Would you like to find out about how you can sponsor foreign workers for your business? Have you considered an Australian work visa sponsorship? Well the good news is that there are a range of work visa sponsorship options available, with each one targeted to meet a specific need in the Australian labour market, especially as the country recovers from the economic effects of the COVID-19 pandemic, there is a greater push by industry and the Government to focus on skilled migration as a way to fill critical workforce shortages. Skilled migration has been a feature of Australia’s migration program for many years, but now there is an even greater reliance on foreign workers to help the country not only recover from the pandemic, but to grow and reap the benefits of increased economic activity. One of the most important lessons from the pandemic was just how critical migration is to Australia for the country to be able to function. Our ageing population is another important driver of skilled migration to this country, to ensure that Australia has a workforce that is equipped to deal with its future economic needs. All of this is great news for businesses that are unable to recruit suitably skilled staff to fill positions in their business as it provides a new stream of skilled labour.
So what employer sponsored skilled visas are available? One option is the Subclass 482 Temporary Skill Shortage (TSS) visa, which is a temporary employer sponsored visa that provides a pathway to permanent residency after two years via a Subclass 186 Employer Nomination Scheme (ENS) visa under the Temporary Residence Transition (TRT) stream.
Another work visa employer sponsorship option is the Subclass 494 Skilled Employer Sponsored Regional (SESR) (Provisional) visa, where the nominated position is in a designated regional area of Australia. The subclass 494 visa also provides a pathway to a permanent resident visa after three years provided certain criteria are met, via the Subclass 191 Permanent Residence (Skilled Regional) visa.
Alternatively, a foreign worker may be eligible for immediate permanent residence with the ENS visa under the Direct Entry stream.
For the temporary employer sponsored visa options, an employers can either sponsor workers under a standard business sponsorship or a Labour Agreement. Under a labour agreement, an employer can sponsor or nominate suitably skilled overseas workers for an employer sponsored skilled visa in accordance with the terms which have been negotiated with the Department of Home Affairs (the Department) in the executed labour agreement (different types of agreements allow for varying levels of flexibility). One type of labour agreement is a Designated Area Migration Agreement (DAMA), which allows an employer to sponsor a foreign worker in a designated region of Australia in an occupation that is not included on the skilled occupation lists that apply to the standard visa programs discussed above.
Each of the above Australian work visa sponsorship subclasses is subject to a prescribed skilled occupation list. A key requirement to qualify for a work visa sponsorship is the nominated occupation; that is, it must either be included on the skilled occupation list that is prescribed for the work visa employer sponsorship for which they are applying, or it must be specified in a labour agreement.
To qualify for an Australian work visa sponsorship, a key requirement that the sponsored worker must satisfy is that they have the minimum required qualifications, skills and work experience to perform the nominated occupation in Australia. Other requirements for a work visa sponsorship may include English language and age criteria.
Eligible family members may accompany the sponsored worker to Australia as dependent visa holders on a work visa employer sponsorship if they meet specified criteria, including health and character requirements.
Visa Conditions And Obligations
Also keep in mind that your sponsored employee will be subject to specified visa conditions upon grant of an Australian work visa sponsorship. For example, TSS primary visa holders must work only in their nominated occupation (under visa condition 8607).
All SESR visa holders (primary and secondary) must live, work and study only in a designated regional area of Australia (under visa condition 8579). Primary subclass 494 visa holders are also subject to visa condition 8608, which stipulates that they must work only for their sponsoring employer, or for an associated entity (unless an exemption applies).
And although the subclass 186 visa is not subject to any visa conditions around their employment, by lodging a subclass 186 visa, the nominated employee is declaring that they ‘agree to take up the position for at least two years’ following grant of the visa. Further, the Department of Home Affairs (the Department) imposes an obligation on the nominated employee to begin their employment within six months of entering Australia (if the visa was granted offshore), or within six months of the visa grant date (if the visa was granted whilst they were located in Australia).
Note that further visa conditions apply (those illustrated above are just a sample). It is critical that your sponsored employee fully understands the work visa sponsorship conditions that apply, as failing to abide by them may affect any subsequent visa applications that they make. This can be illustrated by the visa grant criteria for the subclass 191 permanent residence visa, which includes the requirement that your sponsored employee has complied with visa condition 8579 (to live, work and study only in a designated regional area of Australia) whilst they held the subclass 494 visa.
