How To Become A Standard Business Sponsor In Australia

If your business is looking to employ skilled workers from overseas, becoming an approved Standard Business Sponsor is usually the first step.

It's the approval that allows you to sponsor eligible workers – but it's not the visa itself, and it comes with obligations that continue well after you're approved.

Here is what's involved, and what we generally advise businesses to consider before applying.

Preparing and lodging the application

A business can prepare and lodge a Standard Business Sponsorship application, and once it's approved, the sponsorship is generally valid for five years.

As a guide, these applications typically take around two to three months to be decided (assuming there are no delays). Actual timing depends on the circumstances of the application, so where you have a particular worker in mind, I generally recommend addressing the sponsorship early rather than waiting until you're ready to lodge the worker's visa application.

Sponsoring workers during the period of approval

Once approved, you can sponsor multiple eligible workers under the Subclass 482 (Skills in Demand) visa – and, where relevant, the Subclass 494 regional visa – throughout the five-year period, without applying to become a sponsor again each time.

There is no fixed numerical cap. It is, however, subject to maintaining an appropriate balance of Australian and overseas workers and being able to demonstrate that all sponsored positions are financially viable for the business.

Who can apply

It's most common for Australian businesses to apply, but it's also possible for overseas businesses to become Standard Business Sponsors – provided they meet the relevant criteria. Whether an overseas business is eligible will depend on its particular circumstances, so it's worth assessing the proposed structure before preparing the application.

What the business needs to demonstrate

There are a few core areas assessed as part of the application.

• Lawful and active operation
  The business applying must show that it is lawfully and actively operating.
• No adverse information
  The business must demonstrate that there is no adverse information known in relation to the company. This forms part of assessing whether the business is suitable to take on the responsibilities of sponsoring overseas workers.
• A commitment to employing Australians
  The business must show that it is committed to employing Australians first where suitable local candidates are available, and that it is not engaging in discriminatory recruitment. Sponsorship is intended to address genuine workforce needs, not to displace Australian workers who are available to fill the role.
• Capacity to meet sponsor obligations
  Approval brings ongoing responsibilities. The business is expected to demonstrate that, if its sponsorship is approved, it will have the capacity to adhere to those obligations (including the ability to pay the salaries of future sponsored workers).

Established businesses and start-ups

Both established businesses and start-up businesses can become Standard Business Sponsors. What changes is the evidence used to demonstrate lawful and active operation, which will vary depending on the size and scope of the business and how long it has been trading.

An established organisation with a long trading history will naturally have different evidence available to a recently established business. Being new does not, on its own, prevent a business from becoming a sponsor – the application simply needs to be prepared with the circumstances of that business in mind.

Thinking about becoming a Standard Business Sponsor?

If your business is considering sponsoring workers from overseas, it's worth assessing your eligibility and supporting evidence before you lodge. We can help determine whether your business is likely to meet the requirements, prepare the application, and advise on the next steps for sponsoring individual workers.

Talk to Xemplo Legal about your sponsorship requirements and get a quote for your application.

This article provides general information only and does not constitute legal advice. It does not take into account your specific circumstances and should not be relied on as a substitute for advice tailored to your situation. For advice about your particular circumstances, please contact Xemplo Legal.