Are you thinking about sponsoring an overseas worker to help fill a position in your business which you are unable to source from the local labour market?
Well, you’ll be pleased to know that there are several skilled visa options available to employers in Australia to sponsor suitably skilled foreign workers in occupations where identified skills shortages are identified.
How So?
You may be able to sponsor an overseas worker for a Subclass 482 Temporary Skill Shortage (TSS) visa, which provides a pathway to permanent residency after two years via a Subclass 186 Employer Nomination Scheme (ENS) visa. The ENS visa consists of three streams, one of which grants immediate permanent residence to your nominated worker.
Or, if your business is located in regional Australia, you may like to consider sponsoring an overseas worker for a Subclass 494 Skilled Employer Sponsored Regional (Provisional) visa. This visa too provides a pathway to permanent residency for your sponsored worker after three years via a Subclass 191 Permanent Residence (Skilled Regional) visa.
If you are considering sponsoring or nominating a foreign worker, it is important to point out that your business must meet prescribed salary-related requirements to be granted nomination approval for the position which you are seeking to fill. This entails paying a minimum salary for visa sponsorship.
Why is this so?
Payment of a minimum wage for a sponsorship visa is designed to ensure that overseas workers on employer sponsored visas are paid the market salary rate. It also ensures that the employer sponsored visa program is not used to undercut the local labour market.
In this article, we summarise the employer sponsored and employer nominated visa options that are available and provide links to further information so that you can learn more about how they operate. We also examine the minimum wage sponsor visa requirements that your business must meet as part of the nomination requirements.
First up, let us explore the employer sponsored and skilled visa programs that are available to help your business meet critical skill shortages.
How Can You Sponsor A Foreign Worker For A Skilled Visa?
Subclass 482 Temporary Skill Shortage Visa
The Subclass 482 Temporary Skill Shortage (TSS) visa is a temporary visa which enables your sponsored worker to live and work in Australia for up to either two or four years, depending on the stream under which you apply. It also provides a pathway to permanent residence after two years if certain requirements are met.
The TSS application process involves three stages, namely:
- As the sponsoring employer, you must apply for, and be approved as, a Sponsor. Alternatively, you may enter into a labour agreement with the Government;
- You must apply to nominate the foreign worker for a position in your business (the nominated occupation must be included on the relevant skilled occupation list or be specified in the labour agreement); and
- The foreign worker must separately apply for the visa.
The above applications can all be lodged at the same time. If your business already has an existing approved sponsorship or labour agreement in place, then only a nomination and visa application are required.
TSS Visa Streams
The Subclass 482 visa comprises of the following streams:
- Short-term stream – for occupations that are included on the Short-term Skilled Occupation list (STSOL);
- Medium-term stream – for occupations that are included on the Medium and Long-term Strategic Skills List (MLTSSL); and
- Labour Agreement stream – as the sponsoring employer, you must enter into a labour agreement with the Department.
Some of the main requirements that apply to the TSS visa program include:
- for the Sponsorship – your business must be lawfully operating in or outside Australia, and no adverse information must be known to the Department about the business (or it is reasonable to disregard);
- for the Nomination – the occupation must be listed on a prescribed skilled occupation list or in the labour agreement that you have entered into with the Government, and in some cases, the foreign worker must obtain a positive skills assessment for their nominated occupation. The position which you are seeking to fill must also be genuine and labour market testing may be required. A minimum salary for sponsorship must also be paid as part of the nomination requirements (this is discussed further below in this article);
- For the Visa – the foreign worker must have the minimum qualifications and/or employment experience as specified for their nominated occupation, in addition to two years of minimum skilled employment experience. They must also meet specified English language requirements.
Also be mindful that as part of the nomination application, your business must pay a training levy (this is in addition to the nomination application lodgement fee).
Please refer to our article on the Subclass 482 – A Guide to Temporary Skill Shortage for further information about this employer sponsored visa program.
