker is in Australia, the sponsor must:
- Keep records of employment and payments
- Notify the Department of Home Affairs of changes
- Ensure the visa holder only performs the nominated role
Failing to meet these obligations can result in sanctions or loss of sponsorship rights.
3. Requirements for Foreign Candidates
International applicants must meet visa-specific eligibility criteria.
3.1 Skills & Occupation
- The job must be on a relevant Skilled Occupation List (Short-Term, Medium-Term, or Regional)
- The applicant must have at least 2 years of full-time work experience in the nominated occupation
- For Subclass 186 (Direct Entry), a skills assessment is mandatory
3.2 English Language Proficiency
Minimum English scores (unless exempt):
- IELTS 5.0 (Short-Term stream)
- IELTS 6.0 (Medium-Term, ENS, or 494 visas)
Other approved tests: TOEFL iBT, PTE Academic, OET, Cambridge CAE
3.3 Health and Character
Applicants must:
- Pass a health examination (medical and chest X-ray)
- Obtain police clearance certificates from all countries lived in for over 12 months
3.4 Age Limit
- Subclass 186 and 494 require applicants to be under 45 years at time of application
- Exemptions apply for high-income earners, academic/research roles, and transitional streams
4. Key Differences Between the Different Visa Types
| Visa Type | Duration | PR Pathway | Location | Processing Time |
|---|---|---|---|---|
| 482 | Up to 4 yrs | Yes (Medium-Term only) | National | 2–6 months |
| 186 | Permanent | Yes | National | 6–10 months |
| 494 | 5 yrs | Yes (after 3 yrs) | Regional only | 5–10 months |
5. Employer Strategy Tips (2025 Outlook)
- Target regional incentives: The 494 visa offers migration advantages and potential financial support for regional employers
- Be competitive: Visa sponsorship is only the start—ensure your salary, benefits, and culture are attractive to skilled global talent
- Stay up to date: Changes to the Skilled Occupation List and SAF levy thresholds are expected mid-2025
6. Candidate Tips for 2025
- Build a migration-friendly resume: Australian employers expect local formatting and clear job outcomes
- Work with trusted recruiters: Agencies like Greener Grass work with real sponsors—avoid job scams
- Prepare your documents early: Skills assessments, English tests, and police certificates can take weeks or months
7. Common Pitfalls to Avoid
For employers:
- Underpaying market rate salaries
- Failing to report role changes
- Choosing occupations not on the right list
For candidates:
- Applying to companies not registered as sponsors
- Failing to meet English or skill level requirements
- Assuming one visa leads to PR without checking stream
8. How Greener Grass Can Help
We support both employers and candidates through the entire journey:
- Job posting and candidate matching
- Employer sponsorship readiness checks
- Visa eligibility assessments
- Coordination of documentation and communication with migration partners
For personalised help, contact us or browse current job openings on our Jobs page.
Let’s help you build the bridge between global talent and Australian opportunity.
