If an Australian business needs to hire skilled overseas workers for roles that cannot be filled locally, it must first apply for Standard Business Sponsorship (SBS). Once approved, this sponsorship is valid for five years and enables the business to nominate overseas candidates for the Temporary Skill Shortage (TSS) Visa (subclass 482) and the Skilled Employer Sponsored Regional (SESR) Visa (subclass 494). Businesses may also apply to become accredited sponsors, allowing for priority processing of their TSS and SESR nominations by the Department.

Standard Business Sponsorship (SBS)

Businesses approved as sponsors must meet specific obligations designed to protect overseas skilled workers from exploitation and ensure the visa program supports genuine skill shortages without undermining local wages or employment conditions. Some of these obligations continue even after the sponsorship period ends.

Key obligations include:

• Cooperating with compliance inspections

• Ensuring overseas workers receive equivalent terms and conditions of employment

• Maintaining accurate records

• Providing information and records to the Department upon request

• Notifying the Department of Home Affairs (DHA) of certain changes or events

• Ensuring the visa holder only works in the approved occupation, program, or activity

• Not recovering, transferring, or charging the visa holder for certain costs

• Covering the travel expenses for the visa holder to leave Australia, if required

• Paying costs associated with the removal of unlawful non-citizens

• Providing training to Australian citizens and permanent residents

• Avoiding discriminatory recruitment practices

To maintain or renew a Standard Business Sponsorship, the business must continue to fully comply with all sponsorship obligations.

Sponsorship Obligations

The Monitoring and Sponsorship Obligations

Employing overseas skilled workers often requires the business to act as a sponsor for the visa applicant.

Once a business is approved as a Standard Business Sponsor, a range of sponsorship obligations immediately apply. These obligations are designed to ensure compliance with immigration requirements, uphold fair workplace standards, and protect overseas workers from exploitation.

To maintain or renew a Standard Business Sponsorship, businesses must continue to fully meet these obligations throughout the sponsorship period.

As a sponsor, what are my obligations?

As a sponsor, you are responsible for ensuring that overseas employees are provided with fair and lawful employment conditions. This includes:

• Legal pay rates

• Standard leave entitlements

• Agreed shift and roster arrangements

• Payslips, superannuation, and tax documentation

• A safe and compliant work environment

In addition to the above, sponsors must also meet a range of formal obligations required by immigration authorities. See further obligations listed below.

In additional to this you must also:

• Notify the Department of Home Affairs when certain events occur, such as changes to business name, structure, partnerships, financial status, or the sponsored employee’s role.

• Ensure the sponsored employee only works in their nominated occupation.

• Provide equivalent terms and conditions of employment to those offered to an Australian employee performing the same role.

• Provide training opportunities to Australians and permanent residents.

• Avoid engaging in discriminatory recruitment practices.

• Maintain accurate records that demonstrate compliance with sponsorship obligations.

• Supply records and information to the Department upon request.

• Cover all costs associated with becoming and remaining a sponsor.

• Pay reasonable travel costs for the sponsored employee and their family members to leave Australia, if required.

• Cover costs related to the removal of unlawful non-citizens, if applicable.

• Cooperate fully with inspectors during any investigation into your compliance with sponsorship obligations.

Monitoring and Compliance

The Department of Home Affairs actively monitors all standard business sponsors to ensure ongoing compliance. Monitoring may continue during the sponsorship period and for up to five years after it ends. Sponsored employees are also monitored to ensure they adhere to the conditions of their visa.

If you fail to meet your sponsorship obligations, the Department of Home Affairs may take one or more of the following actions:

• Administrative action – such as cancelling your sponsorship or barring you from sponsoring further visa applicants.

• Enforceable undertakings – requiring you to commit to specific actions to address non-compliance.

• Civil penalties – including infringement notices or court-imposed fines.

The type and severity of action taken will depend on the nature of the breach and whether you are a standard business sponsor or operate under a work agreement.

If you are a party to a work agreement, non-compliance may result in the suspension or termination of the agreement, as outlined in its terms.

Maintaining full compliance with your obligations is essential to continue sponsoring overseas workers and to protect your business from penalties.

What Happens if Sponsorship Obligations Are Not Met?

How Do I Learn More About My Obligations as a Business Sponsor?

Business sponsorship can be complex, so it’s important to seek guidance from professionals who understand the process thoroughly. The experienced team at Wings International has extensive knowledge in business sponsorship and can assist you with your current obligations or help you apply for a new sponsorship. We’re here to make the process clear, compliant, and stress-free.