Top 5 Mistakes Employers Make During the Sponsorship Process
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Many business owners assume sponsorship is only for large companies, corporations, or businesses with dedicated HR teams. In reality, that is not how the Australian sponsorship system works.
The short answer is yes, most businesses can sponsor a worker, as long as they meet a few key requirements.
Let’s break this down in simple terms.
Any legitimate and actively operating Australian business can apply to sponsor a worker, regardless of size.
What matters most is whether your business is lawfully operating as a going concern, and whether the context of your business activities align with the skill-set of the person you wish to sponsor.
When assessing whether a business can sponsor a worker, the Department of Home Affairs focuses on a few core questions:
First, is the business real and operating in Australia?
Your business must be legally registered, actively trading, and financially viable. This applies to sole traders, small businesses, partnerships, and companies alike.
Second, does the business genuinely need this role?
Immigration wants to see that the position is real, necessary, and aligned with your business activities. The role must also match an occupation that is eligible for sponsorship.
Third, can the business pay the correct salary?
Sponsored workers must be paid at or above the required salary threshold and in line with market rates. This shows the role is genuine and not created just for visa purposes.
Finally, is the business willing to meet sponsorship obligations?
Sponsorship comes with ongoing responsibilities, such as record keeping, reporting changes, and paying workers correctly.
If you can meet these points, the size of your business is usually not the issue.
Many employers rule themselves out before even asking for advice. Here are some of the most common misconceptions. “I’m too small to sponsor someone.” In reality, many successful sponsorships come from cafés, restaurants, construction companies, aged care providers, clinics, and small professional firms.
“I’ve only been operating for a short time.” Newer businesses can still sponsor workers, as long as they can show genuine operations and financial capacity.
“I don’t have an HR department.” You do not need one. Many small businesses work with migration professionals to manage the process correctly.
We often work with businesses that never expected to be eligible.
For example, a small construction company in Western Australia with fewer than ten staff struggled to find qualified carpenters locally. They assumed sponsorship was not an option because of their size. After a proper assessment, they successfully became an approved sponsor and filled their vacancy through sponsorship. The key was not company size, but preparation and compliance.
When a business may not be suitable
While many businesses are eligible, sponsorship is not right for everyone. You may face challenges if your business is not actively trading, cannot meet salary requirements, or cannot demonstrate a genuine need for the role. In these cases, it may be better to wait or explore other workforce solutions first. This is why early advice is so important.
Employer sponsorship is often more accessible than business owners expect. If your business is genuine, operating, and struggling to find local staff, sponsorship may be a practical and long-term solution. The most important step is not guessing, but getting the right information before you start.
Need help selecting the right stream for your business?
Seven Corp can assess your role and guide you step by step.
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