In this article, we examine some of the key features and requirements of the main work visa employer sponsorship, including how your sponsored worker can qualify for permanent residency, and we provide links to further information.
Temporary Skill Shortage Visa
The Subclass 482 Temporary Skill Shortage (TSS) visa is a temporary Australian work visa sponsorship which allows the sponsored worker to live and work in Australia for up to either two or four years, depending on which stream you apply for. It also provides a pathway to permanent residence after two years if specified requirements are satisfied. The TSS visa imposes specific obligations to remain employed in the nominated position for the visa term (exemption periods apply in certain circumstances).
To apply for a TSS visa, three applications must be lodged, namely:
- as the sponsoring employer, you must apply for, and be approved as, a standard business sponsor. Alternatively, you may enter into a labour agreement with the Government. One of the main benefits of a labour agreement is that it provides more flexible terms to the standard visa programs;
- you must also apply to nominate the foreign worker for the position; and
- the foreign worker must separately apply for the visa.
All three TSS work visa sponsorship applications can be submitted at the same time. If your business already has an approved sponsorship or labour agreement in place, only a nomination and visa application is required (sponsorships and labour agreements generally last for a period of five years).
TSS Visa Streams
The Subclass 482 work visa employer sponsorship comprises of three visa streams, as follows:
- Short-term stream – if the nominated occupation is included on the Short-term Skilled Occupation list (STSOL). With this visa, the sponsored employee can work in Australia for up to two years (or for up to four years if an international trade obligation applies;
- Medium-term stream – if the nominated occupation is included on the Medium and Long‑term Strategic Skills List (MLTSSL). With this visa the sponsored employee can work in Australia for up to four years; and
- Labour Agreement stream – here as the sponsoring employer, you need to enter into a labour agreement with the Department. This is an alternative to the standard business sponsorship application which is required to sponsor workers under the short-term or medium-term stream. With this visa, your sponsored employee can work in Australia for up to four years for you as the sponsor.
Some of the main requirements that apply to the subclass 482 Australian work visa sponsorship are set out below.
Australian Work Visa Sponsorship Application
As the prospective sponsoring employer, you must be lawfully operating a business, and have a strong record of, or a demonstrated commitment to, employing local labour, and declare that you will not engage in discriminatory recruitment practices. There must also be no adverse information known to the Department about your business, or a person associated with you (or it is reasonable to disregard this information).
Alternatively, the employer can apply for a labour agreement, as outlined above. To learn more about labour agreements, including the different types of labour agreements and the process for applying for one, please refer to our Labour Agreement Visa article.
Nomination Application
As the sponsoring employer, you must satisfy a number of prescribed requirements for nomination approval, which includes the following:
- the entity must be an approved sponsor or have a labour agreement in place;
- the entity must nominate an occupation from a list of eligible skilled occupations, or as specified in a labour agreement;
- there must be no adverse information known to the Department about the business or any person associated with the business;
- the position must be genuine and generally full-time employment;
- the entity must provide a written contract of employment for the proposed sponsored worker;
- the proposed sponsored employee must be employed as a direct employee, or as an employee of an associated entity if the entity is an Australian business sponsor;
- meet requirements relating to the proposed sponsored employee’s nominated salary and employment conditions;
- provide evidence of labour market testing where required (this relates to advertising in the local labour market); and
- not engage in discriminatory recruitment practices.
Visa Application
Short-term Stream
The key requirements to be met by the proposed sponsored worker for grant of the visa include that they must:
- demonstrate that they have at least two years of employment experience in the nominated occupation or in a related field (this should generally be full-time employment completed in the last five years, although the Department may consider part-time employment). The nominated occupation must be included on the STSOL;
- have a relevant skills assessment (if required for your occupation);
- meet the genuine temporary entrant requirement. This is concerned with ensuring that the proposed sponsored employee intends to genuinely reside in Australia temporarily and to comply with their visa conditions; and
- meet an English language requirement (unless they qualify for an exemption).
The nomination application must also be approved.
Medium-term Stream
The key requirements to be met by the proposed sponsored employee for grant of the visa include that they must:
- demonstrate that they have at least two years of employment experience in their nominated occupation or in a related field (should generally be full-time employment completed in the last five years, although the Department may consider part-time employment) and their nominated occupation must be included on the MLTSSL;
- have a relevant skills assessment (if required for their nominated occupation); and
- meet an English language requirement (unless they qualify for an exemption).
The nomination application must also be approved.
