Employer Sponsorship: 4 Steps Australian Employers Must Follow in 2026

TL;DR / Key Takeaways

• Sponsorship involves 3 separate applications: Sponsorship, Nomination, and the worker's Visa. All must be approved.

• Labour Market Testing (LMT) is mandatory for most 482 and 494 nominations. You must advertise the role for 28 consecutive days across 2 platforms within the 4 months before lodging.

• Genuine Need of Position is the number one reason nominations get refused. The role must exist as a real business necessity, not created for the candidate.

• From 1 July 2026, the Core Skills Income Threshold (CSIT) is $79,499 and the Specialist Skills Income Threshold (SSIT) is $146,717.

• The SAF Levy costs small businesses $1,200 per year of the visa (turnover under $10M) or $1,800 per year (turnover $10M or more). This is non-refundable.

• LMT mistakes like advertising for 27 days instead of 28 result in mandatory refusal. There is no room for negotiation, and you lose the SAF Levy.

• Australia's vacancy fill rate fell to 68.2% in March 2026, meaning employers are increasingly turning to overseas talent to fill genuine gaps.

Sponsoring an overseas worker in Australia requires employers to complete three sequential applications: becoming an approved Standard Business Sponsor, nominating a genuine position, and supporting the worker's visa application. Before you can nominate, you must complete Labour Market Testing, which means advertising the role for at least 28 days across two platforms and proving the position is a genuine business need. From 1 July 2026, the salary floor for most sponsored roles is $79,499. Here are the four steps every Australian employer must follow.

Step 1: Become an Approved Standard Business Sponsor

Before you can sponsor anyone, your business must be approved as a Standard Business Sponsor (SBS) by the Department of Home Affairs.

The SBS application costs $420 and is valid for 5 years. Once approved, you can sponsor multiple workers under the same sponsorship. This is a mandatory employer cost, and you cannot pass it on to the worker.

What the Department assesses:

• Your business is lawfully established and actively operating in Australia

• You have the operational capacity to meet sponsorship obligations

• You have a clean record of compliance with Australian workplace and immigration law

Documents you will typically need:

• Business registration and ABN

• Financial statements or BAS statements

• Organisational chart

• Evidence of trading activity

Many employers assume the sponsorship application is the hard part. It is not. The SBS is a gateway. The nomination stage, where you must prove the role is genuine and LMT was done correctly, is where most applications fail.

Step 2: Complete Labour Market Testing (LMT) Correctly

Labour Market Testing is a mandatory requirement for most Subclass 482 (Skills in Demand) and Subclass 494 (Regional Employer Sponsored) nominations.

The purpose: Prove that you genuinely tried to hire an Australian citizen or permanent resident before looking overseas. The 28-Day Rule, you must advertise the nominated position for at least 28 consecutive days.

Critical detail: The ads must have been published within the 4 months immediately before you lodge the nomination application. If your ads are older than 4 months, they are legally expired.

If you advertise for 27 days instead of 28, the Department must refuse the nomination. There is no discretion. You will also lose the SAF Levy, which can be thousands of dollars.

The Two-Platform Rule

You must advertise on at least two separate platforms with national reach. Acceptable platforms include:

• SEEK

• Indeed

• LinkedIn (paid tier preferred; if using free tier, save a date-stamped screenshot showing the live URL)

• Workforce Australia (the government's official database)

• Industry-specific national recruitment sites

What Your Ad Must Include

Each advertisement must state:

• Job title and a description of duties

• Salary or salary range (unless the salary exceeds the high-income exemption threshold of $96,400)

• Skills and experience required, matching the ANZSCO description for the occupation

• The name of the approved sponsor

Evidence You Must Keep

This is where most employers slip up. For every LMT campaign, retain:

• PDF copies or date-stamped screenshots of each advertisement on the day it was first posted and the day it was taken down

• Invoices or receipts for paid advertising

• A recruitment summary table listing: total applications received, number of Australian applicants, and reasons why Australian applicants were not suitable

• The actual text used in each ad

Comparison Table: LMT Compliance Checklist

Step 3: Prove the Position is Genuine (The Number 1 Refusal Reason)

The Genuine Need of Position requirement means the role must exist as a real business necessity. It cannot be a position created specifically for the overseas worker you want to sponsor.

• Is the role full-time and ongoing? For 186 (ENS) nominations, the position should be expected to exist for at least 2 years.

• Does the role fit within your business structure? You must show how the position contributes to your operations.

• Is the salary consistent with market rates? The nominated salary must meet both the CSIT and the Annual Market Salary Rate (AMSR) for the occupation.

• Did you genuinely try to hire locally? This links directly back to your LMT evidence.

