Avoiding Costly Errors in Employee Sponsorship
As Australian businesses continue to face critical skill shortages, many employers are turning to overseas professionals to fill essential roles. While sponsoring an employee under the Skills in Demand Visa (Subclass 482) offers a valuable solution, it also involves strict and procedural requirements.
Even minor mistakes during the sponsorship or nomination process can lead to visa refusals, compliance breaches, penalties, or damage to your business reputation. To avoid these risks, avoid these risks, employers should understand the most common pitfalls—and how to prevent them with proper preparation and legal guidance.
- Submitting Incomplete or Incorrect Applications
One of the most common reasons for sponsorship or visa refusal is inaccurate or missing information. Common issues include:
- Outdated or incomplete documents.
- Errors in the employee’s work history or business financials.
- Mismatched information between the nomination and visa applications.
How to Prevent It:
- Double-check that all details in the Sponsorship, Nomination, and Visa Applications are consistent and complete.
- Review all attachments before submission.
- Seek assistance from an immigration lawyer to ensure full compliance with the Department of Home Affairs’ requirements.
- Failing to Meet Labour Market Testing (LMT) Requirements
Before nominating a foreign worker, employers must demonstrate genuine efforts to recruit within Australia. This is known as Labour Market Testing (LMT).
Common Mistakes Include:
- Not advertising the role for the required 28 consecutive days.
- Using non-approved or limited job platforms.
- Failing to retain records or screenshots of job postings.
How to Prevent It:
- Advertise the vacancy on JobActive (the Australian Government platform) and at least two major job boards such as Seek or Indeed.
- Keep copies of advertisements and screenshots as proof.
- Ensure advertisements clearly list job duties, salary, and employer name.
- Offering a Salary Below Legal Thresholds
Salaries offered to sponsored employees must comply with the Temporary Skilled Migration Income Threshold (TSMIT) or the market salary rate—whichever is higher.
As of February 2025, the TSMIT is $73,150 per year (excluding superannuation). The Skill in Demand Visa also includes pathway-specific salary requirements:
- Specialist Skills Pathway: $135,000+ per year excluding super).
- Core Skills Pathway: $73,150+ per year (excluding super).
- Essential Skills Pathway: Salary standards still being finalized.
How to Prevent It:
- Review the latest TSMIT and relevant salary benchmarks.
- Offer pay and benefits equivalent to Australian employees in comparable roles.
- Confirm compliance before lodging your nomination.
- Nominating the Wrong Occupation
Selecting an inappropriate or inaccurate occupation from the Core Skills Occupation List (CSOL) is another major cause of application refusal. Misclassification, even if unintentional, may be considered non-compliance and can result in penalties or loss of sponsorship privileges.
How to Prevent It:
- Carefully review the CSOL and match the nominee’s actual duties to the most accurate occupation code.
- Seek professional advice to verify that the occupation aligns with SID Visa eligibility
- Overlooking Ongoing Sponsorship Obligations
Securing a visa is not the end of the employer’s responsibilities. Sponsors must comply with strict obligations throughout the employee’s period of stay, such as:
- Notifying the Department of any changes in employment (e.g., salary, role, or work location).
- Keeping detailed employment records.
- Ensuring the employee works only in the nominated position.
How to Prevent It:
- Familiarize yourself with your continuing sponsorship obligations under migration law.
- Schedule regular compliance reviews with your immigration lawyer.
Common Mistakes and How to Avoid Them
Mistake | How to Avoid It |
Incomplete or inaccurate documentation | Review all forms and evidence; seek legal guidance. |
Labour Market Testing errors | Follow advertising requirements; keep proof of postings. |
Below-market or non-compliant salary | Check TSMIT and pathway-specific salary rules. |
Incorrect occupation nomination | Match role duties with CSOL and SID Visa requirements. |
Ignoring sponsorship duties | Stay informed and conduct regular compliance checks. |
Not consulting a migration professional | Engage a qualified immigration lawyer early. |
Frequently Asked Questions (FAQs)
- How long does the sponsorship process take?
Processing for the Skills in Demand Visa (Subclass 482) typically ranges from 1 to 3 months, depending on the chosen pathway, occupation, and the accuracy of the application.
- Can my sponsored employee start work before the visa is approved?
No. The employee must hold a valid visa before starting employment. Hiring without authorization can result in significant penalties.
- What is the Temporary Skilled Migration Income Threshold (TSMIT)?
The TSMIT sets the minimum annual salary for sponsored workers—currently $73,150 (excluding super). Employers must pay the higher of this threshold or the market salary rate.
- What if the employee’s visa is refused?
You can:
- Review the refusal notice to identify issues.
- Lodge an appeal with the Administrative Appeals Tribunal (AAT) (if eligible).
- Reassess and reapply with corrected documentation.
- Can small businesses sponsor employees?
Yes, provided they can demonstrate financial capacity, genuine need, and compliance with all sponsorship obligations, including contributions to the Skilling Australians Fund (SAF).
Sponsoring an overseas employee can significantly strengthen your workforce and address key skill shortages. However, it’s crucial to approach the process with precision, compliance, and professional support.
By understanding and avoiding common mistakes—and working closely with experienced immigration lawyers—you can secure talent for your business confidently and lawfully.
Note: The Skills in Demand Visa (Subclass 482) replaced the Temporary Skill Shortage (TSS) Visa in December 2024. Applications lodged under the TSS program may still be assessed under previous regulations. For the latest updates, visit the Department of Home Affairs website, https://www.homeaffairs.gov.au/.
