The common mistakes that companies make when becoming a sponsor, and how to avoid them

Becoming a business sponsor can be as daunting as it is exciting. The doors are wider open to access qualified professionals from different nationalities, serving various business areas and needs. Mistakes can be made in this process, with Seven Corp having identified the common problems and solutions throughout the process.

Businesses can sponsor overseas workers under the Skills in Demand visa (subclass 482) and  Skilled Employer Sponsored Regional (Provisional) visa (subclass 494). The new Core Skill Occupation List includes 456 occupations to bring skilled international workers. Sponsorship approval may last up to 5 years.

However, the process of becoming a sponsor involves steps, companies may encounter a variety of challenges in the sponsorship process. New or small businesses are more likely to make these issues if they are not guided by an expert.

“By focusing on the big picture, companies (usually smaller ones) prioritise the need to normalise their employees’ visa status, without focusing on how to justify the sponsorship of the position itself for their own needs”, as noted by Aaron Chan, Principal Migration Consultant at Seven Corp.

1. Failing in meeting visa eligibility requirements

Specially small business may find hard to understand the long list or complicate to figure out by themselves all the needed requirement to become a sponsor (Standard Business Sponsor, Accredited Sponsor, and Temporary Activity Sponsor.), and understanding to which visa should the employee be nominated, (subclass 482, 186, or 494) has distinct criteria that need to be met.

How to avoid this mistake: It is not the most enjoyable reading, but it is needed to take time to thoroughly review the eligibility criteria for the sponsorship visa you are applying for. Legality in the country and the necessary documents.

2. Incomplete or incorrect documentation

Errors in documents such as the employee's work history, company financial statements, or even inconsistencies between the employer's nomination and the employee's visa application can lead to sponsorship visa refusals.

How to avoid this mistake: Certify that you review all documents required as a part of a valid process, skill evaluation, if necessary, business financial registration, labour market tests and others.

3. Not fulfilling Australian Labor Market Testing (LMT) or advertising requirements

It is a legal requirement for certain employer-sponsored visas, such as the Skills in Demand visa (subclass 482), to advertise the position you intent to fill and prove that are no suitable local candidate for the role, it is the Labor Market Testing (LMT).

How to avoid this mistake: Adverts must have been active for at least 28 days on at least two approved platforms, and documents from the recruitment process are also required.

4. Not meeting the salary benchmark standards

Offering below-market wages listed in the Temporary Skilled Worker Migration Income Threshold (TSMIT), or providing working conditions less favourable than what is offered in Australia.

How to avoid this mistake: Certify that sponsored employees must earn a salary of at least $73,150 per year (excluding superannuation) for the Core Skills Pathway and $135,000 per year (excluding superannuation) for the Specialist Skills Pathway, or the market wage for their occupation. Note these thresholds will be increased to $76,515 and $141,210 respectively from 1^st July 2025 onwards.

5. Nominating the wrong occupation

Selecting an incorrect occupation in the new Core Skill Occupation List or other relevant occupation structures may lead to delays, refusal or complications with the employee's visa.

How to avoid this mistake:  The qualifications and experience of the candidate should also align with the expectations of the specific occupation, to justify the hiring of that applicant.

6. Not understanding sponsorship obligations

 After the visa approval, sponsors still need to keep a record of employment and notify the Department of Home Affairs of any changes to employment terms, such as salary reductions, role changes; along with when other events occur, such as changes to your business, directors, legal name, trading name, corporate structure, address, etc.

How to avoid this mistake: Set aside time to familiarise yourself with the obligations in progress of sponsorship under the Australian migration law. An immigration expert can be a great support to maintain business updates in their registrations and documents to the government.

7. Not seeking professional advice

Immigration laws and procedures may not be as simple as business would like to be. Trying to go through this process without specialised guidance can make it even more complex, and candidates can ignore some of the key steps or even miss opportunities with new government agreements.

How to avoid this mistake: Seeking formal migration assistance from an agency can provide an objective opinion as to whether it is a feasible endeavour as well as to present their circumstances in the best light possible if you are to proceed.

If an error results in an official refusal from the Department of Home Affairs, there may not be significant leeway to rectify your visa applicant’s circumstances, especially if the three steps - sponsorship, indication and application- were sent at the same time. A refusal of a sponsorship will mean a refusal of a nomination, which in turn will mean a refusal of the visa request itself. The possibility of appeal may be available to onshore candidates in such cases.

If you have any further questions about your obligations as a standard business sponsor, do not hesitate to contact a Seven Corp specialist for a free consultation.

Email: employer@sevencorp.com.au

Phone number: 1300 157 707