Standard Business Sponsorship: How to Become an Approved Sponsor
Information current as at October 2026. Rules, fees and lists change often, so check your circumstances with us before you act.
Before your business can nominate an overseas worker for a Skills in Demand (subclass 482) visa, you normally need to be an approved sponsor. For most Australian employers this means applying for Standard Business Sponsorship (SBS). The same approval also lets you nominate workers for the Employer Nomination Scheme (subclass 186) and the Skilled Employer Sponsored Regional (subclass 494) visas.
This guide explains who can be approved, the different types of sponsorship, how long approval lasts, what you need to lodge and the most common reasons applications fail. Need advice on your situation? You can book a consultation with our employer team.
Sponsorship is the first of three steps. After approval you lodge a nomination for each position, and then the worker applies for the visa. You can lodge the sponsorship and nomination at the same time, which is common when you want to move quickly.
Who can become a standard business sponsor?
Home Affairs looks at your business structure, how long you have been operating, and whether there is anything adverse about the business or the people associated with it. To be approved you generally need to show that:
- the business is lawfully and actively operating, either in Australia or overseas (an overseas business can be approved in limited circumstances, explained below)
- it has a proper legal structure, such as a company, trust, partnership or sole trader with an ABN, and the people running it can be identified
- there is no adverse information about the business or its associated persons, or it is reasonable to approve the sponsorship despite that information. Adverse information includes past breaches of immigration, workplace, tax or work health and safety laws, insolvency and certain criminal conduct
- the business has a history of complying with its obligations and has not been barred or cancelled as a sponsor
- the business has not engaged in discriminatory recruitment practices and has no history of offering or accepting payment in return for sponsorship
There is no minimum turnover or minimum number of employees. Small businesses, sole traders, start-ups and not for profit organisations are approved every week. What matters is that the business is real, financially sound enough to employ the worker, and has a genuine need for the role.
Types of sponsorship
The right type depends on where your business operates and how many workers you plan to sponsor.
- For businesses lawfully operating in Australia.
- Lets you nominate workers for the 482, 186 and 494 visas.
- Approval is generally valid for five years. A business that has been trading for less than 12 months is usually approved for 18 months instead.
- The government charge is $420.
Most employers start here. Our main site guide to SBS approval has more background.
How to apply for Standard Business Sponsorship
The application is lodged online through ImmiAccount. A well prepared application usually follows these steps.
Documents checklist
| Document | Why it is needed |
|---|---|
| ASIC company extract, trust deed or partnership agreement | Shows the legal entity and who controls it |
| ABN and GST registration details | Confirms the business is registered and trading |
| Recent financial statements or BAS | Shows the business is operating and can pay the worker |
| Lease, contracts, invoices or website and marketing material | Evidence of genuine trading activity, especially for newer businesses |
| Organisational chart | Shows where the sponsored position sits and that the role is genuine |
| Payroll summary or employee list | Supports your workforce information |
| Details of directors and associated persons | Used for the adverse information assessment |
Start-ups should add a business plan, funding evidence and signed customer contracts where they have them. If your business is part of a group, include the group structure so the relationship between entities is clear. Applying in the wrong entity name is one of the most common avoidable problems, so make sure the entity that will employ and pay the worker is the one that applies.
After approval: your obligations begin
Approval comes with legal obligations that start on the day you are approved and some continue after sponsorship ends. In summary, you must pay sponsored workers at least what an Australian would receive for the same work, keep records, notify Home Affairs of certain events within 28 days, ensure the worker works in the nominated occupation, not pass on sponsorship costs, and pay reasonable return travel costs if asked. Our sponsor obligations and compliance guide explains each obligation and how monitoring works.
Before approval expires, you can apply to renew. Renewal is a new application, so keep your records in good order throughout the approval period. If your sponsorship lapses, your existing sponsored workers keep their visas, but you cannot lodge new 482 or 494 nominations, including a new nomination for an existing worker who changes occupation.
Common reasons sponsorship applications are refused
The wrong entity applied
The sponsor must be the business that will employ the worker. If a related company will pay the salary, or the business operates through a trust, the structure must be explained and the correct entity used.
Not enough evidence of trading
Newer businesses are often refused because they cannot show they are actively operating. Contracts, invoices, a lease and bank statements usually help more than a business plan alone.
Undisclosed adverse information
Failing to declare past breaches, insolvency or enforcement action is treated as a serious credibility issue and can lead to refusal even where the underlying issue was minor.
Inconsistent workforce details
Numbers in the sponsorship that do not match payroll or later nominations raise questions about the genuineness of the business and the position.
Payment for sponsorship concerns
Any suggestion that the worker paid, or was asked to pay, for the sponsorship or the job is a serious matter and can lead to refusal, cancellation and penalties.
Frequently asked questions
How long does standard business sponsorship take?
It varies with demand and the quality of the application. A complete application with clear trading evidence is usually decided faster. Nominations are not prioritised under Ministerial Directions 121 and 122, so lodging a decision ready application is the most reliable way to save time. See sponsorship costs and timelines.
Can a sole trader become a sponsor?
Yes. A sole trader with an ABN who is lawfully operating can apply. The sole trader is the sponsor and carries the obligations personally.
Can a business that started six months ago sponsor a worker?
Yes, but approval is usually limited to 18 months, and you will need strong evidence that the business is actively trading and can sustain the position.
Do we need sponsorship for a 186 Direct Entry nomination?
The 186 does not require you to hold SBS, but you must be actively and lawfully operating in Australia. Many employers already hold SBS because they also sponsor 482 workers. See the 186 guide for employers.
Can we pass the $420 fee on to the worker?
No. Sponsorship costs, nomination fees, the Skilling Australians Fund levy and recruitment costs must not be recovered from the worker. Doing so breaches your obligations and can be an offence.
What happens if our sponsorship expires while a worker is still on a 482?
The worker keeps their visa and you still have obligations to them, but you cannot lodge new nominations until a new sponsorship is approved. Apply to renew well before expiry.
Related employer guides
Keep reading on our employer site:
