Standard Business Sponsorship: How Companies Can Sponsor Foreign Talent in 2024

The Growing Demand for Foreign Talent in Australia

In 2024, Australia's talent needs continue to grow, and many companies are looking internationally to fill critical skill gaps. The Standard Business Sponsorship (SBS) programme is the main pathway for Australian businesses to sponsor foreign workers, enabling them to bring skilled professionals into the country.

As the global competition for talent intensifies, understanding the SBS framework is essential for businesses hoping to leverage this opportunity. Whether you’re a small enterprise or a large corporation, sponsoring foreign workers can help you access diverse expertise and stay competitive.

In this article, we’ll explore how the Standard Business Sponsorship works, the benefits it offers to businesses, and the steps required to sponsor overseas workers in 2024.

What is Standard Business Sponsorship?

The Standard Business Sponsorship is a formal arrangement between the Australian Government and approved employers, allowing businesses to sponsor qualified foreign workers to fill roles in Australia. These roles are typically listed under the Temporary Skill Shortage (TSS) visa (subclass 482) or the Employer Nomination Scheme (ENS) visa (subclass 186).

By becoming an approved sponsor, companies gain the legal capacity to nominate foreign workers for skilled roles. However, to ensure compliance and ethical practices, businesses must meet several eligibility criteria and obligations.

Why Choose Standard Business Sponsorship in 2024?

In an increasingly globalised world, many industries are facing a skills shortage, and the demand for qualified professionals from abroad is growing. The Australian government recognises this challenge and supports businesses through the SBS programme to ensure they can access the talent they need.

Key Benefits for Businesses:

1. Access to Global Talent: Employers can tap into a broader talent pool, gaining access to professionals with specialised skills that may not be readily available locally.
2. Stay Competitive: Recruiting skilled foreign workers enables businesses to innovate and maintain a competitive edge in fast-paced industries.
3. Flexible Visa Options: SBS offers different visa streams like the TSS visa (short-term and medium-term), giving companies flexibility depending on their needs.
4. Pathway to Permanent Residency: For foreign workers, sponsorship can also lead to permanent residency, making Australia an attractive destination for top talent.

Eligibility Requirements for Standard Business Sponsorship

To sponsor a foreign worker, companies must meet several requirements. These include demonstrating that they are operating lawfully in Australia and can provide a genuine job opportunity for the overseas worker. Below are the key eligibility criteria:

1. Business Legitimacy

Businesses must prove that they are actively trading and registered in Australia. This includes providing evidence of turnover, company structure, and adherence to local laws and regulations.

2. Labour Market Testing

Employers are required to demonstrate that they have tried to hire Australian workers for the position by conducting Labour Market Testing (LMT). This involves advertising the job locally before seeking international talent.

3. Training Requirements

Companies must show a commitment to training the Australian workforce by investing in employee development. This could be through internal training programmes or contributions to the Skilling Australians Fund (SAF) levy.

4. No Adverse Information

A company must not have any adverse information such as breaches of workplace laws or immigration regulations.

How to Apply for Standard Business Sponsorship in 2024

Step 1: Apply to Become a Standard Business Sponsor

To sponsor a foreign worker, businesses first need to lodge an application to become an approved Standard Business Sponsor with the Department of Home Affairs. This involves submitting relevant documentation and paying a sponsorship fee. Once approved, sponsorship lasts for up to five years.

Step 2: Nominate a Skilled Worker

Once a business is an approved sponsor, the next step is to nominate the skilled foreign worker for a role. The worker’s skills must align with those listed on the Consolidated Skilled Occupation List (CSOL), and the role must meet minimum salary thresholds.

Step 3: Submit the Visa Application

After the nomination is approved, the foreign worker must apply for the relevant visa (e.g., TSS subclass 482 or ENS subclass 186). This involves providing documentation that supports their qualifications, work experience, and English language proficiency.

Costs Associated with Standard Business Sponsorship

1. Sponsorship Application Fee

The cost to apply for SBS approval varies depending on the size of the business. In 2024, the fees range from AUD 420 for small businesses to AUD 1,400 for large organisations.

2. Nomination Charges

Businesses must pay a nomination charge, which is currently AUD 330 per nomination. This fee covers the administrative costs of processing the nomination.

3. Skilling Australians Fund Levy

The SAF levy is a significant cost for sponsors. The amount varies based on the size of the business:

• Small businesses: AUD 1,200 per year for each worker sponsored.
• Larger businesses: AUD 1,800 per year for each worker sponsored.

4. Visa Application Fees

The foreign worker is responsible for paying their visa application fee, which varies depending on the visa stream and the number of applicants (including family members).

Common Challenges and Compliance Issues

1. Meeting Labour Market Testing Requirements

Many businesses face difficulties proving they have genuinely tried to recruit locally. It’s important to document all advertising efforts and ensure compliance with the strict LMT guidelines.

2. Monitoring Ongoing Obligations

After sponsoring a worker, businesses must continue to meet obligations, such as paying the foreign worker a salary in line with Australian market rates and notifying the Department of any changes in employment.

3. Compliance Audits

The Department of Home Affairs regularly conducts audits to ensure sponsors meet their obligations. Non-compliance can lead to penalties, including cancellation of sponsorship approval or legal action.

Future of Standard Business Sponsorship: Trends to Watch in 2024

1. Increased Focus on Skilled Migration

As Australia continues to recover from the effects of the pandemic and workforce shortages, 2024 is set to be a year of increased focus on skilled migration. The government is likely to prioritise visa processing for highly skilled professionals in critical sectors like healthcare, IT, and engineering.

2. Simplified Sponsorship Pathways

There may be reforms to streamline the sponsorship process, making it easier for small and medium businesses to participate in SBS. Stay updated with changes in immigration policy, as these can impact how businesses sponsor foreign talent.

Conclusion: Take Advantage of Global Talent in 2024

With the right strategy, sponsoring foreign workers through the Standard Business Sponsorship programme can unlock a world of talent for your business. Understanding the steps involved, from applying to become a sponsor to navigating compliance issues, is key to a successful sponsorship process.

Ready to sponsor foreign talent in 2024? Consider consulting with an expert to ensure your business meets all the requirements and takes full advantage of this opportunity.

Remember:

This post is for general informational purposes only and is not a substitute for professional immigration advice. Given the uniqueness of every case, engaging with a registered migration agent is highly recommended for bespoke guidance and to navigate the specific details of your situation effectively. Book a visa consultation with a Registered Migration Agent

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