Sponsorship Visa Costs: What Australian Employers Should Expect

If you’re looking to hire skilled talent from overseas, employer sponsorship can be a smart way to fill hard-to-recruit roles and scale your business in Australia. It can also feel complex the first time you do it - especially when you’re trying to understand the real sponsorship visa costs and who pays for what.

In this guide, we’ll break down the typical costs for key employer-sponsored visas (including which charges are one-off versus ongoing), explain your legal obligations as a sponsoring employer, and share practical tips to budget and stay compliant. We’ll keep the process simple and focus on what you need to know to plan confidently.

Important note up front: Sprintlaw is a commercial and employment law firm. We don’t provide migration agent services. For migration-specific advice (including visa eligibility and strategy), it’s wise to speak with a registered migration agent or check the Department of Home Affairs for current requirements. We can help you with the employment contracts, workplace policies and compliance frameworks that sit around a sponsorship arrangement.

What Is An Employer-Sponsored Visa And How Does It Work?

An employer-sponsored visa allows an Australian business to nominate an overseas worker for a genuine, skilled role when you can’t fill the position locally. The most common pathways are:

• Temporary Skill Shortage (TSS) Visa (Subclass 482): A temporary visa (up to 2 or 4 years, depending on occupation stream) where you sponsor a skilled worker to fill an approved position.
• Employer Nomination Scheme (ENS) (Subclass 186): A permanent residence pathway for skilled workers you nominate in an eligible occupation. This includes streams such as Temporary Residence Transition and Direct Entry (conditions apply).
• Skilled Employer Sponsored Regional (Provisional) (Subclass 494): A regional pathway for skilled roles located in designated regional areas, with a route to permanency after a qualifying period (subject to criteria).

The old Regional Sponsored Migration Scheme (RSMS) (Subclass 187) has effectively been closed to new applicants. Today, most regional employer sponsorships are via the 494 or, in some cases, 186 depending on the business and role.

For a 482 sponsor, there are three main steps: become an approved sponsor (Standard Business Sponsorship), nominate the position, and the worker applies for the visa. For a 186 nomination, you generally do not need to hold a Standard Business Sponsorship approval, but you must meet the specific nomination requirements for that visa. Each step has its own criteria, forms and fees.

How Much Does It Cost To Sponsor A Visa In Australia?

There isn’t a single number that applies to every business because the total cost depends on the visa subclass, the length of sponsorship, your annual turnover and whether you choose to cover optional costs (like legal or relocation support). Below are the core components to budget for.

Core Government Application Fees

These fees are paid to the Department of Home Affairs and related bodies. Amounts can change over time, so always check current charges before you lodge.

• Standard Business Sponsorship (SBS): $420 (once, valid for 5 years) - applies to employers sponsoring under the 482/494 programs.
• Nomination fee (Subclass 482): $330 per nomination.
• Nomination fee (Subclass 186): $540 per nomination.

If you plan to sponsor multiple employees, nomination fees apply to each role.

Skilling Australians Fund (SAF) Levy

The SAF levy is often the largest single sponsorship cost for employers. It’s designed to support training for Australian workers and must be paid by the employer at the time of nomination. You cannot pass this levy to the employee.

• For TSS 482 and SESR 494 visas: The SAF levy is payable per year of the proposed visa period. As a guide, businesses with turnover under $10 million generally pay $1,200 per nominee per year, and businesses with turnover of $10 million or more pay $1,800 per nominee per year. For example, a 4‑year 482 nomination for a business under $10 million turnover would be $4,800 (paid upfront at nomination).
• For ENS 186 visas: The SAF levy is a one‑off payment - typically $3,000 for businesses under $10 million turnover and $5,000 for businesses at or above $10 million turnover (paid at nomination).

Visa Application Charges (Usually Paid By The Employee)

Visa application charges (VAC) are typically paid by the visa applicant (your prospective employee). Some employers choose to cover the VAC as part of a competitive offer, but you’re not required to. Indicative base charges (single applicant) include:

• TSS (482): commonly ranges from about $1,455 to $3,035 depending on the stream.
• ENS (186): around $4,640 for the main applicant.

