If your business holds Standard Business Sponsor (SBS) approval to employ workers on the Skills in Demand (subclass 482) visa, you have taken on a set of legally binding obligations that last well beyond the day you lodge the nomination. Breaching them can result in fines of up to $396,000 per contravention, cancellation of your sponsorship, and your business name published publicly on the ABF website. Here is a plain-English guide to what Australian employers must do — and what they must never do.
What Is a Standard Business Sponsor?
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A Standard Business Sponsor (SBS) is a business approved by the Department of Home Affairs to nominate overseas workers for the subclass 482 Skills in Demand visa. The SID visa replaced the former Temporary Skill Shortage (TSS) visa on 7 December 2024 and operates across three streams: Core Skills, Specialist Skills, and Labour Agreement.
Becoming an approved sponsor is just the beginning. Sponsorship approval carries obligations that are enforceable under section 140H of the Migration Act 1958 (Cth), with the specific duties set out in Regulations 2.78 to 2.87C of the Migration Regulations 1994 (Cth).
The Core Sponsorship Obligations
1. Pay Equivalent Terms and Conditions (Reg 2.79)
This is the most important obligation and the one most commonly breached. You must pay your sponsored worker no less than what you would pay an Australian citizen or permanent resident performing the same role in the same location. This covers salary, leave entitlements, allowances, and all other conditions of employment.
For the Core Skills stream, the minimum salary threshold is the Core Skills Income Threshold (CSIT), currently set at $76,515 per year from 1 July 2025. For the Specialist Skills stream, the minimum is $135,000 per year. These thresholds are indexed annually each 1 July.
Paying the CSIT is the floor, not the ceiling. If the Annual Market Salary Rate for the role exceeds the CSIT, you must pay the higher amount.
2. Ensure the Worker Performs the Nominated Occupation (Reg 2.86)
Your sponsored worker must be employed in the occupation you nominated. If the nature of the role changes materially — different duties, different location, different ANZSCO classification — you may need to lodge a new nomination. This obligation applies for the duration of employment.
3. No On-Hiring to Third Parties (Reg 2.86)
You cannot hire out or on-hire your sponsored worker to another business unless that business is an associated entity of yours. Using 482 sponsorship as a de facto labour-hire arrangement for unrelated businesses is a direct breach. The only exception is for sponsors operating under a bespoke On-Hire Industry Labour Agreement.
4. Do Not Transfer Sponsorship Costs (Reg 2.87 / 2.87A)
This is non-negotiable. You cannot pass on, recover, or require your sponsored worker or their family to pay any of the following:
- Sponsorship application fees
- Nomination application fees
- The Skilling Australians Fund (SAF) levy
- Migration agent or lawyer fees for the sponsorship and nomination
- Recruitment advertising costs
It does not matter whether the worker agrees in writing or signs a contract that includes a repayment clause. Any attempt to recover these costs — by direct charge, wage deduction, or contractual obligation — is a breach regardless of consent.
5. Pay the Worker’s Return Travel Costs If Required (Reg 2.80)
If your sponsored worker asks you to pay for their return travel to their home country after their employment ends, you must pay reasonable travel costs within 30 days of the request — unless the worker has already been granted another visa that allows them to remain in Australia. This obligation exists to ensure employers cannot strand workers here without means to leave.
6. Cooperate With Inspectors (Reg 2.78)
ABF compliance officers can visit your premises without prior notice. You must cooperate fully, grant access to relevant records, and not obstruct an inspection. Failing to cooperate is itself a breach of your sponsor obligations.
7. Keep Records (Reg 2.82)
You must maintain accurate records covering the sponsored worker’s employment tasks, earnings, work location, any travel payment requests and amounts paid, and any notifications made to the Department. Record-keeping obligations can survive the end of employment by up to five years.
