Employer-sponsored visas let Australian businesses that cannot find suitable staff locally sponsor workers from overseas or already in Australia, and give those workers a pathway to permanent residence. The main visas are the Skills in Demand visa (subclass 482), the Employer Nomination Scheme (subclass 186) and the Skilled Employer Sponsored Regional (Provisional) visa (subclass 494). There are usually three stages: sponsorship, nomination and the visa application. Employers and employees must each meet their own legal requirements, and keep meeting their obligations after the visa is granted.

Legal framework and recent changes

Employer-sponsored visas are governed by the Migration Act 1958 (Cth) and the Migration Regulations 1994 (Cth), with occupation lists, income thresholds and labour market testing requirements set by legislative instrument. Since 7 December 2024, the Skills in Demand visa has replaced the Temporary Skill Shortage (TSS) visa, with these streams:

• Specialist Skills stream: For highly paid roles that meet the Specialist Skills income threshold. No occupation list applies (apart from some excluded occupation groups).
• Core Skills stream: The occupation must be on the Core Skills Occupation List, and pay must meet the Core Skills income threshold and the market salary rate.
• Labour Agreement stream: For employers with a labour agreement with the Government; the requirements can be varied under the agreement.

Income thresholds are indexed on 1 July each year, so use the amount in force at the time of nomination. For how the thresholds have changed, see Income thresholds for employer-sponsored visas: from TSMIT to the Core Skills Income Threshold.

Subclass 186 permanent visa

• Temporary Residence Transition stream: For employees holding a 482 visa (or a former 457 or TSS visa). Since 7 December 2024, applicants need two years' total work in the nominated occupation, and time with different approved sponsors counts, so it need not all be with one employer.
• Direct Entry stream: Generally requires a skills assessment and at least three years' relevant work experience. For people who don't hold a transitional visa or don't meet the Temporary Residence Transition requirements.
• Labour Agreement stream: Handled under the terms of the labour agreement.

Applicants must generally be under 45 (with some exemptions) and meet the English, health and character requirements. For the detailed 186 criteria, see Requirements for the subclass 186 Employer Nomination Scheme.

The process

1. Sponsorship: The employer applies to become a Standard Business Sponsor and must show the business is lawfully operating.
2. Labour market testing: For the Core Skills stream, the employer generally must advertise the position in Australia in the required way before nominating, and keep records, unless an exemption applies.
3. Nomination: Show the position is genuine and the salary is at least the market rate and the income threshold, and pay the Skilling Australians Fund (SAF) levy.
4. Visa application: The employee shows they have the skills for the role and at least one year of relevant work experience (482 Core Skills stream), and meets the English, health and character requirements.

Ongoing obligations for employers and employees

Sponsors must pay the salary in the nomination, keep records, notify Home Affairs of changes within set timeframes and cooperate with compliance investigations. Breaches can lead to fines, a bar on sponsoring or civil penalties. A 482 visa holder who stops working for their sponsor generally must find a new sponsor, get another visa or leave Australia within a set period (currently 180 days). Before an employee changes employers, the new employer's nomination must be approved.

Common issues and risks

• The position doesn't match the nominated occupation, or isn't genuinely needed.
• Pay below the market rate or income threshold, or the employee being asked to pay sponsorship-related costs in any form. Under the Migration Act, 'payment for visas' is unlawful, and both employers and employees can be penalised.
• The employee's work experience doesn't match their skills assessment or CV.
• Miscalculating time worked for the 186 Temporary Residence Transition stream, for example by counting unpaid leave or periods on different visas incorrectly.

Documents you’ll need

Employers usually need business registration and financial documents, an organisation chart, a position description, the employment contract, records of job advertising and evidence of market salary rates. Employees usually need a passport, qualifications, employment references, English test results, a skills assessment (if required), police certificates and health examination results. For other work visa options, see Overview of Australian work visas.

How we help

Chua Tan Associates has practised in Melbourne since 1990. Two of our lawyers are Accredited Specialists in Immigration Law (Law Institute of Victoria). We can assess sponsorship options for employers and employees, prepare sponsorship, nomination and visa applications, advise employers on their compliance obligations, and handle review after a refusal. We work in English, Mandarin and Cantonese. For more information, see our Australian immigration law services page. For an overview of the 482 and 186 visas, see Guide to Australian employer-sponsored visas.

Chua Tan Associates has practised in Melbourne since 1990, acting for clients in Australia and overseas in English, Mandarin and Cantonese. For a confidential consultation, call +61 3 9602 3988 or email chuatan@tpg.com.au. This article is general information only and is not legal advice.

This article is part of the guide: Australian immigration solicitor - See all related guides