Which documents do companies need to share when becoming a sponsor?

This is probably one of the first questions that comes to mind for entrepreneurs when deciding to sponsor a skilled foreign worker.

When applying for sponsorship, the employer must provide evidence that they are operating legally, are financially viable and can sponsor their nominee for the period requested in their application. These elements are supported by company documents provided directly to the government or through an immigration agency.

Ana Letícia Correia-Gnavi, Corporate Services Coordinator and Senior Registered Migration Consultant at Seven Corp explains what documents companies need to provide when applying for sponsorship.

“They will therefore need to provide their business registration and financial evidence. They will also need to provide specific information about the nominee’s role, such as the job description, and whether the nominee’s remuneration package is in line with Australian market salaries,” says Ana Letícia.

The required documents by the Immigration Department differ from the two main steps in the sponsorship process: becoming a Standard Business Sponsor and then referring a qualified professional for a position to be sponsored.

The first stage focuses on aspects of the business, while a nomination targets a specific position with individual and overlapping requirements.

To become a Standard Business Sponsor, the Immigration Department will consider:

Business’ legality

This will often involve multiple checks against the Australian Business Number (ABN) and Business Name Registration Certificate (from ASIC), full names and dates of birth of directors, structure (e.g. whether it is a trust, partnership, company or other) and documents evidencing that structure.

Financial capacity

Whether the Department can prove that the company is a “going concern” as a profitable entity and that certain metrics, specifically gross sales, payroll expenses and net profit, can be demonstrated.

In the case of a net loss, it is still possible to argue for the company’s ability to do business if its net worth is positive. Other documents that may be useful in the process include Income Statements (the company’s revenue – cash inflow, expenses – cash outflow and net profit or loss for a specific period), ATO Returns and Business Activity Statements (BAS).

Evidence of Business Operations

It is not mandatory, but it is very useful, especially for small and new businesses. It refers to the various activities that the business undertakes daily, demonstrating that it is actively operating and can provide context as to the specific occupations required for these activities, as well as business operational documents such as organisational charts, employee records, Property Lease Agreements and so on.

To nominee a skilled worker, the Immigration Department will consider:

What attempts the business has made to source ​the position - specifically, advertising? A summary of these requirements and applicable exemptions can be found via the following link. For most in-demand (SID - Subclass 482) visas and Skilled Employer Sponsored Regional (Subclass 494) visas, the business will also need to provide Labour Market Testing (LMT), by advertising the job in the authorized platform for a minimum of 28 days, and show a genuine attempt to hire locally.

The terms and conditions - specifically, the guaranteed earnings - of the position, and whether this can be viably matched against an existing Australian citizen or permanent resident in the same role; or whether it can otherwise benchmarked against external industry sources such as comparable adverts and remuneration surveys.

The reason for the nomination - Any quantitative and qualitative arguments as to why the nominee has been identified as the best fit to fill a genuine need for the business and its expected contributions for the intended duration of the role.

Mrs Correia-Gnavi remembers that these documents are shared between the employer and government, “they do not need to share any of their registration and financial evidence with their employees. This is confidential and their employees will not have access to it.”

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