8. Notify the Department of Certain Events (Reg 2.84)
Within 28 calendar days, you must notify the Department if any of the following occur:
- The sponsored worker’s employment ceases
- The worker’s duties change materially
- Your business enters insolvency, administration, or is restructured
- You have paid travel costs for the worker
- Any other event prescribed by the regulations
Missing the 28-day window is a technical breach even if the underlying event is routine. Build this into your HR processes.
What Happens If You Breach Your Obligations?
The Australian Border Force administers sponsor compliance and has a range of enforcement tools that escalate in severity.
Infringement Notices
For less serious breaches, the ABF can issue an infringement notice without going to court — up to $15,840 per breach for individuals and up to $79,200 per breach for a body corporate. These can accumulate quickly if multiple obligations are breached simultaneously.
Civil Penalties
For serious or persistent breaches, the matter can be referred to the Federal Court for civil penalty orders. The maximum penalty is $76,200 per contravention for individuals and $396,000 per contravention for corporations. Multiple contraventions in the same incident are each counted separately.
Cancellation and Bars
The Department can cancel your SBS approval and bar your business from applying for sponsorship again for a fixed period. If your approval is cancelled, any pending nominations and visa applications will also be refused, and your existing sponsored workers may be left in a precarious position.
Public Naming
This is the consequence most employers overlook. The Department is required by law to publicly publish the details of any sponsor against whom a sanction has been imposed. Your business name, the breach, and the penalty are listed on the ABF website. For businesses that trade on their reputation, this is often the most damaging outcome.
What Changed With the Skills in Demand Visa in December 2024?
The transition from the TSS visa to the Skills in Demand visa on 7 December 2024 introduced some important changes for sponsors:
- The obligation to ensure a worker remains in their nominated occupation now terminates when employment ends, rather than persisting for the full visa period. This aligns with the new grace period framework that allows workers up to 180 days (extendable to 365 days total) to find a new sponsor after leaving.
- The ATO has introduced quarterly payroll data cross-matching against visa records, meaning salary underpayments are now more likely to be detected without a formal complaint.
- The Core Skills Income Threshold (CSIT) replaced the former Temporary Skilled Migration Income Threshold (TSMIT) as the minimum salary benchmark and is indexed to move each 1 July.
A Note on Migration Agent Fees
When VisaTasker acts for your business as well as the visa applicant in the same matter, we maintain separate client relationships. Fees for preparing and lodging your sponsorship and nomination applications are your costs as the employer — they cannot under any circumstances be passed back to your sponsored employee, even informally. If you are unsure about your obligations or have received a compliance notice from the ABF, contact us early. The earlier you engage, the more options available to you.
Frequently Asked Questions
How long do sponsor obligations last?
Most obligations apply while your sponsored worker is employed by you. Record-keeping obligations continue for two to five years after the employment relationship ends. The obligation to pay return travel costs applies while the worker remains on your sponsorship.
Can I ask the worker to reimburse the SAF levy if they leave early?
No. The SAF levy is a cost that falls solely on the sponsor. Any arrangement — written or verbal — requiring the worker to repay it is a breach of Regulation 2.87A regardless of what their contract says.
What if my business restructures or is acquired?
You must notify the Department within 28 days of any material restructure, change of ownership, or entry into administration. If your business no longer meets the criteria for SBS approval following the restructure, seek advice promptly to avoid being found in breach.
For help planning the business evidence and ongoing responsibilities, see our employer sponsorship services.
If you need help with standard business sponsorship applications, nominations, or compliance matters, VisaTasker can assist. Contact us for a consultation with Awais, a registered migration agent (MARN 2318017).
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Reviewed by VisaTasker Migration Services
MARA Registered Migration Agent · MARN 2318017
This article is written and reviewed by VisaTasker Migration Services, a MARA-registered migration agency based in Australia. As registered agents, we are bound by the Migration Agents Code of Conduct and required to provide accurate, up-to-date advice based on Australian migration legislation. Information is reviewed against the latest Department of Home Affairs policy.
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