A frequent question for start-ups, new employers and newly established Australian entities is whether they can sponsor an overseas worker on a Subclass 482 visa.
The short answer is yes – a new business can sponsor a worker for a Subclass 482 visa, provided it can satisfy the sponsorship, nomination and visa requirements. Being newly established does not, by itself, prevent a business from sponsoring a skilled worker.
However, new businesses often face closer scrutiny because they may have limited trading history, financial records, or workforce evidence. The evidence provided at each stage is important, as a shortfall at either point may result in the refusal of an otherwise strong case.
What is considered a “new” or “start-up” business for 482 sponsorship purpose?
For 482 visa sponsorship, there is no single fixed statutory definition of a “new business” or “start-up business” in the Standard Business Sponsorship criteria.
In practical terms, however, a business will usually be treated as new or recently established if it has:
- only recently been registered;
- limited or no trading history;
- limited financial statements or tax records;
- recently commenced sales or service delivery;
- no established workforce or only a small workforce;
- no completed financial year; or
- been operating for less than about 12 months.
Policy specifically provides that more extensive and recent documentation is generally required where a business has been operating for less than 12 months, or is a small business with no prior dealings with the Department. Established businesses of longer standing may be required to provide comparatively less evidence.
Can a new business become an approved sponsor?
A new business may apply to become a sponsor if it can demonstrate that it is lawfully and actively operating.
The Department will generally want to see that the business is not merely registered on paper, but is genuinely operating or is ready to commence operations in a credible and lawful way.
Shelf companies, being entities that are legally established but not conducting any actual business activity, cannot meet this requirement. However, policy provides that new or start-up businesses that have traded for less than 12 months may still satisfy this criterion, provided they submit evidence to demonstrate that they are in fact operating, even if only for a short period.
It is important to note that registration for GST does not necessarily indicate that a business is actively operating, and the absence of registration may simply reflect that turnover falls below the relevant threshold, currently $75,000 for most entities and $150,000 for non-profit organisations, rather than indicating an absence of trading activity.
For a new Australian business, this may involve providing evidence such as:
- ABN and company registration details
- balance sheet or statement of position for the most recently concluded financial year, with comparative figures for the previous year
- profit and loss statement for the most recently concluded financial year, with comparative figures for the previous year
- business tax returns for the most recently concluded financial year
- a Business Activity Statement for each complete quarter between the end of the relevant financial period and the date of lodgement, where that period ended more than three months before lodgement
- a detailed business plan
- contract of sale relating to the purchase of the business
- lease agreement relating to business premises
- evidence of the lease or purchase of machinery, equipment or furniture
- contracts to provide services
- evidence of the employment of staff
- business bank statements covering the period of operation
- a letter of support from the business’s accountant
Key issue at the nomination stage: Is the position genuine?
For new businesses, one of the most important questions is whether the nominated position is genuine.
The employer must be able to explain:
- why the position is required;
- how the position fits within the business;
- what duties the worker will perform;
- whether the workload supports a full-time role;
- how the role aligns with the business’s current or planned operations; and
- whether the business can afford to pay the proposed salary.
This means being prepared to explain, with supporting evidence, why the business requires this particular position to be filled at the present time, rather than as part of a future or anticipated expansion.
For example, a newly opened restaurant may be able to justify sponsoring a Chef if it can show premises, menu development, fit-out, supplier arrangements, trading activity and a genuine need for kitchen staff.
By contrast, a company with no clients, no premises, no trading history and no clear business activity may find it difficult to establish that the nominated role is genuine.
Salary and market rate requirements
A new business must also demonstrate that the sponsored worker will be paid at the required rate.
This generally means showing that:
- the salary meets the applicable income threshold for the relevant Subclass 482 stream;
- the salary is consistent with Australian market salary rates;
- the terms and conditions are no less favourable than those offered to an equivalent Australian worker; and
- the business has the financial capacity to pay the worker.
Income thresholds are indexed and may change, so the current threshold should always be checked at the time of lodgement.
Does the business need to have Australian employees?
Not necessarily.
A business does not always need to have existing Australian employees before it can sponsor a worker. However, if there are no existing employees, the business should be prepared to explain why the overseas worker is needed and how the role supports the business operations.
For new businesses, a clear organisational structure and workforce plan can be very helpful.
Practical takeaways for new businesses
- The policy already accommodates businesses that have traded for less than 12 months, provided appropriate evidence is submitted. There is technically no need to wait for a longer trading history before proceeding.
- Evidence should be gathered early. Bank statements, contracts, lease agreements and an accountant’s letter of support may all assist in establishing genuine trading activity well before the business’s first tax return falls due.
- A higher evidentiary standard should be expected in comparison to an established business. New businesses should plan for more comprehensive documentation, not less.
- The business should be prepared to articulate a genuine and current need for the position, supported by its business plan and trading activity to date.
- Evidence relied upon at the SBS stage should be consistent with evidence relied upon at the nomination stage. Any inconsistency between the two may raise unnecessary concerns for the Department.
Why this matters
New businesses are often those most reliant on overseas talent in their early stages, yet they are also subject to the closest scrutiny. A clear understanding of what is required to demonstrate that a business is operating at the sponsorship stage, and actively operating at the nomination stage, together with careful preparation in relation to genuine need and salary capacity, can be determinative of the outcome.
If you operate a new or start-up business and are considering sponsoring a worker under the subclass 482 visa program, please contact Migration Affairs for advice tailored to your circumstances.
📧 info@migrationaffairs.com.au
🌐 migrationaffairs.com.au/contact
📞 +61 2 8226 8777
General information only. Immigration requirements are subject to change and should be checked against the current legislation, policy and Departmental guidance at the time of application.