Finding the right talent in Australia’s competitive job market can be challenging, especially with skill shortages impacting multiple industries. If your business is struggling to secure skilled workers, the Skills in Demand (SID) visa can be a game-changer. This employer-sponsored visa is designed to help Australian businesses bring in skilled employees when local talent is scarce.
So, how does it work? What do employers need to know before sponsoring a worker? Let’s break it down in a straightforward, no-nonsense way.
Why Businesses Sponsor Employees Through the Skills in Demand Visa
If you’re struggling to fill critical roles, sponsoring employees through the Skills in Demand (SID) visa or the Employer Nomination Scheme (ENS 186) might be the solution. Here’s why:
Address Skill Shortages: Many industries in Australia face significant workforce shortages. Sponsoring skilled migrants helps you secure the right talent, ensuring your business keeps moving forward.
Long-Term Workforce Stability: The SID visa (replacing the 482 visa) allows businesses to retain employees for two to four years, reducing turnover and recruitment costs.
Pathway to Permanent Residency: In many cases, sponsored employees can transition to permanent residency (PR) through the 186 Temporary Residence Transition (TRT) visa, leading to long-term workforce retention.
If you’re finding it challenging to source local talent with the required expertise, sponsoring skilled workers might be the smartest investment for your business.
Can My Business Be a Sponsor?
Most legally operating businesses in Australia can become approved sponsors. However, there are some key requirements:
Active and Lawful Operation: Your business must be actively and lawfully operating in Australia. This applies to companies, partnerships, and sole traders.
New Businesses: If your company is newly established, you may need to provide additional documents, such as a business plan, financial forecasts, or proof of contracts, to demonstrate sustainability and operational viability.
No Adverse Information: Your business should have a clean track record with no adverse information related to immigration compliance, workplace laws, or regulatory obligations.
Becoming a sponsor is straightforward if you comply with Immigration regulations. But if you’re unsure, consulting a migration expert can save you from costly mistakes.
Steps to Sponsor an Employee
Sponsoring a skilled worker through the Skills in Demand (SID) visa involves three main steps:
Sponsorship: Your business must apply to become an approved sponsor with the Australian government. This involves demonstrating your business legitimacy, financial standing, and genuine need for overseas workers.
Nomination: You nominate a specific position within your company that needs to be filled by a skilled worker. This step requires you to show that:
The position is genuine and necessary for your business operations.
You have conducted Labor Market Testing (if required) to prove no suitable Australian candidates are available.
The salary offered meets the Australian Market Salary Rate to ensure fair pay.
Visa Application: The skilled worker applies for the visa, providing evidence of their qualifications, relevant work experience, and English language proficiency.
Each stage has specific documentation requirements and compliance obligations. Missing any step can delay the process or lead to refusal.
What Documents Do You Need to Provide?
📌 For Sponsorship
Business Registration Documents: ABN, ACN, or other registration proof.
Financial Records: Profit and loss statements, tax returns, and business activity statements to show your business is financially sound.
Operational Evidence: Contracts, invoices, or other documents demonstrating active business operations.
📌 For Nomination
Proof of Genuine Position: Demonstrate that the role is essential for your business operations and contributes to growth and sustainability.
Labor Market Testing (LMT): Provide evidence that you’ve genuinely tried to hire locally but were unable to find a suitable Australian candidate. This includes job advertisements on relevant platforms for at least 28 days.
Possible Exemptions: In certain cases, Labor Market Testing is not required, such as for intra-company transfers or international trade obligations. These exemptions can be complex, so it’s advisable to consult with a migration expert for clarity.
Market Salary Analysis: Ensure the salary offered meets the Australian Market Salary Rate (AMSR) for that role. This involves providing industry benchmarks, enterprise agreements, or internal salary structures as evidence.
📌 For Visa Application
Employee’s Qualifications and Work Experience: Proof that the applicant is qualified and experienced for the nominated role.
English Language Proficiency: IELTS, PTE, or other approved test results showing the applicant meets the English requirements.
Health and Character Checks: Medical exams and police clearance certificates as per Australian visa requirements.
Every case is unique, and requirements may vary depending on the occupation, industry, and applicant’s background. Consulting with an expert can ensure you get it right the first time.
💰 What Costs Do Employers Cover?
Sponsoring an employee does involve costs, and employers are required to cover certain fees, including:
Sponsorship & Nomination Fees: These are mandatory fees that must be covered by the employer.
Skilling Australians Fund (SAF) Levy: This is a contribution to upskill the local workforce, calculated based on your business size:
Revenue over $10M: $3,600 per year
Revenue under $10M: $1,200 per year
Visa Application Fee: This fee can be negotiated between the employer and the employee, but most businesses choose to cover it to attract top talent.
While these costs may seem high, the long-term benefits of securing highly skilled employees can outweigh the expenses.
🔄 482 Visa vs. 186 Visa – What’s the Difference?
If you’re considering sponsorship, it’s crucial to understand the pathways to permanent residency (PR).
🟠 482 (SID) to 186 TRT (Temporary Residence Transition)
Common PR Pathway: Sponsored employees can transition to PR after working for the same employer for two to three years.
Continuity Requirement: The business must maintain its sponsorship obligations throughout the employment period.
Work Experience Eligibility: The employee must have at least one year of relevant work experience to qualify for the 482 visa.
🔵 186 Direct Entry (DE)
Direct PR Application: Employees can apply for PR without working for the employer beforehand.
Highly Skilled Workers: Ideal for applicants with at least three years of skilled full-time work experience in their nominated occupation.
Faster Pathway: As it bypasses the temporary visa stage, the 186 DE is suitable for high-demand, experienced professionals.
Need Help Navigating the Process?
Sponsoring a skilled worker is a strategic investment, but it requires precise compliance with immigration laws. At Skylark Migration, we help businesses like yours navigate the sponsorship process smoothly and successfully.
Why Choose Skylark Migration?
Tailored Strategies: Every business is unique, and we customise our approach to suit your specific needs.
Proven Expertise: With over 80 years of combined experience and insights from a former Immigration officer, we know what it takes to succeed.
End-to-End Support: From sponsorship approval to PR pathways, we guide you every step of the way.
Our free employer sponsored consultation will ensure you're on the right path for your visa journey!
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