News & Insights
At MSM Legal, we assist businesses of all sizes and across a range of industries to sponsor skilled workers to work in Australia. One of the most common misconceptions we hear is that only large companies can sponsor overseas workers.
In fact, businesses of different sizes may be eligible to become a Standard Business Sponsor (also referred to as an SBS) and sponsor skilled workers under visas such as the Skills in Demand (subclass 482) visa.
So, what are the key factors in determining whether a business can become a Standard Business Sponsor? We are glad you asked.
- The business must be legally established
The business must be legally established and have the appropriate registrations for its business structure.
The Department may consider information such as the business’s registration details, ownership and structure when assessing whether the business is legally established.
- The business must be actively operating
Having an ABN or registered company alone is not enough. The business must be able to demonstrate that it is genuinely operating.
The Department may consider the business’s financial position, trading activities, business premises, employees, contracts and other evidence of its day-to-day operations.
- Small businesses can also sponsor
There is no general minimum number of employees or minimum turnover requirement for becoming a Standard Business Sponsor.
A small business may therefore be eligible to sponsor an overseas worker, provided that it can demonstrate that it is genuinely operating and meets the relevant sponsorship requirements.
- New businesses may also be eligible
We often hear from start-ups and recently established businesses that believe they need years of trading history before applying for sponsorship. While additional evidence may be required, a new business is not automatically excluded from becoming a sponsor.
Newly established businesses may also be eligible. However, as they may have limited trading and financial history, the Department may look more closely at the business’s operations, business plan, financial position, contracts, premises and staffing arrangements.
- There should be no relevant adverse information
The Department will also consider whether there is any adverse information about the business, or anyone associated with it that may affect its suitability as a sponsor.
This can include matters relating to compliance with Australian laws or previous sponsorship obligations. Where adverse information exists, the Department will consider whether it is reasonable to disregard that information.
What obligations will you have as a sponsor?
Becoming an approved Standard Business Sponsor also comes with ongoing obligations.
These include obligations relating to:
- keeping records and providing information when required;
- notifying the Department of certain changes;
- ensuring sponsored workers receive appropriate terms and conditions of employment;
- ensuring sponsored workers work in their nominated occupation;
- not recovering certain sponsorship and recruitment costs from sponsored workers; and
- paying reasonable travel costs for a sponsored worker to leave Australia in certain circumstances.
Becoming a Standard Business Sponsor can provide businesses with access to a broader pool of skilled workers where suitable skills are difficult to source locally.
However, sponsorship also involves ongoing responsibilities. Before applying, businesses should ensure that they understand both the eligibility requirements for becoming an approved sponsor and the obligations they will be required to meet once approved.
If your business is considering sponsoring an overseas worker, contact MSM Legal to arrange an initial consultation. We can assess your eligibility, explain the sponsorship process and help you understand your obligations before you apply.