Additional fees may apply for dependants and subsequent applicants.

Other Costs You May Need To Budget For

• Labour Market Testing (LMT): For many 482 roles, you must advertise locally in prescribed ways and for set periods. The out‑of‑pocket advertising cost varies depending on channels used.
• Migration agent or legal advice (optional): Many businesses engage a registered migration agent to manage visa lodgements. If you do, factor in their professional fees. Sprintlaw can help with the related employment and compliance documents that sit around sponsorship.
• Health and character checks (employee): Medical examinations and police checks are generally paid by the applicant. Some employers choose to reimburse these.
• Relocation and settlement: Optional costs such as flights, temporary accommodation or shipping personal effects can help your employee settle quickly.
• Payroll and onboarding: Plan for standard employment setup costs - drafting an Employment Contract, updating your Workplace Policies and ensuring payroll and superannuation systems are ready.

At-A-Glance: Typical Sponsorship Cost Components (Employer View)

Cost Item	Typical Amount	Who Usually Pays?
Standard Business Sponsorship (SBS)	$420 (valid 5 years)	Employer
Nomination Fee (482/186)	$330–$540 per nomination	Employer
SAF Levy (482/494)	$1,200 or $1,800 per year of requested period	Employer
SAF Levy (186)	$3,000 or $5,000 (one‑off)	Employer
Visa Application Charge	Approx. $1,455–$4,640+ (main applicant)	Employee (some employers cover)
Labour Market Testing	Variable advertising spend	Employer (if required)
Professional Support	Variable (scope‑dependent)	Employer (optional)
Relocation & Settlement	Variable	Employer (optional)

When you add it all up, the cost of sponsoring one employee can range from a few thousand dollars (shorter TSS arrangements) to $10,000+ when you include SAF, advertising, professional support and optional relocation. The key is to plan each component so there are no surprises.

What Are My Legal Steps And Compliance Obligations As A Sponsor?

Sponsorship is more than fees and forms - there are ongoing obligations that attach to employers. Here’s a practical overview of what to expect.

1) Become An Approved Sponsor (For 482/494)

To use the 482/494 programs, you must first obtain Standard Business Sponsorship (SBS) approval. You’ll need to show you’re lawfully and actively operating, and that you have a genuine need for the nominated role. The old “training benchmark” requirements no longer apply - the SAF levy replaced them.

2) Nominate The Position

You must nominate an occupation on the relevant skilled list, demonstrate it’s a genuine, full‑time role, and show the proposed remuneration meets both the market salary rate and the applicable minimum (including any Temporary Skilled Migration Income Threshold where relevant). Many 482 nominations also require labour market testing.

For 186 nominations, you don’t need SBS approval, but you must meet the nomination criteria for the chosen stream (for example, requirements around skills, qualifications, and the business’ capacity to employ the person in the nominated role on a permanent basis).

3) Support The Visa Application

Your nominee will submit their visa application with evidence of skills, experience, English proficiency, and health and character checks. You’ll often provide supporting documents about the business and role.

4) Meet Ongoing Sponsorship Obligations

Once your sponsored worker starts, you must continue to meet your obligations, which include:

• Paying the market salary rate and complying with Australian workplace laws.
• Not recovering or transferring sponsorship or nomination costs to the employee, and not making deductions that would undermine minimum pay conditions.
• Keeping accurate records, and notifying Home Affairs of certain changes (for example, if the role ends).
• Maintaining compliant employment documentation, including a clear Employment Contract and fit‑for‑purpose Workplace Policies.

Non‑compliance can result in penalties or loss of sponsor approval, so it’s worth investing in robust HR and legal processes from day one.

Who Pays For Sponsorship Costs - And Can I Recover Them?

This is one of the most common questions we hear from small businesses. In short, certain costs are strictly the employer’s responsibility and must not be passed on to the visa holder, while others are negotiable.