What strengthens a Genuine Position claim:

• A clear job description aligned with the ANZSCO code

• Evidence the role was advertised and local candidates were assessed

• Business growth or restructuring documents explaining why the role is needed

• An organisational chart showing where the position fits

The genuine need test is being applied with "real teeth" in 2026. The Department is scrutinising small businesses especially closely, particularly where the sponsored worker is a family member or where the role appears tailor-made for one person.

Step 4: Meet Salary Thresholds and Understand Your Ongoing Obligations

The 2026 Salary Thresholds

1. The CSIT (or SSIT for Specialist Skills stream)

2. The Annual Market Salary Rate (AMSR) for the occupation

3. Any applicable industry award

The CSIT is indexed annually against ABS Average Weekly Ordinary Time Earnings (AWOTE) data. It increases automatically each year, and no new legislation is required. Employers should budget for these annual increases.

Your Ongoing Sponsorship Obligations

You must notify the Department within 28 days if:

• The sponsored worker's employment ends or is expected to end

• There are changes to the worker's duties

• You have paid return travel costs for the worker or their family

• You become insolvent

• There are changes to your business structure

You must also:

• Keep accurate records of your sponsorship compliance

• Cooperate with Department monitoring and audits

• Ensure the worker is paid in accordance with Australian workplace laws

Not allow the worker to work in a role that does not match the nomination

Failure to meet these obligations can result in sanctions, including barring you from sponsoring workers in the future.

The SAF Levy: What Employers Must Pay

The Skilling Australians Fund (SAF) Levy is a mandatory training contribution paid at the time of nomination. It is the employer's cost, and passing it on to the worker is illegal.

Example: A 4-year 482 visa for a small business costs $4,800 in SAF Levy (4 x $1,200). The SAF Levy is non-refundable. If your nomination is refused due to an LMT error, you lose this money.

For a small business sponsoring one worker on a 4-year 482 visa, total government costs start at $5,550 ($420 SBS + $330 nomination + $4,800 SAF Levy). This does not include legal fees, migration agent costs, or advertising spend.

Conclutions

Sponsoring an overseas worker is not just a recruitment decision. It is a compliance project. The four steps are clear: become an approved sponsor, complete LMT correctly, prove genuine need, and meet salary and obligation requirements. But each step carries refusal risk if documentation is incomplete or deadlines are missed.

What to watch in the next 12 months:

• Annual CSIT and SSIT indexation. Thresholds will continue to rise each July.

• Occupation list updates. The CSOL is reviewed periodically.

• Stricter genuine need enforcement, particularly for small businesses.

How Genuine Solutions can help: We handle the full employer sponsorship compliance lifecycle, from LMT advertising and evidence retention to Genuine Need of Position reports and nomination documentation preparation. We work alongside your Registered Migration Agent to ensure your application is compliant and audit-ready from day one.

Ready to sponsor? Reach out to our Brisbane team for a same-day response on your sponsorship enquiry.

FAQ: Employer Sponsorship in Australia

Q1: How long does employer sponsorship take in Australia?

The SBS application can take several weeks to months depending on business complexity. The nomination and visa stages add further processing time. Total timeline varies significantly, so plan for at least 3 to 6 months from start to visa grant.

Q2: What happens if Labour Market Testing is done incorrectly?

The nomination must be refused. There is no discretion to overlook errors like advertising for 27 days instead of 28. You will also lose the SAF Levy, which is non-refundable.

Q3: Can a new business sponsor an overseas worker?

Yes, if the business is lawfully established and actively operating. New businesses face closer scrutiny on the genuine need requirement and may need to provide additional evidence of operational capacity, including business plans and financial forecasts.

Q4: What is the CSIT threshold for 2026?

From 1 July 2026, the Core Skills Income Threshold is $79,499. The Specialist Skills Income Threshold is $146,717.

Q5: Do I need a migration agent for sponsorship?

It is not legally mandatory, but the compliance requirements, especially LMT evidence, genuine position documentation, and nomination preparation, are complex. Errors lead to refusal and lost fees. A registered migration agent or a compliance-focused recruitment partner can significantly reduce risk.

Q6: What visa pathways are available for employer sponsorship?

• Subclass 482 (Skills in Demand): temporary, 1 to 4 years, route to PR

• Subclass 186 (Employer Nomination Scheme): permanent residency

• Subclass 494 (Regional Employer Sponsored): regional areas, route to PR via 191

Q7: Can I sponsor a worker for a role that is not on the skilled occupation list?

No. The occupation must be on the relevant skilled occupation list, such as the Core Skills Occupation List (CSOL) for the 482 Core Skills stream, or the relevant list for 186 and 494.

Q8: How much does it cost to sponsor one worker?

For a small business sponsoring a 4-year 482 visa: SBS $420 + Nomination $330 + SAF Levy $4,800 = $5,550 in government fees. This excludes advertising costs and any professional fees.