Labour Agreement Stream
The key requirements to be met by the proposed sponsored employee for grant of the visa include that they must:
- demonstrate that they have at least two years employment experience in their nominated occupation or in a related field (this can be disregarded if the labour agreement specified otherwise);
- have a relevant skills assessment (if required according to the labour agreement) and
- meet an English language requirement, which is generally the same as that which applies to applicants in the short-term stream unless the labour agreement specifies a different English language competency requirement.
The nominated occupation must be included in a labour agreement between the sponsoring employer and the Government;
To learn more about the TSS visa program, please refer to our Subclass 482 – A Guide to Temporary Skill Shortage article.
How To Qualify For Permanent Residence Under The TSS Visa Program
Your sponsored employee may be eligible for permanent residency via the ENS visa program under the TRT stream if they hold a TSS visa under the short-term, medium-term or labour agreement.
To qualify, they must have worked on a full-time basis for their TSS visa sponsoring employer for at least two out of the last three years.
Alternatively, if your sponsored worker holds a TSS visa that was granted under a labour agreement, you may nominate them for permanent residency in accordance with the terms of the labour agreement.
Employer Nomination Scheme (ENS)
The Subclass 186 ENS visa program is an employer nominated visa which grants your nominated employee permanent residence in Australia. It comprises of the following visa streams:
- Temporary Residence Transition (TRT) – this requires your nominated employee to hold a Subclass 482 visa and to have worked for you on a full-time basis for at least two years (note there are other specified requirements);
- Direct entry – this applies if your nominated employee does not qualify for the TRT stream. To qualify under this stream, the nominee 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). This stream grants immediate permanent residence (unlike the TRT and labour agreement streams, which require your nominated employee 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. Your nominated employee must have the minimum qualifications, experience and English language skills that are suitable to perform the occupation (as set out in the labour agreement). They 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. They may also be eligible to qualify for PR under the TRT stream after two years.
This option requires two applications to be lodged in all cases: one for the nomination (which relates to the position) and one for the visa (which relates to the proposed sponsored employee meeting specified criteria for grant of the visa).
Some of the main requirements that apply include (note these vary depending on which stream you apply under):
- The skilled occupation must be listed on a specified skilled occupation list (under the Direct Entry stream) or in a labour agreement (under the Labour Agreement stream), and the foreign worker must have the minimum qualifications and/or employment experience as specified for the occupation. Alternatively, the nominated occupation must be in the same 4-digit ANZSCO unit group which formed the basis for granting the Subclass 482 visa (under the Temporary Residence Transition stream);
- the nominated employee must be under 45 years of age at the time of application (unless an exemption applies or a labour agreement specifies otherwise);
- A positive skills assessment may be required;
- the nominated employee must have Competent English (unless an exemption applies or a labour agreement specifies otherwise).
For further information on the subclass 186 ENS visa, we recommend that you refer to our article on the Employer Nomination Migration Scheme.
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 your sponsored worker meets specified requirements at that time. The SESR visa requires the sponsored worker to live and work in a designated regional area. The term of the subclass 494 work visa employer sponsorship is five years.
As a SESR visa holder, the sponsored employee can travel to and from Australia on an unrestricted basis over the visa term. They are also entitled to enrol in Medicare.
Like with the TSS application, to apply for a SESR visa, there are three applications:
- Sponsorship application to be lodged by you as the sponsoring employer or alternatively, apply for a labour agreement (as sponsorships and labour agreements generally last for a period of five years, you will need to submit an application for sponsorship or a labour agreement if you do not already have a current sponsorship approval or labour agreement in place);
- Nomination application to be lodged by you as the sponsoring employer (this relates to the nominated position); and
- Visa application to be lodged by the proposed sponsored employee (here they will need to meet visa grant criteria relating to such things as their qualifications, skills, experience, English language proficiency and age).
To qualify for a subclass 494 work visa sponsorship, some of the key requirements that the foreign worker will need to satisfy are that they must:
- be aged under 45 years at time of application (unless an exemption applies or otherwise specified in a labour agreement);
- have a positive skills assessment for a skilled occupation on the prescribed skilled occupation list (unless an exemption applies) or in accordance with a labour agreement;
- have a minimum of three years employment experience in their nominated occupation (this should be on a full-time basis and at the skill required for their occupation) as as otherwise specified in a labour agreement. Generally, you they have gained your experience within the last five years. Note that the Department may consider equivalent part-time work; and
- Have a minimum level of Competent English (unless an exemption applies or as otherwise specified in a labour agreement).
