As an employer, hiring the right people for your business is essential. However, domestic workers may not always have relevant skill sets. As a result, you may have to hire skilled overseas workers under the temporary shortage visa (subclass 482) (TSS visa).
To do this, you must apply to become a standard business sponsor (SBS). However, you also have the option of becoming an accredited sponsor. This has many advantages for your business, including that:
- it is more compatible with an ongoing need to hire foreign workers;
- you will receive priority processing for all TSS nominations and visa applications; and
- you are subject to lower requirements than if you were only an SBS.
This article will consider the key eligibility requirements for sponsorship accreditation so that you can make an informed decision for your business.
What Are the Benefits of Sponsorship Accreditation?
Under the TSS visa, you can sponsor a skilled overseas worker to fill a position at your business if you cannot find an alternative Australian worker. However, the Department of Home Affairs will prioritise applications from accredited sponsors. This means that your applications will be:
- auto-approved; or
- processed in less than five days.
As an accredited sponsor, you also receive other benefits. For example:
- you will experience relaxed labour market testing requirements, such as being allowed to use your business’ website to advertise the role; and
- applicants whom you sponsor do not need to provide police certificates if you can attest to their good character.
These benefits will significantly reduce the processing time of your applications.
How to Become an Accredited Sponsor
To be eligible to become an accredited sponsor, you must:
- be an approved SBS; or
- demonstrate that you meet the requirements of an SBS.
There are two key requirements to becoming an SBS:
- you must have a lawfully and currently operating business; and
- there must not be any adverse information known about your business.
1. You Must Have a Lawfully and Currently Operating Business
To demonstrate this requirement, you will need to provide documents, including your:
- Australian Business Number (ABN) registration certificate;
- Australian Securities and Investments Commission (ASIC) company extract;
- audited balance sheet;
- profit and loss statement; and
- business tax return.
You can also provide documents that are specific to your kind of business.
Additionally, you may need to provide additional documentation depending on your business structure. If your business is a startup and you have been trading for less than 12 months, you will need to demonstrate your financial viability.
If you are an overseas business, you must prove that you are bringing the visa applicant to Australia to:
- establish a business operation (e.g. to set up an Australian branch); or
- fulfil contractual obligations.
2. There Must Not Be Any Adverse Information Known About Your Business
If the Department of Home Affairs is aware of any adverse information about you or any of your associates, you may be refused from becoming an SBS.
Examples of adverse information could include if your business has:
- contravened any national or state law;
- any pending investigations or disciplinary actions;
- become insolvent; or
- previously provided false or misleading information to the Department of Home Affairs.
If you are aware of any adverse information, you must disclose this in your application. A case officer may then decide to disregard the adverse information.
If this applies to your business, you should seek professional legal advice when filling out your application.
Further Requirements for Australian Businesses
If your business is based in Australia, you must also declare that you have a commitment to employing local labour and that you will not engage in any discriminatory recruitment procedures.
Sponsoring overseas workers as an Australian business is complicated. Let us simplify it for you with this free employer guide.
Ensure You Meet the Characteristics for One of the Five Categories
In addition to the SBS requirements, you can only become an accredited sponsor if you meet one of the categories below.
However, if you are a startup business and do not fit into any of these categories, the Department of Home Affairs may approve your application in special circumstances. This includes if you are part of a government entrepreneurship program.
Category 1: Commonwealth, State and Territory Government Agencies
To meet the requirements of this category, you should:
- be a Commonwealth, state, or territory government entity; and
- have a workforce in Australia, of which at least 75% are Australian workers.
Category 2: Australian Trusted Traders
To meet the requirements of this category, you should be an Australian Trusted Trader and have:
- a workforce in Australia, of which at least 75% are Australian workers;
- a written employment contract for all TSS visa holders that meets the national employment standards (NES); and
- paid all your Australian employees according to an enterprise agreement or internal salary table that reflects current market salary rates.
Category 3: Low Risk Sponsor with Low Volume Usage and High Percentage of Australian Workers
This category is for the SBSs which the Department of Home Affairs considers to be low-volume users of the TSS program. The primary intention of this category is to reward low-risk sponsors that have good records of compliance. To meet these requirements, you must have been an SBS for at least a year, and should have:
- a workforce in Australia of which at least 85% are Australian workers;
- had at least one nomination, and 97% of your total nominations, for a TSS visa holder approved in the last year;
- a business structure other than sole trader or partnership;
- an annual turnover of at least AUD $4 million for the last two years;
- complied with all of your sponsor obligations;
- no adverse monitoring outcomes unless they are reasonable to disregard;
- paid all Australian employees according to an enterprise agreement or an internal salary table that reflects current market salary rates; and
- a written employment contract for all TSS visa holders that meets the NES.
Category 4: Low Risk Sponsor with High Volume Usage and Medium Percentage of Australian Workers
This category is for the high-volume SBSs which the Department of Home Affairs considers to be of lower risk. To meet the requirements of this category, you must have been an SBS for at least two years and should have:
- a workforce in Australia made up of at least 75% of Australian workers;
- had at least 10 nominations, and 97% of your total nominations, for TSS visa holders approved in the last two years;
- a business structure other than sole trader or partnership;
- an annual turnover of at least AUD $4 million for the last two years;
- complied with all of your sponsor obligations;
- no adverse monitoring outcomes unless they are reasonable to disregard;
- paid all Australian employees according to an enterprise agreement or an internal salary table that reflects current market salary rates; and
- a written employment contract for all TSS visa holders that meet the NES.
Category 5: Major Investment in Australia
This applies to SBSs who have significantly invested in Australia and have therefore created jobs for Australians. To fall in this category, you must have been an SBS for one year and should have:
- made a major investment in Australia (at least AUD $50 million), which has directly generated Australian employment;
- a business structure other than sole trader or partnership;
- at least one nomination, and 97% of your total nominations, for a primary TSS visa holder approved in the last two years;
- no adverse monitoring outcomes;
- paid all Australian employees according to an enterprise agreement or an internal salary table that reflects the current market salary rates; and
- a written employment contract for all TSS visa holders that meets the NES (where applicable).
Whether your investment can be considered ‘major’ is dependent on a number of factors, including the:
- value of your investment;
- number of jobs created;
- export outcomes generated; and
- tax contribution of your investment.
Additionally, the category of your investment may depend on the activities you undertook with it, such as whether you set up research activities.
Sponsorship Obligations
It is also important to be aware that, as a business sponsor, you have a set of obligations which you must comply with. These obligations are aimed to protect overseas workers from exploitation and to ensure that the visa program is used correctly. They include, but are not limited to:
- informing the Department of Home Affairs in writing when certain events occur (e.g. changes to your business structure);
- ensuring your employee works only in the nominated occupation;
- not engaging in discriminatory recruiting practices;
- keeping records to demonstrate your compliance with your sponsorship obligations; and
- paying and assuming all costs associated with applying for sponsorship or nominations (e.g. migration agent costs).
Key Takeaways
If you are a large employer with an ongoing need to hire overseas workers, you may wish to apply to become an accredited sponsor under the TSS visa. The main advantage of being an accredited sponsor is that you will receive priority processing for all TSS nominations and visa applications, reducing the processing time from months to days. To be eligible, you must:
- be an approved SBS or meet the SBS requirements; and
- meet the characteristics for one of the five categories defined by the Department of Home Affairs.
If you have any questions about becoming an accredited sponsor, our experienced immigration lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.
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