For example, a Singapore-headquartered family trading group plans to open a Melbourne branch. It wants to send its finance director of ten years to lead the Australian business, and to transfer an IT manager from Malaysia to set up systems. The board has practical questions: can the company sponsor staff before it has any Australian revenue? What salary is required? Must it advertise in Australia first? And can both employees later apply for permanent residence?
This article covers theSkills in Demand visa (subclass 482), the permanent Employer Nomination Scheme visa (subclass 186), and sponsorship options for Asian companies establishing operations in Australia.
The streams of the Skills in Demand (482) visa
The Skills in Demand visa replaced the Temporary Skill Shortage (TSS) visa on 7 December 2024 and can be granted for up to four years. The streams currently operating are:
- Specialist Skills stream:for highly paid professionals earning at least the Specialist Skills Income Threshold (SSIT). Trades, machinery operator and driver, and labourer occupations are excluded.
- Core Skills stream:the occupation must be on the Core Skills Occupation List (CSOL) and the salary must meet the Core Skills Income Threshold (CSIT).
- Labour Agreement stream:for employers that have a labour agreement with the government.
The government proposed an Essential Skills stream for lower-paid critical roles, but at the time of writing it has not been implemented as a general stream. Applicants generally need at least 12 months of relevant work experience and must meet the English requirement. If employment ends, holders generally have up to 180 days to find a new sponsor.
Income thresholds and market salary
The thresholds are indexed each year in line with Average Weekly Ordinary Time Earnings (AWOTE). From 1 July 2026, theCore Skills Income Threshold is $79,423(previously $76,515) and theSpecialist Skills Income Threshold is $146,576(previously $141,210). The thresholds also apply to related visas such as the subclass 186.
Meeting the threshold is not enough. The employer must also show the salary is no less than theannual market salary ratepaid to Australian workers in the same role. Because the thresholds change every year, check the current figures before lodging a nomination.
Labour market testing
Unless an exemption applies, the employer must advertise in Australia before nominating, to show a suitable local worker is not readily available. Advertising generally must occur within the four months before nomination, with each advertisement running for at least 28 days. There are specific rules on content, platforms and record-keeping, and common problems include ads taken down early or duties that do not match the nomination.
Under Australia’s international trade obligations, some cases are exempt, such as citizens of certain countries, intra-corporate transferees, or senior executives sent to establish a business. Whether an exemption applies must be analysed case by case, by nationality, role and group structure.
Asian companies opening in Australia: sponsorship options
The employer must first be approved as aStandard Business Sponsor. An overseas company not yet operating in Australia can apply as an overseas business sponsor if it is lawfully established and operating overseas and its purpose is to establish operations in Australia or fulfil a contract. However:
- Workers sponsored by an overseas business sponsor must be employed directly by that overseas business, not an associated entity.
- An overseas business sponsor cannot nominate workers for the permanent subclass 186 visa. If permanent residence is the plan, an Australian entity (such as a Pty Ltd company) generally needs to be set up to act as sponsor.
- A newly established Australian company can also apply for sponsorship, but must show the business is genuinely operating and pay the Skilling Australians Fund (SAF) levy at nomination.
Moving to permanent residence: the subclass 186 visa
- Temporary Residence Transition stream:generally requires at least two years of sponsored full-time employment in the three years before applying, being under 45 at application, and Competent English.
- Direct Entry stream:generally requires at least three years of relevant work experience and a positive skills assessment, and the applicant must also be under 45.
- Age exemptions:some people are exempt, such as high-income earners, certain academics and researchers, and some medical practitioners in regional areas.
Employers in regional areas may also consider the Skilled Employer Sponsored Regional visa (subclass 494), which leads to the permanent subclass 191 visa.
Sponsor obligations
- Pay at least the approved nominated salary and provide the nominated terms.
- Ensure the worker performs the nominated occupation.
- Notify the Department of prescribed events within the required time, such as the worker leaving or the role changing.
- Keep records and cooperate with Departmental inspections.
- Do not recover sponsorship costs from the worker or seek any benefit in exchange for sponsorship.
Breaches can lead to penalties, cancellation of sponsorship, or a bar on future sponsorship.
Checklist for companies and employees
- Confirm whether the occupation is on the CSOL or qualifies for the Specialist Skills stream.
- Set the salary package against the current threshold and market rate.
- Work out whether labour market testing is needed or an exemption applies.
- Decide whether the overseas business or an Australian entity will sponsor, bearing in mind any future permanent residence plans.
- Prepare the employee’s employment evidence, qualifications and English results, and check names and dates are consistent.
- Set up compliance processes to meet sponsor obligations.
Frequently asked questions
Can our company sponsor staff before it operates in Australia?
It can apply as an overseas business sponsor if the purpose is to establish operations in Australia or fulfil a contract. Workers must be employed directly by the overseas business, and this route cannot be used to nominate for the subclass 186 visa.
What are the income thresholds from 1 July 2026?
The Core Skills Income Threshold is $79,423 and the Specialist Skills Income Threshold is $146,576. They are adjusted every year, and the salary must also meet the market rate.
Is there an Essential Skills stream?
At the time of writing it has not been implemented as a general stream. Lower-paid roles generally need to consider other pathways such as labour agreements.
How soon can a 482 holder apply for permanent residence?
Under the 186 Temporary Residence Transition stream, generally after at least two years of sponsored full-time work within the three years before applying, provided age, English and salary requirements are met.
Can an employee aged over 45 apply for a 186?
Applicants generally must be under 45, but some are exempt, such as high-income earners and certain academics and researchers. It needs to be assessed individually.
Chua Tan Associates has practised in Melbourne since 1990. Our team includes two Law Institute of Victoria Accredited Specialists in Immigration Law, and we advise businesses and individuals in Mandarin, Cantonese and English. Whether you are an Asian company planning an Australian branch or a senior professional weighing an employer-sponsored move, you can meet us in person at our Melbourne CBD office at 262 Queen Street or consult by video from overseas. Call 03 9602 3988 or contact us online.
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This article is general information only and is not legal advice.
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