What is Accredited Sponsorship?
Becoming an approved sponsor is a prerequisite to nominating overseas workers to work for you on a Temporary Skill Shortage (TSS) (subclass 482) or Skilled Employer Sponsored Regional (SESR) (subclass 494) visa.
In order to become an approved sponsor, an application for approval as a Standard Business Sponsor (SBS) must be made.
Certain businesses may be able to apply for accredited status, which allows them to receive priority processing for all TSS and SESR nomination and visa applications. Accredited sponsorship is designed to ensure lower-risk sponsors can access to priority allocation and streamlined processing for their overseas workers. Applications lodged by Accredited Sponsors receive preferential treatment.
Standard Business Sponsors and Accredited Sponsors are subject to the same sponsorship obligations. Accredited sponsorship is a particularly attractive option for companies now more than ever as the Department of Home Affairs reports a backlog of almost one million visa applications and industries across Australia to experience significant workforce shortages.
What are the benefits of accredited status?
- Priority processing for all applications
All TSS, SESR nomination and visa applications submitted by Accredited Sponsors are awarded priority processing status. That is, they receive faster processing times for applications that are significantly shorter than the processing times for Standard Business Sponsorships.
A ministerial direction enacts this under section 499 of the Migration Act. - Streamlined processing for certain applications
This enables certain nomination applications made by Accredited Sponsors to be automatically approved by the Department of Home Affairs immediately. - Alternative methods for character
As an Accredited Sponsor, you have the option to provide a character reference for all TSS visa applicants you have nominated. TSS visa applicants do not need to provide clearance certificates for every country in which they have resided provided the business can attest to their good character. Please note that this alternative method does not apply to Australian Federal Police checks if required.
Acquiring overseas police clearances can be a rather extensive process giving rise to unexpected hurdles and delays. Having the option for sponsors to attest to their good character in lieu of overseas police clearances can significantly reduce processing times.
However, employers are suggested to only make these declarations where prior background checking has been completed and should be aware that the Department may revoke their accredited status in the event that the visa applicant is subsequently found out to not satisfy the character test on the basis of information that was available when making the declaration. - Alternative methods of conducting LMT
Accredited sponsors have more relaxed LMT requirements, with these businesses permitted to post job advertisements on their company website rather than through national recruitment websites. - Alternative methods of Market Salary Research
Accredited sponsors can rely on salary branding in their nomination applications, meaning time searching for equivalent job advertisements in the exact location or remuneration surveys will not be required.
Accredited status reduces onboarding time for employees as it reduces the time taken to collect documents prior to lodgement, and the time between lodgement and decision of the application.
Criteria to become an Accredited Sponsor
In order to become an Accredited Sponsor, companies must meet specific criteria which depend on the type of Organisation:
| Business categories | Criteria to be satisfied |
| Commonwealth, state, and territory government agencies | – Be an Australian government (Commonwealth, state or territory) department or agency – Australian workers make up at least 75% of your workforce in Australia |
| Australian Trusted Traders | – Be a current Australian Trusted Trader – Australian workers make up at least 75% of your workforce in Australia – All subclass 457 and/or TSS visa holders are engaged as employees under a written contract that meets National Employment Standards (NES) where they apply – All employees are paid in accordance with an Enterprise Agreement or an internal salary table that reflects the current market salary rates |
| Low volume usage and high percentage of Australian workers (at least 85%) | – Australian workers make up at least 85% of your workforce in Australia – Department of Home Affairs have approved at least one nomination for a TSS or subclass 457 visa holder in the last 2 years – Department of Home Affairs have approved more than 97% of your nomination applications in the last year – you are not a sole trader or a partnership you have an annual turnover of at least AUD4M for the last 2 years – you have been a standard business sponsor for at least 1 year – you have complied with all of your sponsor obligations have no adverse monitoring outcomes – All employees are paid in accordance with an Enterprise Agreement or an internal salary table that reflects the current market salary rates – All subclass 457 and/or TSS visa holders are engaged as employees under a written contract that meets National Employment Standards (NES) where they apply |
| High volume usage and medium percentage of Australian workers (at least 75%) | – Australian workers make up at least 85% of your workforce in Australia – Department of Home Affairs have approved at least one nomination for a TSS or subclass 457 visa holder in the last 2 years – Department of Home Affairs have approved more than 97% of your nomination applications in the last year – you are not a sole trader or a partnership – you have an annual turnover of at least AUD4M for the last 2 years – you have been a standard business sponsor for at least 1 year – you have complied with all of your sponsor obligations – have no adverse monitoring outcomes – All subclass 457 and/or TSS visa holders are engaged as employees under a written contract that meets National Employment Standards (NES) where they apply – All employees are paid in accordance with an Enterprise Agreement or an internal salary table that reflects the current market salary rates |
| Major investment in Australia | – have made a major investment in Australia (of at least AUD50M) which has directly generated Australian employment – are not a sole trader or a partnership – have been a standard business sponsor for at least one year – have nominations approved for at least one primary Temporary Skill Shortage or subclass 457 visa holder in the last year – Department of Home Affairs have approved more than 97% of your nomination applications in the last year – have no adverse monitoring outcomes – All subclass 457 and/or TSS visa holders are engaged as employees under a written contract that meets National Employment Standards (NES) where they apply – All employees are paid in accordance with an Enterprise Agreement or an internal salary table that reflects the current market salary rates |
If at the time of application for Accredited Status, a business does not meet the characteristics to achieve Accredited Status but they do meet the criteria for Standard Business Sponsorship. In that case, the business should be approved as a SBS for a period of 5 years.
As can be seen, accredited status is ideal for larger Australian companies sponsoring visas on a regular and ongoing basis and have this process as necessary to hire international workers as this workforce cannot be sourced by Australian workers. Australian employers that meet the Accredited Status criteria are encouraged to apply for accreditation to benefit from the the privileges of quicker visa processing.
If you are an Australian employer wishing to have your business’ eligibility assessed for Accredited status, please contact us for a consultation!