Employer Nomination Scheme (ENS)
The Subclass 186 Employer Nomination Scheme (ENS) visa program is an employer nominated visa which grants the foreign worker permanent residence in Australia. It comprises of the following visa streams:
- Temporary Residence Transition (TRT) – this requires that the visa applicant hold a Subclass 482 visa and to have worked for you (as their nominating employer) on a full-time basis for at least two years in the three-year period immediately before lodging the nomination application (there are other specified requirements). The occupation associated with the nominated position must also be in the same 4-digit ANZSCO unit group which formed the basis for granting the Subclass 482 visa;
- Direct entry – this applies if the foreign worker does not qualify for the TRT stream. To qualify under this stream, the foreign worker is required to have at least three years of relevant skilled work experience and a positive skills assessment in their nominated occupation (unless an exemption applies). The occupation associated with the nominated position must also be on the relevant skilled occupation list at the time of nomination. This stream grants immediate permanent residence (unlike the TRT and labour agreement streams, which require the nominee to hold a TSS visa for a certain period before being eligible for an ENS permanent residency visa);
- Labour Agreement – as the nominating employer, you must have a labour agreement in place under this stream. The foreign worker must have the minimum qualifications, experience and English language skills that are suitable to perform the occupation (as set out in the labour agreement). Prospective visa applicants can only be nominated in the occupations listed in the labour agreement. The foreign worker may be eligible for an ENS permanent residency visa if they hold a TSS visa that was issued in accordance with the terms of the labour agreement. Alternatively, the foreign worker may qualify for PR after two years under the TRT stream.
Prescribed salary-related criteria entailing a minimum salary must be met as part of the nomination requirements under the TRT and Direct Entry stream. Where a labour agreement applies, the Department of Home Affairs will take into account any concessions that are outlined in the labour agreement relating to salary or occupation requirements, and any additional requirements that have been imposed in regards to the salary for the foreign worker being nominated for the position.
Note also that a another salary-related requirement that applies to a nomination for both the TRT and Direct Entry streams is that as the nominating employer, you must have the capacity to employ the foreign worker for at least two years and pay at least the annual market salary rate (AMSR) each year (the AMSR is explained further below in this article).
If your business is not registered for GST, this may indicate that the turnover of the business is less than $75,000, which will be relevant when assessing whether your business has the capacity to pay the foreign worker identified in the nomination the annual market salary rate for at least the next two years. Why is this so? Because under tax legislation, entities with a turnover of less than 75,000 are not required to register for GST.
Please refer to our article on the Employer Nomination Migration Scheme to learn more about the ENS visa program.
Skilled Employer Sponsored Regional (Provisional) Visa
The Subclass 494 Skilled Employer Sponsored Regional (SESR) (Provisional) visa is a provisional visa which provides a pathway to permanent residence with the Subclass 191 Permanent Residence (Skilled Regional) visa after three years if the foreign worker satisfies certain criteria at that time. This visa requires your sponsored employee to live and work in a designated regional area of Australia. The SESR visa has a term of five years.
To sponsor a foreign worker under the skilled employer sponsored regional visa program, as the sponsoring employer, your business must meet a number of requirements (which will depend on the stream under which you apply). There are two streams, namely an employer sponsored stream and a labour agreement stream.
Some of the key requirements to be met to sponsor an overseas worker under the employer sponsored stream include the following:
- your business must be an approved standard business sponsor and be an Australian business;
- you must demonstrate that the nominated position is genuine, full-time and likely to exist for five years;
- the sponsored worker must be engaged as an employee under a written contract of employment (unless an exemption applies)
- the nominated position must be located in a designated regional area of Australia;
- the nominated occupation must be on the prescribed skilled occupation list;
- Labour Market Testing must be undertaken (unless an exemption applies);
- a minimum salary for visa sponsorship must be met. Here, you must demonstrate that the Annual Market Salary Rate (AMSR) is at least equal to or greater than the Temporary Skilled Migration Income Threshold (TSMIT). You must also demonstrate that the nominated annual earnings of your sponsored employee will not be less than the AMSR, and will be equal to or greater than the TSMIT; (this minimum salary for sponsorship requirement is discussed further below in this article);
- an additional minimum salary for visa sponsorship criterion must be met in that an independent body (called a Regional Certifying Body or RCB) must confirm that the sponsored employee will be paid at least the AMSR;
- a Skilling Australian Fund (SAF) levy applies ($3,000 if your business turnover is less than $10 million, and $5,000 payable is for businesses with a turnover above this threshold); and
- the terms and conditions of employment for your sponsored foreign worker must be no less favourable than for Australian employees.
The labour agreement stream is for employers in regional Australia who have a labour agreement with the Government to source skilled overseas workers to work in an occupation specified in the labour agreement for five years. As with the employer sponsored stream, Subclass 494 visa holders under this stream are also eligible to apply for permanent residence after three years.
