The Three Stages of Employer Sponsorship, Explained Simply

For a business approaching sponsorship for the first time, the process can look complicated from the outside. Multiple applications, different requirements, two separate parties being assessed.

In practice, it follows a clear structure. There are three stages, each with a specific purpose, and they run in sequence.

Stage one: becoming an approved sponsor

Before a business can nominate anyone, it must first be approved as a Standard Business Sponsor by the Department of Home Affairs.

This stage is about the business itself, not the worker. The Department is assessing whether the business is genuine, lawfully operating, financially stable, and has a clean compliance record.

For most businesses that are legitimately operating and have no significant compliance history, this stage is the most straightforward of the three.

Stage two: nominating the position

Once the business is an approved sponsor, it nominates the specific role it wants to fill. This is the most technically demanding stage of the process.

Nominating a position requires selecting the correct occupation code, preparing an accurate job description, establishing that the salary meets both the migration threshold and the market rate, and completing Labour Market Testing, the formal requirement to demonstrate that genuine efforts were made to find a suitable Australian worker first.

This is where the majority of problems arise in sponsorship applications. Occupation mismatches, salary issues, and Labour Market Testing errors at this stage are the most common causes of delays and refusals. Getting the nomination right requires preparation, not speed.

Stage three: the visa application

After the nomination is approved, the worker applies for their visa. This stage is assessed separately and focuses on the individual: their skills, qualifications, work experience, and English language ability.

The employer's role at this stage is largely to support the process rather than lead it. The worker and their migration agent handle the visa application itself.

How long does the process take?

The three stages run in sequence, which means each must be completed before the next begins. A well-prepared application without complications typically moves through the full process in several months. Delays most commonly result from issues at the nomination stage: occupation mismatches, insufficient Labour Market Testing, or missing documents.

Frequently asked questions

Can the stages run concurrently to save time?

The stages must run in sequence, the sponsorship approval must be granted before the nomination is lodged, and the nomination must be approved before the visa application is made. However, preparation for each stage can begin before the previous one is finalised.

Can I lodge the nomination myself without a migration agent?

It is not legally required to use a migration agent. However, given the complexity of the nomination stage and the consequences of errors, most businesses work with a registered professional, particularly for a first sponsorship.

Book a consultation with Seven Corp to understand what each stage involves for your specific business and proposed role.