Sponsorship involves real costs, real time, and real obligations. But for many Australian businesses, particularly those in sectors with persistent skill shortages, it also delivers something that is increasingly hard to find: the right person, in the right role, ready to commit long-term.
Let us break it down properly.
There is no single number that applies to every business, but here is an honest breakdown of what to expect.
Government fees (paid by the employer)
The most significant government cost is the Skilling Australians Fund (SAF) levy. This is paid when the employer lodges the nomination, and the amount depends on:
There is also a visa application fee paid by the worker. Employers are not legally required to cover this, but some choose to as part of their employment offer.
Migration agent fees
Professional fees vary depending on the agent and the complexity of the case.
Time and internal resources
Labour Market Testing, gathering documents, and working through the process takes time, particularly the first time a business goes through it. Once a business has done it once, subsequent applications are generally faster and smoother.
This is the question that most employers forget to ask.
When a role stays unfilled for months, sometimes longer, there is a real financial and operational cost that often goes uncalculated:
Lost revenue and productivity. A vacant position in a revenue-generating role directly affects output. A missing chef means fewer covers. A missing nurse means reduced patient capacity. A missing engineer means delayed projects.
Overloading existing staff. When a team is short one person, the others absorb the extra work. This leads to burnout, increased turnover, and often creates more vacancies down the line.
Delayed growth. Many businesses cannot take on new clients, new contracts, or new locations because they cannot staff them. The cost of that foregone growth is real, even if it does not show up on a balance sheet.
Ongoing recruitment costs. Job ads, time interviewing unsuitable candidates, recruitment agency fees, when a role remains open for six or twelve months, these costs accumulate quickly.
For many businesses, when this full picture is considered, the cost of sponsorship looks quite different.
Not every business is in the same position, and it is worth being specific about where sponsorship delivers the most value.
Healthcare and aged care: There is a well-documented shortage of nurses, care workers, and allied health professionals across Australia. For providers who cannot fill clinical roles locally, sponsorship is often the only reliable path to maintaining adequate staffing.
Construction and trades: Engineers, project managers, and specialised trades are in high demand, particularly in infrastructure and residential construction. Sponsorship allows businesses to bring in specific skills that are genuinely scarce locally.
Hospitality: Head chefs, restaurant managers, and skilled kitchen staff are consistently listed as hard-to-fill roles. For hospitality businesses in regional areas, especially, the local talent pool is limited, and sponsorship fills a genuine gap.
Technology: Software developers, cybersecurity professionals, and data specialists remain in short supply. Tech businesses often find that the cost of sponsorship is far outweighed by the value of the right hire.
Regional businesses: Companies operating outside major cities often face even more acute shortages. Regional visa pathways (like the 494) also offer advantages, including slightly different occupation lists and lower salary pressures in some cases.
Retention: Sponsored workers tend to stay. They have made a significant life decision to work for your business in Australia, they are not typically looking for the next opportunity after six months. This is a genuine advantage over the high-turnover hiring cycles that many businesses struggle with.
Pathway to permanent residency: If a sponsored worker performs well, many employers choose to support their transition to permanent residency through pathways like the 186 visa. This converts a temporary arrangement into a long-term employment relationship, one where the worker has even more reason to invest in their career with your business.
Workforce planning stability. Rather than constantly reacting to vacancies, businesses that use sponsorship can plan further ahead. Knowing that a key role can be filled (even if it takes a few months) changes how you approach growth.
In the spirit of being honest, there are situations where sponsorship does not make sense:
In these cases, it is better to understand the position clearly before investing time and money in the process.
Before deciding whether sponsorship is worth it, ask yourself three questions:
1. How long has this role been unfilled? If the answer is more than three to four months, the cost of the vacancy is already high.
2. What is the impact of not having this person? Revenue, capacity, staff wellbeing, growth. What is actually at stake?
3. Is the role genuinely suitable for sponsorship? Full-time, ongoing, skilled, and at the right salary level?
If your answers point toward a genuine and ongoing need, sponsorship is almost certainly worth the investment, not just as a short-term fix, but as part of a sustainable workforce strategy.
Who pays for sponsorship: the employer or the worker?
The SAF levy and nomination fees are always paid by the employer. Visa application fees are formally the worker's responsibility, though some employers choose to cover them.
Is sponsorship a long-term commitment?
The sponsorship approval itself lasts for several years. The visa duration varies, but most are two to four years with renewal options. Obligations continue while the worker is employed by you.
Can I recover the cost if the worker leaves early?
In some limited circumstances, employers can recoup some costs if a sponsored worker voluntarily leaves very early. A migration professional can advise on the options in your specific situation.
Does sponsorship affect my ability to hire Australians?
No. Sponsoring an overseas worker does not restrict your ability to hire locally. Many businesses run both strategies simultaneously.
Not sure whether sponsorship makes financial sense for your business? Seven Corp offers a free initial consultation to help you assess the numbers, the process, and whether it is the right move. Book your free session today.