Becoming a standard business sponsor can be a significant benefit to an Australian business. It means that during the recruitment process, if the most appropriate candidate is not an Australian citizen or permanent resident and would provide the business with the skills required to assist with growth and development then the company can nominate the employee for a Temporary Skill Shortage (TSS)(subclass 482) visa or a Skilled Employer Sponsored Regional (SESR) (Provisional) (subclass 494) visa.

Becoming a standard business sponsor entitles a business to sponsor overseas employees for five years on subclass 482 and subclass 494 visas. During the five years that a company is registered as a standard business sponsor, the business must ensure that it abides by the sponsorship obligations set out by the Australian Department of Home Affairs (DHA).

What Obligations are Standard Business Sponsors required to meet?

1. Inform the DHA when there are changes in the business

A standard business sponsor must advise the DHA when there are changes to the following for a sponsor:

• Legal name;
• Trading name;
• Registration details;
• Business structure;
• Ongoing communication contact;
• Owners, directors, principals or partners; and
• Business address.

The standard business sponsor must also advise the DHA in the following circumstances:

• If the business becomes insolvent or is bankrupt;
• If the business goes into receivership, liquidation or administration; or
• If the business ceases to exist as a legal entity.

2. Inform the DHA when there are changes to a sponsored employees work arrangements

A standard business sponsor must advise the DHA in writing if the employee being sponsored:

• Ceases employment;
• Has a change in duties; or
• Did not commence working with the business.

3. A standard business sponsor must ensure that the overseas employee works only in the nominated occupation stated in the nomination approval notice.

If the business would like a visa holder to work in a different occupation, then the sponsor will need to lodge a new nomination.

If the employee is being sponsored under the TSS subclass 482 or the Skilled SESR visa subclass 494, the employee will also need to apply for and be granted a new visa.

4. A standard business sponsor must keep records of the sponsored workers’ employment with the business.

A standard business sponsor must keep records to show compliance with the organisation’s sponsorship obligations. All records must be kept in a reproducible format. The sponsor must keep records of:

• The written contract of employment the sponsor engages each sponsored employee under;
• Record of annual/personal/sick/parental leave taken by the employee;
• Record of a change in salary of the sponsored employee;
• Written requests for payment of travel costs for the employee or their family, including when the request was received, how, how much and to whom the travel costs were paid;
• Tasks performed by the sponsored employee in relation to the nominated occupation and where the tasks were performed;
• Earnings paid to the sponsored employee; and
• Non-monetary benefits provided to the employee, such as training and professional development provided to the sponsored employee.

5. A standard business sponsor is required to pay the travel costs of a sponsored worker if requested in writing.

A standard business sponsor must pay ‘reasonable and necessary’ travel costs to let the sponsored employee and their sponsored family members, leave Australia.

The DHA considers all of the following costs to be reasonable and necessary:

• Travel from the employee’s usual place of residence in Australia to their departure point from Australia;
• Travel from Australia to the country for which the employee holds a passport and intends to travel to; and
• Economy class air travel or reasonable equivalent.

To pay travel costs, a written request for payment must be made by:

• The sponsored employee; or
• The DHA on behalf of the sponsored employee

Travel costs must be paid within 30 days of receiving the request.

Staying compliant

Having the ability to be able to sponsor overseas employees enables Australian and overseas business sponsors to have access to a much wider pool of candidates to be able to employ the candidate with the skills and experience needed to grow the business.

Being aware and complying with the standard business sponsorship obligations from the time the business begins sponsoring overseas employees under the TSS subclass 482 or SESR subclass 494 visa program is essential to protecting the business from compliance breaches. Ensuring compliance with the above-mentioned sponsorship obligations explained above is essential to ensure that a business does not put itself at risk of being liable for significant penalties and the cancellation of their sponsorship status.

For advice regarding Australian visas and sponsoring skilled overseas workers, please do not hesitate to contact us at info@hartmanimmigration.com.au for Australian immigration assistance.