Before an Australian (or overseas) business can sponsor an overseas worker on the Skills in Demand visa (subclass 482) or the Skilled Employer Sponsored Regional (Provisional) visa (subclass 494), it needs to be an approved Standard Business Sponsor (SBS). It's the first of three steps in the process — sponsorship approval, then a nomination for a specific role, then the visa application itself — and it comes with real, ongoing obligations once granted.
Getting approved
To become an SBS, a business needs to be legally established and currently operating (in Australia or overseas), and there must be no adverse information about the business or its associated people that would affect its suitability as a sponsor. Australian businesses also need to show a strong record of, or genuine commitment to, employing local labour, and must declare they won't engage in discriminatory recruitment practices. The application fee is currently AUD420.
How long it lasts
SBS approval is valid for five years from the date it's granted. Businesses can also apply for Accredited Sponsor status at the same time or later — a streamlined status for sponsors with a strong compliance history — but accreditation now runs for the same period as the underlying SBS approval rather than its own separate term.
The obligations that come with it
Once approved, a sponsor takes on a genuine set of ongoing obligations, and several of them continue for years after the sponsorship itself ends. In broad terms, a sponsor needs to:
- notify the Department in writing of specified changes (to the business structure, address, insolvency, key personnel, and similar), usually within 28 days;
- ensure the sponsored worker only works in the nominated occupation, under a proper written employment contract;
- pay at least the salary stated in the approved nomination, and no less than an equivalent Australian worker would be paid (this market salary rate obligation applies below a AUD250,000 high-earner threshold);
- not engage in discriminatory recruitment practices;
- keep prescribed records and produce them to the Department on request;
- cover all sponsorship, nomination, recruitment and migration-agent costs itself, rather than passing them on to the visa holder;
- pay reasonable return travel costs for the worker (and sponsored family) if asked; and
- cooperate with Departmental and Fair Work inspectors.
Breaching these obligations carries real consequences — from being barred from further sponsorship or having approval cancelled, through to civil penalty notices, court-ordered penalties, or an Employer Prohibition declaration in serious cases.
Why this matters beyond the paperwork
Because several obligations continue well after a sponsored employee's visa is granted — and some extend for years after the sponsorship itself ends — this isn't a "set and forget" approval. Businesses that plan to sponsor regularly benefit from building proper record-keeping and compliance habits from day one, rather than treating each nomination as a one-off.
Where to from here
If your business is considering sponsoring overseas workers for the first time, or your SBS approval is coming up for renewal, get in touch with our team — it's worth checking your obligations are actually being met in practice, not just on paper.
About Rocket & Ash Immigration Law
At Rocket & Ash Immigration Law, we specialise in helping families, couples, and businesses navigate the complexities of Australian immigration law. Our expertise in visa applications ensures that you receive tailored advice and support throughout your immigration journey.
If you require assistance with your Standard Business Sponsorship Application or a Subclass 482 Work Visa, our experienced team can help.
Please book a free 15-minute discussion with our team if you have further questions.
Written for Ivy Khine Su San, Solicitor LPN: 5514120
This article does not constitute legal advice or create an attorney-client relationship. For up-to-date information, please consult an immigration professional.