The key requirements that the sponsored employee must satisfy to be eligible for a subclass 494 skilled employer sponsored regional visa are that they must:
- be aged under 45 years at time of application (unless an exemption applies or in accordance with the labour agreement);
- have a positive skills assessment for a skilled occupation on the relevant skilled occupation list (unless an exemption applies or as specified in the labour agreement);
- have a minimum of three years employment experience in the nominated occupation on a full-time basis and at the skill required for the occupation (unless an exemption applies or as specified in the labour agreement); and
- have a minimum level of Competent English (unless an exemption applies or as specified in the labour agreement).
To learn more about the SESR visa program, please see the following articles.
Skilled Regional Visa Australia
Regional Sponsored Visa Requirements
Now that we have covered the employer sponsored and employer nominated visa options that are available, we now turn to the minimum wage for sponsorship visa requirements that must be met as part of the nomination application for a subclass 482, 186 and 494 visa.
Minimum Salary For Visa Sponsorship Requirements
Unless the nominee’s annual earnings are $250,000 or higher, for a subclass 482, 186 or 494 nomination to be approved, the Department must be satisfied that the following minimum wage sponsor visa requirements are met:
- the Annual Market Salary Rate (AMSR) for the nominated occupation has been determined in accordance with prescribed criteria;
- the AMSR, excluding any non-monetary benefits, is not less than the Temporary Skilled Migration Income Threshold (TSMIT), unless it is reasonable to disregard this criterion;
- the nominee’s GAE for the nominated occupation will not be less than the AMSR; and
- the nominee’s GAE, excluding any non-monetary benefits, is not less than TSMIT, unless it is reasonable to disregard this criterion.
In addition, for a nomination to be approved, there should be no information known to the Department, (unless it is reasonable to disregard any such information), that the AMSR, as determined by the sponsor for the nominated occupation, is inconsistent with Australian labour market conditions relevant to the nominated occupation.
Let us now examine each of the above minimum salary for sponsorship criteria in turn.
Determine The Annual Market Salary Rate (AMSR) For The Nominated Occupation
To meet this minimum salary for visa sponsorship requirement, the Department must be satisfied that as the sponsoring business, you have determined the AMSR in accordance with the migration provisions.
Let us start by defining the AMSR.
What Is The AMSR?
The AMSR is defined as the earnings that an Australian worker earns (or would earn) for performing equivalent work on a full-time basis for a year, in the same workplace and at the same location.
Earnings for this purpose means the amount that is guaranteed, which is referred to as Guaranteed Annual Earnings (GAE).
As the sponsor, you must have determined what the equivalent Australian worker does earn (or would earn). This figure is to be provided in the nomination application form, and is to include a breakdown of monetary and non-monetary benefits that would be included in the salary package.
You must also explain how you have used the method (as outlined in the migration provisions) to determine the AMSR.
Types Of Evidence Of AMSR
The type of information that is relevant in determining the AMSR will depend on whether there is an equivalent Australian worker performing equivalent work on a full-time basis in the same workplace at the same location.
The following types of evidence can be used to determine the AMSR (this should be referenced in the nomination application, with supporting evidence provided where appropriate).
If There Is An Equivalent Australian Worker
- where the salary is determined in accordance with an enterprise agreement or an industrial award – the name and a copy of the agreement or award as recorded by the Fair Work Commission (where applicable) should be provided;
- where an enterprise agreement or industrial award does not apply – you should provide an explanation of the salary arrangements as well as copies of relevant employment contracts and pay slips for other Australian workers performing equivalent work in your workplace.
Also be mindful that if, as the sponsor, you have either a more or less experienced Australian worker than the nominee doing similar work at a lower or higher pay grade, then they are not considered an equivalent Australian worker.
If There Is No Equivalent Australian Worker
- where the salary is determined in accordance with an enterprise agreement or an industrial award – the name and a copy of the agreement or award as recorded by the Fair Work Commission (where applicable) should be provided;
- where an enterprise agreement or industrial award does not apply – you should explain how you have used relevant information to determine what an equivalent Australian worker would be paid. As the sponsor, you should also provide at least two of the following forms of evidence:
- Labour Market Insights information (https://labourmarketinsights.gov.au/)
- advertisements from the last six months for equivalent positions in the same location;
- remuneration surveys completed by a reputable organisation; or
- written advice from registered unions or employer associations.
The AMSR Must Not Be Less Than The TSMIT
Under this minimum wage for sponsorship visa criterion, the monetary benefits for the equivalent Australian worker for the nominated occupation must be at least TSMIT (which is currently set at $53,900).
What Are Non-Monetary Benefits?