You may sponsor a foreign worker for a subclass 494 skilled employer sponsored regional visa under either an employer sponsored or labour agreement stream.
To sponsor under the employer sponsored stream, as the sponsoring employer, you must also meet a number of requirements, including:
- be an approved Standard Business Sponsor (SBS) and an Australian business;
- demonstrate that the nominated position is genuine, full-time and likely to exist for five years;
- the foreign 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;
- the nominated occupation must be on the relevant skilled occupation list;
- labour market testing must be undertaken demonstrating that you are unable to find a suitably qualified and experienced Australian worker or eligible temporary visa holder is readily available to fill the nominated position (unless an exemption applies);
- unless the foreign worker’s annual earnings will be $250,000 or above, 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);
- the foreign worker’s nominated annual earnings must not be less than the AMSR, and must be equal to or greater than the TSMIT;
- an independent body (called a Regional Certifying Body) must also assess the AMSR; and
- the terms and conditions of employment for nominated overseas workers must be no less favourable than for Australian employees.
Alternatively, 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 discussed above, Subclass 494 visa holders under this stream are also eligible to apply for permanent residence after three years.
As discussed in the introduction to this article, a DAMA enables an employer to sponsor a foreign worker in a designated region of Australia in an occupation that is not included on the skilled occupation lists that apply to the standard visa programs discussed above.
In South Australia, there are two DAMA’s that are currently in place:
- The Adelaide City Technology and Innovation Advancement Agreement – this covers the Adelaide metropolitan region and focuses on Adelaide’s high-tech growth industries, with occupations in the defence, space, advanced manufacturing and technology industries; and
- The South Australian Regional Workforce Agreement – this covers the entire state of South Australia, with occupations in the regional high growth industries in agribusiness, forestry, health and social services, aged care, hospitality, tourism, mining and the construction sectors.
The DAMAs in South Australia provide even more opportunities for you to sponsor foreign workers for an employer sponsored visa.
For further information on the DAMAs in South Australia, please see the following articles:
South Australia DAMA Occupation List
DAMA South Australia Occupation List
DAMA Visa South Australia Requirements
How To Qualify For Permanent Residence Under The SESR Visa Program
To be eligible for a subclass 191 permanent residence visa, the sponsored employee must have held a subclass 494 visa for at least three years.
Other key requirements include that they must:
- have complied substantially with the conditions on their subclass 494 visa and any subsequent bridging visa that they held;
- have complied with visa condition 8579 whilst they held the subclass 494 visa (this condition requires your sponsored worker to have lived, worked and studied only in a designated regional area of Australia); and
- their taxable income must be at least equal to the minimum income threshold for at least three income years whilst they held a subclass 494 visa.
To learn more about the subclass 494 SESR visa, please refer to the following articles:
Skilled Regional Visa Australia
Regional Sponsor Migration Scheme
Regional Sponsored Visa Requirements
Requirements For Regional Employer Sponsored Skilled Visas
Skiling Australians Fund Levy
As the sponsoring employer, you are required to pay a Skilling Australians Fund (SAF) levy as part of the nomination application fee under the following visa programs:
- Subclass 482 Temporary Skill Shortage (TSS) visa;
- Subclass 494 (Skilled Employer Sponsored Regional (Provisional)) (SESR) visa; and
- Subclass 186 Employer Nomination Scheme (ENS) visa.
The Skilling Australians Fund (SAF) levy is payable under both the standard business sponsor and labour agreement sponsor streams of the relevant visa programs.
Please refer to our article on the SAF Skilling Australians Fund Levy for further information.
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
Designated Area Migration Agreement
For further information on the DAMA in South Australia, please see the following articles:
South Australia DAMA Occupation List
DAMA South Australia Occupation List
DAMA Visa South Australia Requirements
Employer Sponsored Regional Visa
For further information on the subclass 494 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
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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In conclusion, we note that the above discussion provides an overview on the Australian work visa sponsorship that are available, including their key features and requirements. We also provide links to further information so that you can learn more about how you can sponsor foreign workers for a work visa sponsorship.
Australia’s migration laws are complex, and each case is different. We recommend that you seek professional advice if you are interested in sponsoring foreign workers for a work visa employer sponsorship, 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 sponsoring workers for your business under an Australian work visa sponsorship and how you can apply, book your confidential consultation with a migration agent in Adelaide. PAX Migration Australia is a leading immigration advice service based in Adelaide.