• Must be paid by the employer: nomination fees and the SAF levy. You cannot seek to recover these from the employee directly or indirectly, and you shouldn’t deduct them from wages.
• Typically paid by the employee: the visa application charge and personal checks (medical, police). Some employers choose to reimburse or cover these as part of a competitive offer - that’s a commercial decision, not a legal requirement.
• Negotiable items: relocation assistance, temporary accommodation, and professional fees for migration advice if you wish to offer it as part of a package.

Any cost‑sharing arrangement must still comply with Australian workplace laws and minimum standards. Clear, written terms in the Employment Contract help prevent misunderstandings about who is paying for what.

How To Budget And Make The Process Smoother

Sponsorship can be straightforward with a clear plan. Here’s how to keep your budget (and timelines) under control.

• Map your costs early: Add up SBS (if required), nomination fees, SAF levy, potential LMT advertising, and whether you’ll cover any visa or relocation costs. This lets you approve a realistic total package before you advertise.
• Choose the right pathway: If your role is regional, the SESR 494 might be more appropriate than a 482. If you’re looking at permanency from the outset, consider the ENS 186 streams, noting the different cost profile (one‑off SAF) and eligibility criteria.
• Tighten your documentation: Make sure your offer and Employment Contract reflect the role, location, remuneration and any sponsorship‑related terms. Well‑drafted documents reduce back‑and‑forth at nomination and onboarding.
• Get your HR house in order: Keep policies current, including anti‑discrimination, leave, performance management and complaints. A coherent policy suite supports fair processes and reduces risk. If you need a single source of truth, update or implement a Workplace Policy set before the employee starts.
• Protect personal information: You’ll collect personal data during recruitment and onboarding. Have a compliant Privacy Policy and secure data handling practices in place.
• Plan for structure and growth: If you’re expanding quickly, consider whether operating through a company structure is right for you now or in the near term. If it is, a streamlined Company Set Up can support hiring, payroll and future investment.
• Prepare for the full employee lifecycle: Sponsorships change over time. If employment ends early, ensure you follow lawful processes and have the right documents - for example, an Employee Termination Documents Suite helps you manage exits fairly and compliantly.

Essential Legal Documents For Sponsored Employees

Even though migration paperwork sits outside standard employment law, the employment relationship is the same: you need strong, clear documents that set expectations and keep you compliant.

• Employment Contract: Confirms the role, duties, location, hours, remuneration (including superannuation and any allowances), confidentiality and IP, visa‑related conditions, and termination processes. A tailored Employment Contract reduces disputes and supports Fair Work compliance.
• Workplace Policies: A practical policy set covering code of conduct, leave, performance, discrimination and harassment, WHS, and complaints handling. A current Workplace Policy suite guides day‑to‑day conduct and supports consistent decision‑making.
• Privacy Policy: If you collect personal information about staff or applicants (which you will), a compliant Privacy Policy explains how you collect, use, store and disclose that data.
• Confidentiality and IP Protection: These clauses are usually embedded in the employment agreement but can be supported by separate confidentiality undertakings if your team includes contractors.
• Performance and Termination Tools: Clear processes and templates (warnings, performance plans, termination letters) help you manage issues lawfully and consistently, such as those included in an Employee Termination Documents Suite.

You may not need every document listed above in every situation, but most employers will need several of them in place before a sponsored employee starts.

Key Takeaways

• Sponsorship visa costs vary by visa type and length. Expect nomination fees, the SAF levy, and - for 482/494 - the levy paid per year upfront; for 186, the SAF is a one‑off.
• Employers must pay the SAF levy and cannot pass it or other sponsorship/nomination costs on to the visa holder.
• For 482/494, you need Standard Business Sponsorship; for 186, SBS is not required but strict nomination criteria still apply.
• Strong employment documentation matters: use a tailored Employment Contract, up‑to‑date Workplace Policies and a compliant Privacy Policy.
• Map your full cost profile early - including LMT advertising, professional support and any relocation - so there are no surprises when you lodge.
• Migration strategy is best handled by a registered migration agent; Sprintlaw can help with the employment and compliance framework around your sponsorship.

If you’d like a consultation on the employment and compliance side of sponsoring staff in Australia, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no‑obligations chat.