How to Become an Approved Sponsor in Australia

A complete guide to the Standard Business Sponsorship application, requirements, costs, and the advantages of becoming an accredited sponsor.

What Is Standard Business Sponsorship?

Standard Business Sponsorship (SBS) is the formal approval that an Australian employer must obtain before they can sponsor overseas workers on employer-sponsored visas such as the Subclass 482 (Temporary Skill Shortage), Subclass 494 (Skilled Employer Sponsored Regional), or Subclass 186 (Employer Nomination Scheme) visa.

Think of it as a licence to sponsor. Without an approved SBS, an employer cannot nominate any overseas worker for an employer-sponsored visa, regardless of how urgently they need to fill a position. The SBS application is the first step in the three-stage employer sponsorship process: sponsorship approval, nomination of the position, and then the worker's visa application.

The Standard Business Sponsorship framework was introduced to ensure that only genuine, lawfully operating businesses with a track record of compliance can access the employer sponsorship program. It protects both the integrity of the migration system and the interests of overseas workers by setting a baseline standard for employers who wish to sponsor.

Once approved, the SBS remains valid for five years, during which the employer can nominate multiple positions and sponsor multiple workers without needing to reapply for sponsorship approval. This makes the initial investment in obtaining SBS approval worthwhile for any employer with ongoing or anticipated needs for overseas workers.

Key Facts About Standard Business Sponsorship

Application fee: $420 • Validity: 5 years • Allows sponsorship of multiple workers • Required before any nomination can be lodged • Applied for through ImmiAccount online

Who Can Apply?

Any business that is actively and lawfully operating in Australia can apply for Standard Business Sponsorship. This includes:

The key requirement is that the entity must be actively and lawfully operating in Australia. A business that exists only on paper, has not yet commenced trading, or is not operating in compliance with Australian law will not be approved.

New Businesses

Newly established businesses can apply for Standard Business Sponsorship, but they may face additional scrutiny. The Department of Home Affairs will want to see evidence that the business is genuinely operating and has a realistic need for overseas workers. New businesses should be prepared to provide comprehensive evidence of their operations, financial position, and business plans to support their application.

Requirements for Approval

The Department of Home Affairs assesses several criteria when determining whether to approve a Standard Business Sponsorship application. Meeting all of these requirements is essential for a successful application.

Lawful and Active Operation

The business must be lawfully operating in Australia. This means holding all necessary registrations, licences, and permits required for the type of business being conducted. The business must also be actively trading, not dormant or in the process of winding up.

Compliance Record

The Department assesses the business's record of compliance with Australian immigration laws, workplace laws (including the Fair Work Act), taxation obligations, and any other relevant regulations. A history of non-compliance with these laws can result in the application being refused.

If the business or any of its associates (directors, officers, or related entities) have previously been found to have breached sponsorship obligations, immigration laws, or workplace laws, this will weigh heavily against the application. However, minor or historical breaches that have been rectified may not necessarily prevent approval.

Financial Viability

The employer must demonstrate that the business is financially capable of meeting its sponsorship obligations, including paying the sponsored worker's salary, meeting superannuation obligations, and covering any travel costs if the worker needs to leave Australia. The Department does not require businesses to be highly profitable, but there must be evidence that the business can sustain the employment of the sponsored worker for the period of the nomination.

No Adverse Information

The Department considers whether there is any adverse information about the business or its associates that would indicate the business is not suitable to be a sponsor. This includes criminal records of directors, insolvency events, and any history of exploiting workers.

Director and Associate Checks

The Department conducts checks on the business's directors, officers, and associates as part of the sponsorship application. Any adverse findings relating to these individuals, including criminal convictions, immigration breaches, or involvement with businesses that have breached sponsorship obligations, can affect the outcome of the application.

Documents You Will Need

A well-prepared application with comprehensive supporting documents is far more likely to be approved quickly and without requests for further information. The specific documents required depend on the type of business, but generally include:

Business Registration and Structure

Financial Evidence

Business Operations Evidence

Compliance Evidence

Step-by-Step Application Process

The Standard Business Sponsorship application is lodged online through the Department of Home Affairs' ImmiAccount portal. Here is a step-by-step guide to the process:

Step 1: Create or Log In to ImmiAccount

If the business does not already have an ImmiAccount, one must be created. This is the online portal through which all sponsorship, nomination, and visa applications are managed. The account should be set up in the name of the business, not an individual.

