How to Become a Standard Business Sponsor in Australia: A Step-by-Step Employer Guide

Before an Australian employer can sponsor an overseas worker on a Temporary Skill Shortage (482) visa or nominate a worker for permanent employer-sponsored visas, the business must be an approved Standard Business Sponsor (SBS). Without this approval, no worker can be nominated or sponsored — it's the essential first step.

Here's exactly what's involved, what to expect, and how to set your business up for success.

What Is a Standard Business Sponsor?

A Standard Business Sponsor is a business that has been approved by the Department of Home Affairs to sponsor overseas workers under Australia's temporary and permanent skilled migration programs. SBS approval is required for:

• Subclass 482 (TSS) — Temporary Skill Shortage visa

• Subclass 494 — Skilled Employer Sponsored Regional visa

• Subclass 186 — Employer Nomination Scheme (nomination only, not sponsorship)

Who Can Apply to Become an SBS?

To be eligible for SBS approval, your business must be:

• Actively and lawfully operating in Australia

• A legally registered business entity (not a sole trader in most cases)

• Not subject to adverse information or a history of non-compliance

• Able to meet the training benchmark requirements (see below)

The Training Benchmark Requirement

A key obligation for SBS applicants is demonstrating that the business invests in training for Australian employees. There are two ways to meet this:

• Option A: Expenditure — Spend at least 2% of annual payroll on training Australian employees in the 12 months before applying (training must be structured, not on-the-job informal training)

• Option B: Industry Training Fund — Pay an industry training fund levy equivalent to 1% of the total annual payroll

Startups and businesses that haven't been operating for a full year have alternative pathways. Document everything — training invoices, payroll records, and receipts are all important.

Step-by-Step: The SBS Application Process

Step 1: Gather Your Business Documents

Before lodging, collect: ABN registration, business registration documents, financial statements or payroll records, evidence of training expenditure, and details of the business's operations (size, industry, offices).

Step 2: Lodge the Application in ImmiAccount

SBS applications are lodged online through the Department's ImmiAccount portal. The application fee varies but is currently around $420 AUD. You'll need to upload supporting documents and confirm your business details.

Step 3: Departmental Assessment

The Department reviews your application. This typically takes 2–4 weeks for straightforward applications. You may receive a request for further information if documents are unclear or the training evidence is borderline.

Step 4: SBS Approval Granted

Once approved, you receive SBS status valid for 5 years. You can now begin nominating workers for 482, 494, or 186 visas.

Sponsorship Obligations: What Approved Sponsors Must Do

SBS approval comes with ongoing obligations. Failure to meet these can result in suspension or cancellation of your sponsor status:

• Pay sponsored workers market salary rates — not below what an Australian would be paid for the same role

• Ensure working conditions comply with Australian workplace laws

• Notify the Department within 28 days of certain events (e.g., the worker's employment ends, role changes)

• Cooperate with Department inspections and audits

• Not recover the SAF levy, visa application charges, or migration agent costs from the sponsored worker

Frequently Asked Questions

Q: Can a startup become a Standard Business Sponsor?

A: Yes. Startups that haven't been operating for 12 months can still apply but must show they have a genuine, operating business and commit to meeting training obligations going forward. The Department may request a business plan or financial projections.

Q: How long does SBS approval take?

A: Standard processing is typically 2–4 weeks. However, during peak periods or if additional information is requested, it can take 6–8 weeks. We recommend applying for SBS approval well before you need to nominate a worker.

Q: Can a sole trader become a Standard Business Sponsor?

A: Generally no. SBS approval is typically available to companies and partnerships. However, there are limited exceptions. If you operate as a sole trader, speak with a migration agent about your options.

Q: What happens if our SBS status is cancelled?

A: Cancellation means you can no longer sponsor workers. Any workers you have on 482 or 494 visas will have their immigration status affected and will need to either find a new sponsor or leave Australia. This is why maintaining compliance is critical.