Non-monetary benefits are benefits (other than the payment of money) to which the person is entitled in return for the performance of work, or for which a reasonable money value has been agreed by the person and their employer.
Note that according to Immigration policy, the Department has the descretion to disregard this minimum wage sponsor visa requirement if the total AMSR (i.e. the complete salary package for the equivalent Australian worker) is greater than the TSMIT, and it is reasonable to do so.
The Foreign Worker Cannot Be Paid Less Than The AMSR
Under this minimum salary for sponsorship criterion, the foreign worker must not be paid less than what an equivalent Australian worker would be paid in the nominated occupation.
This means that the nominee’s GAE must not be less than the AMSR.
This minimum salary for visa sponsorship requirement cannot be waived. If the foreign worker will be paid less than the equivalent Australian worker, the nomination will be refused.
Monetary Benefits For The Foreign Worker Must Be At Least TSMIT
Under this minimum salary for sponsorship requirement, the nominee’s GAE, excluding any non-monetary benefits, must not less than the TSMIT (unless it is reasonable to disregard).
This means that any non-monetary benefits included in the nominee’s salary package (such as accommodation, clothing, meals, travel etc.) must be additional amounts, over and above the TSMIT. Only monetary benefits can be included as part of the TSMIT.
Get More Information
Skilled Visa Options For Selected Occupations
Please refer to our series of articles on the skilled visa options that are available for selected occupations below:
Visa Options For Professionals
Skilled Trade Visa Options In Australia
Australian Immigration And Visa Options For Doctors
Australian Immigration And Visa Options For Nurses
Australian Visa Options For Engineers
Migrate To Australia As A Plastics Moulder Machine Operator, Fabricator, Welder Or Technician
Migrate To Australia As A Pig Farmer Or A Senior Piggery Stockperson
Migrate To Australia As A Small Engine Mechanic
Employer Sponsored Regional Visa
For further information on the subclass 494 regional employer sponsored visa, please see the following articles:
Skilled Regional Visa Australia
Regional Sponsor Migration Scheme
Regional Sponsored Visa Requirements
Requirements For Regional Employer Sponsored Skilled Visas
Employer Sponsored Visa
To learn more about an employer sponsorship visa, please see the following articles:
Employer Nomination Migration Scheme
Employer Sponsor Visa Requirements
Changes To 457 Temporary Work Skilled Visa
Business Requirements For Accredited Sponsorship
Does 482 Visa Require Skills Assessment
Subclass 482 – A Guide to Temporary Skill Shortage
Permanent Residence Eligibility Extended For Certain Subclass 457 And 482 Visa Holders
How To Sponsor An Employee For A Work Visa Or Permanent Residency
Overview Of Australian Work Visas And Employer Sponsorship
Guide To Australian Sponsorship Visa Costs
Labour Market Testing Requirements
Skilled Visa
To learn more about applying for a skilled visa, please see the following articles:
Australian Skilled Migration Visa List
General Skilled Migration Visa Options
SAF Skilling Australians Fund Levy
General Skilled Migration Visa Points
Subclass 190 State Sponsorship Visa
Australian Skilled Occupations List
Australian Permanent Resident Visa Case Study
State Sponsorship Visas In Australia
South Australia State Sponsorship Opportunities
Skilled Regional Visa Australia
Regional Sponsor Migration Scheme
Regional Sponsored Visa Requirements
Visa Options For Professionals
Skilled Trade Visa Options In Australia
English Requirements For Skilled Visas
Australian Visa Options For IT Occupations
Australian Immigration And Visa Options For Doctors
Australian Immigration And Visa Options For Nurses
Australian Visa Options For Engineers
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Contact us to book a no-obligation consultation to find out more about how to sponsor a foreign worker in your business, including the minimum wage for sponsorship visa requirements that must be met.
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In conclusion, we note that the above discussion provides an overview about how to sponsor a foreign worker and the minimum wage sponsor visa requirements that must be satisfied. We also provide links to further information so that you can learn more about how to sponsor an employee in your business.
Australia’s migration laws are complex, and each case is different. We recommend that you seek professional advice if you are seeking to sponsor workers in your business, as being fully informed will give you the best chance of achieving a successful outcome on your case. A migration professional can help you to do this.
For up to date advice on how to sponsor a foreign worker and the minimum wage sponsor visa requirements that must be met, book your confidential consultation with a migration agent in Adelaide. PAX Migration Australia is a leading immigration advice service based in Adelaide.
