Business Sponsor Obligations (Subclass 482 & 494 Visas)

Employer discussing sponsor obligations with sponsored employee in an Australian workplace

Key Sponsorship Obligations

If you are a standard business sponsor, sponsoring workers for Subclass 482 (Skills in Demand / Temporary Skill Shortage) or Subclass 494 (Skilled Employer Sponsored Regional) visas you are obliged to comply with strict sponsorship obligations under Australian Migration Law.

These obligations apply for the entire period of sponsorship and are designed to ensure fair treatment of overseas workers and protect the local labour market.

Paying Sponsored Workers Correctly

As a business sponsor, you must ensure your employee is paid fairly and in line with Australian standards.

This means:

  • Paying at least the salary listed in the approved nomination and contract signed at the time of nomination
  • Paying a market salary rate (equivalent to an Australian worker)
  • Providing fair employment conditions (equivalent to an Australian worker)

Ensuring the Role is Genuine

You must ensure the sponsored worker:

  • Works in the nominated occupation only
  • Performs duties consistent with that role

You cannot:

  • Move them into a different occupation without a new nomination

Keep Accurate Records

Sponsors must keep detailed records, including:

  • Employment contracts
  • Payslips and salary payments
  • Duties performed
  • Work locations
  • Any non-monetary benefits

Records must generally be kept for up to 5 years.

Providing Information to the Department

If requested by the Department of Home Affairs, you must:

  • Provide documents and records
  • Respond within the required timeframe

Failure to comply can result in penalties or cancellation of your sponsorship.

Notifying the Department of Changes

You must notify the Department within 28 days if certain events occur, including:

  • Employment ends (or is expected to end)
  • The employee does not commence work
  • There are significant changes to duties (e.g. similar position, same occupation)
  • Business structure changes (e.g. new director, insolvency, or new ABN)
  • Contact and address details change

Not Passing Costs to the Employee

Sponsors must not recover or transfer certain costs to the visa holder or any other person.

This includes:

  • Sponsorship approval costs
  • Nomination fees
  • Skilling Australians Fund (SAF) levy
  • Recruitment costs related to the visa

These costs must be paid by the sponsoring business.

When bsubmitting a standard business sponsorship or nomination application, the Sponsor is declaring that they have not transferred or recovered arranged to recover any costs.

In addition when submitting a visa application, the Worker is declaring they have not paid or agreed to pay any of these costs. If either the sponsor or the worker then proceeds to contravene these declerations, they may be held to have given a false decleration. This has additional concequences, including on the visa holders part, visa cancellation and a period of exclusion from applying for further visas.

No Discriminatory Recruitment Practices

You must not:

  • Prefer overseas workers over suitable Australian candidates
  • Use recruitment practices that disadvantage local workers

This is a key compliance requirement for all sponsors and is a significant factor in the requirement of Labour Market Testing (LMT).

Ensuring Proper Employment Arrangements

Sponsored workers must:

  • Be directly employed by your business (or an associated entity, where allowed)

This ensures the role remains genuine and consistent with the approved nomination.

When Do Sponsor Obligations Apply?

Your obligations start:

  • When the nomination is approved, or
  • When the visa is granted (if later)

They generally end when:

  • The employee stops working for you, or
  • The employee is granted a different visa

Why Compliance Matters

Failing to meet your 482 or 494 sponsor obligations can result in:

  • Civil penalties and fines
  • Cancellation of your sponsorship approval
  • Being barred from sponsoring overseas workers for a period of time in the future

Need Help Managing your Sponsorship Obligations?

Understanding sponsor obligations can be complex, especially as your business grows or your workforce changes

* This guide provides general information only and does not constitute legal advice. Visa requirements and policies change regularly, and advice should be tailored to individual circumstances.