Step 2: Select the Sponsorship Application

From the ImmiAccount dashboard, select "New Application" and then "Business/Organisation" followed by "Standard Business Sponsorship." This will open the application form.

Step 3: Complete the Application Form

The application form requires details about the business, including:

Step 4: Upload Supporting Documents

Attach all supporting documents to the application through ImmiAccount. Ensure documents are clear, legible, and appropriately labelled. Documents not in English must be accompanied by a certified translation from an accredited translator.

Step 5: Pay the Application Fee

The application fee of $420 is paid online at the time of lodgement. Payment can be made by credit card or other accepted payment methods.

Step 6: Await Decision

After lodgement, the Department will assess the application. They may request additional information or documents. Respond to any requests promptly and comprehensively. Once the assessment is complete, the Department will notify you of the outcome through ImmiAccount.

Tip: Lodge Well in Advance

Do not wait until you have identified a specific worker to begin the sponsorship process. Lodge your SBS application as soon as you anticipate a need for overseas workers. This way, your sponsorship will be approved and ready when you need to nominate a position, saving weeks or months of waiting time.

Costs and Government Fees

The government fees for the Standard Business Sponsorship application and the subsequent stages are as follows:

Fee Type Amount (AUD) When Paid
Standard Business Sponsorship Application $420 At lodgement of SBS application
Nomination Application (482/494) $330 At lodgement of each nomination
Nomination Application (186) $540 At lodgement of each nomination
SAF Levy — Small Business (Temporary, per year) $3,000 At lodgement of nomination
SAF Levy — Large Business (Temporary, per year) $5,000 At lodgement of nomination
SAF Levy — Small Business (Permanent) $5,000 At lodgement of nomination
SAF Levy — Large Business (Permanent) $8,000 At lodgement of nomination

Note: The SBS application fee of $420 is a one-off cost that covers the full five-year sponsorship period. The nomination fees and SAF levy are paid separately each time a new position is nominated. A small business is defined as one with annual turnover of less than $10 million. Fees are subject to change and should be confirmed at the time of application.

Employer Costs vs Worker Costs

The SBS application fee, nomination fee, and SAF levy are all employer costs. The employer cannot recover these costs from the sponsored worker. The worker pays the visa application charge separately. Understanding the total cost of sponsoring a worker is important for budgeting purposes.

Processing Times

Processing times for Standard Business Sponsorship applications vary depending on the completeness of the application, the current workload of the Department, and whether any additional information is requested.

Application Type Typical Processing Time
Standard Business Sponsorship (first-time applicant) 1 to 3 months
Standard Business Sponsorship (renewal) 1 to 2 months
Accredited Sponsor Application 2 to 4 months

Applications that are complete, well-documented, and straightforward are typically processed faster. Complex applications, businesses with compliance issues, or applications where additional information is requested will take longer.

How Long Does Approval Last?

A Standard Business Sponsorship approval is valid for five years from the date of approval. During this period, the employer can nominate as many positions and sponsor as many workers as needed, subject to meeting the nomination requirements for each individual position.

Before the five-year period expires, the employer can apply for renewal. It is advisable to lodge the renewal application at least three months before the current approval expires to ensure continuity. If the approval lapses, the employer will not be able to lodge new nominations until a new SBS application is approved.

If the business undergoes significant changes during the five-year period, such as a change of ownership, a change in business structure, or relocation, these changes must be notified to the Department. In some cases, significant changes may require a new SBS application.

Accredited Sponsor Program

The Accredited Sponsor program is an enhanced tier of sponsorship available to employers who demonstrate an excellent track record of compliance with sponsorship obligations and immigration laws. Accredited sponsors receive priority processing and other benefits that can significantly streamline the sponsorship process.

Benefits of Accredited Sponsorship

Eligibility for Accredited Sponsorship

To be eligible for the Accredited Sponsor program, the employer must generally meet the following criteria:

Is Accredited Sponsorship Worth It?

For employers who regularly sponsor overseas workers, becoming an accredited sponsor can save significant time and administrative effort. Priority processing alone can reduce nomination and visa processing times by weeks or even months. If you sponsor three or more workers per year, the benefits are substantial.

