Work visas and sponsoring talent in Australia
Reviewed by Mellow Editorial Team, HR & payroll content team
Sponsoring an overseas worker in Australia means taking on legal obligations as well as gaining access to a broader talent pool. This article explains the main visa pathways, what sponsorship actually requires of you as an employer, and where the compliance pressure points sit.
The main employer-sponsored visa pathways
Most skilled workers come in through one of two streams.
Temporary Skill Shortage (TSS) visa — subclass 482. This is the primary temporary pathway. It lets you sponsor workers in occupations listed on either the Short-term Skilled Occupation List (STSOL) or the Medium and Long-term Strategic Skills List (MLTSSL). Short-term stream visas are generally granted for up to two years; medium-term stream visas for up to four years, with a path to permanent residence for some occupations. The worker must meet relevant skills and English language requirements, and you must demonstrate the role genuinely exists and that you have tried to fill it locally first.
Employer Nomination Scheme (ENS) — subclass 186. This is the permanent pathway. It has three streams: the Temporary Residence Transition stream (for workers already on a 482 with you for the required period), the Direct Entry stream (for workers coming straight to permanent residence), and the Labour Agreement stream. ENS gives the worker a pathway to Australian permanent residence, which often makes it more attractive for long-term hires.
Labour agreements. For occupations that fall outside the standard lists, a labour agreement negotiated directly with the Department of Home Affairs may be an option. These are bespoke arrangements and take significantly longer to establish.
Becoming an approved sponsor
Before you can nominate anyone, your business must be an approved standard business sponsor. The application is lodged with the Department of Home Affairs and requires evidence that your business is actively and lawfully operating in Australia.
Approval is not permanent. You must continue to meet your sponsorship obligations for the duration, and Home Affairs can suspend or cancel your sponsorship if you do not. Approvals are also not visa-specific — once approved, you can nominate multiple workers, subject to each nomination being assessed individually.
What sponsorship actually obligates you to do
This is where many employers underestimate the commitment. Sponsorship obligations include:
- Pay equivalence. You must pay a sponsored worker at least the market salary rate for the role, and no less than the equivalent Australian worker in the same position. You cannot cut costs by paying overseas workers less.
- Keeping records. You must keep records that demonstrate you are meeting your obligations and make them available to Home Affairs inspectors if requested.
- Notifying Home Affairs of changes. If the worker's employment ends, their duties change significantly, or your business structure changes, you are required to notify the Department.
- Not passing on costs. You generally cannot ask the sponsored worker to reimburse you for the cost of sponsorship or nomination, either directly or through salary deduction.
- Travel obligations. In some circumstances, you may be required to pay for the worker's travel out of Australia if their visa ceases and they cannot fund it themselves.
Breaches can result in civil penalties and cancellation of your sponsorship approval.
Payroll and tax obligations for sponsored workers
Once a sponsored worker is on your payroll, the standard obligations apply. You withhold income tax through PAYG, report every pay event through Single Touch Payroll, and finalisations are due by 14 July each year. The Medicare levy at 2% applies to most workers once they hold the appropriate visa status.
Superannuation is owed at the Guarantee rate — 12% of ordinary time earnings from 2026 — unless a bilateral social security agreement between Australia and the worker's home country means contributions should be made there instead. A number of these agreements exist; it is worth checking before you assume the standard arrangement applies.
If a worker has an Australian HECS/HELP debt (less common for newly arrived migrants, but not impossible), repayments are withheld through payroll on the standard banded scale.
For employers running payroll across multiple countries, managing the intersection of home-country tax residency, Australian withholding, and superannuation eligibility adds complexity. How Mellow runs payroll across six countries on one platform covers some of the practical mechanics.
What to watch before you start
A few practical considerations before you go down this path:
Genuine labour market testing. For 482 visas, you must demonstrate you advertised the role to Australian workers first and could not fill it. There are specific requirements around how and where you advertise, and how long the ads must run. Keep all your records from this process.
Occupation list eligibility. The occupation lists are updated periodically. Confirm the role you are hiring for is on the relevant list at the time you lodge the nomination, not just when you start planning.
Processing times. Both sponsorship approval and nomination processing can take months. If you are working to a project deadline, build that lead time in from the start.
Visa conditions. A 482 holder is tied to their sponsor for their approved occupation. If you want to change their role substantially, a new nomination may be required. The worker also cannot simply move to another employer without that employer sponsoring them.
This article is general information only and does not constitute immigration or legal advice. Visa law is complex and changes regularly; consult a registered migration agent or immigration lawyer for advice specific to your circumstances.
---
Run HR and payroll in Australia with Mellow
Mellow brings HR, payroll and 12 AI agents into one platform — built to handle Australia properly, with payroll included, from £4 per employee per month. The AI agents don't just answer questions; they generate contracts, run cost estimates and draft letters for you.
[Start a free trial →](/register)