How to Apply for Accredited Sponsorship

The application for accredited sponsorship is lodged through ImmiAccount, similar to the standard SBS application. In addition to the standard SBS requirements, the employer must provide evidence of their compliance track record, HR policies and procedures, and the systems they have in place to manage sponsorship obligations. A migration agent experienced in accredited sponsorship applications can help you prepare a compelling application.

Obligations Once Approved

Becoming an approved sponsor is not just about gaining the ability to sponsor workers. It also comes with a set of legally binding obligations that the employer must comply with throughout the sponsorship period and beyond. Key obligations include:

For a comprehensive guide to sponsorship obligations, see our Employer Sponsorship Obligations page.

Obligations Are Enforceable

Breaching sponsorship obligations can result in fines of up to $165,000 per breach for companies, cancellation of sponsorship approval, and barring from future sponsorship. It is essential to have systems in place to ensure ongoing compliance from the moment your sponsorship is approved.

Common Mistakes to Avoid

Based on our experience assisting employers with SBS applications, here are the most common mistakes that lead to delays, requests for further information, or refusals:

Incomplete Financial Evidence

Many applications are delayed because the employer does not provide sufficient evidence of financial viability. Ensure you include up-to-date financial statements, BAS records, and bank statements. If the business is new, provide a detailed business plan with financial projections and evidence of start-up capital.

Unclear Business Structure

The Department needs to understand who owns and controls the business. Provide a clear organisational chart, company extract, and details of all directors and associates. If the business operates through a complex structure involving trusts, holding companies, or related entities, explain the structure clearly.

Not Addressing Compliance History

If the business or any of its associates have any compliance issues in their history, it is better to address these proactively in the application with an explanation and evidence of remediation, rather than waiting for the Department to discover them during their checks.

Waiting Too Long to Apply

Many employers only think about sponsorship approval when they have already identified a worker they want to sponsor. By then, the SBS processing time adds weeks or months to the timeline. Apply early, before you have a specific candidate in mind.

Failing to Maintain Records After Approval

Some employers focus on getting approved but do not put systems in place to comply with their ongoing obligations. From the moment of approval, you must be ready to maintain records, make notifications, and comply with all sponsorship conditions.

Frequently Asked Questions

Can I nominate a worker before my SBS is approved?

No. The nomination can only be lodged after the SBS application is approved. However, you can prepare the nomination application and supporting documents while waiting for SBS approval, so that the nomination can be lodged immediately once approval is received.

Can I sponsor workers in different occupations?

Yes. Once approved as a Standard Business Sponsor, you can nominate positions in any eligible occupation, provided the position is genuine and meets all nomination requirements. There is no restriction on the number or type of occupations you can nominate.

What if my SBS application is refused?

If your application is refused, the Department will provide reasons for the refusal. Depending on the reasons, you may be able to address the issues and lodge a new application. In some cases, the refusal decision can be reviewed by the Administrative Appeals Tribunal (AAT). A migration agent can advise on the best course of action.

Do I need to be approved before advertising the position?

No. In fact, labour market testing (advertising) should ideally be completed before or during the SBS application process. The advertisements must have been placed within four months before the nomination is lodged, so timing the advertising to overlap with SBS processing can save significant time.

Can I transfer my SBS to a new business entity?

No. Standard Business Sponsorship is specific to the entity that applied. If the business is restructured, sold, or transferred to a new entity, the new entity must apply for its own SBS approval. However, if the change is minor (such as a name change with the same ABN), you may only need to notify the Department.

How many workers can I sponsor on one SBS?

There is no fixed limit on the number of workers you can sponsor under a single SBS approval. However, the Department may question nominations if the number of sponsored workers appears disproportionate to the size and needs of the business. Each nomination must demonstrate a genuine need for the specific position.

Is SBS the same as becoming a labour hire sponsor?

Standard Business Sponsorship covers most employer sponsorship scenarios. However, if you operate as a labour hire (on-hire) company and want to sponsor workers who will be placed with client businesses, additional requirements and scrutiny apply. On-hire sponsorship arrangements must demonstrate that the sponsor exercises day-to-day control over the worker's activities.

Ready to Become an Approved Sponsor?

Getting your Standard Business Sponsorship application right the first time saves weeks of delays and avoids costly refusals. Book a consultation with our registered migration agent to get expert guidance on your sponsorship application.

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