Key Takeaways:
- Sponsoring a skilled worker in Australia involves multiple costs, including government fees, the Skilling Australians Fund (SAF) levy, and legal or migration agent charges, all of which vary by visa type and business size.
- Typical government fees for the TSS (subclass 482) visa include $420 for sponsorship, $330 for nomination, and $1,455–$3,035 for the visa itself, plus the SAF levy at $1,200–$1,800 per year, per nominee.
- Legal support is key to compliance and efficiency, with professional fees ranging from $3,000 to $6,000+, covering consultation, application preparation, and post-approval compliance guidance
Australia’s growing skills shortage is prompting many businesses to look beyond local borders for talent. For sectors like hospitality, aged care, IT, and construction, employer-sponsored migration has become a crucial solution. Yet, many employers are hesitant to proceed, unsure about the true costs involved.
While sponsoring an overseas worker requires multiple financial commitments, it’s often more manageable and cost-effective than expected when approached with a clear strategy. In this article, we break down every cost involved in sponsoring a skilled employee in Australia, from government fees to legal support, so you can plan confidently and compliantly.
What are the Costs of Sponsoring an Overseas Worker in Australia?
Employer-sponsored migration involves several separate fees. Understanding each component helps with budgeting and compliance.
- Sponsorship application fee: A one-off fee to become an approved Standard Business Sponsor. This is your gateway to legally sponsoring overseas talent.
- Nomination fee: Paid for each position being filled by an overseas worker. This reflects the government’s review of the role’s eligibility.
- Visa application fee: Typically paid by the employer, employee, or split depending on agreements. This varies depending on the visa stream and number of applicants.
- Skilling Australians Fund (SAF) levy: A significant cost, based on business size and visa length. This must be paid upfront for each year of the nomination.
- Legal and migration agent fees: Professional fees to prepare, lodge, and manage applications. These can vary significantly depending on complexity.
- Ancillary costs: Includes health checks, translations, police clearances, English tests, and other administrative requirements often required for final submission.
Each of these elements varies based on visa subclass, business size, number of nominees, and contract duration. Businesses should ensure they understand how these variables affect the total sponsorship investment.
Government Fees Breakdown (Standard Business Sponsorship + TSS Visa)
The following table outlines standard 2024–2025 government fees for the TSS (Temporary Skill Shortage, subclass 482) visa pathway:
| Component | Cost (AUD) |
| Business sponsorship application | $420 |
| Nomination application (per nominee) | $330 |
| Visa application (main applicant) | $1,455 – $3,035* |
| SAF levy (per nominee, per year) | $1,200 (small business), $1,800 (large business) |
*Visa fee depends on stream (short-term, medium-term, or labour agreement) and whether dependents are included. Additional visa subclasses like 186 (Employer Nomination Scheme) or 494 (Skilled Employer Sponsored Regional) have separate fee structures.
What Is the Skilling Australians Fund (SAF) Levy?
The SAF levy is designed to fund training for Australian workers. It’s mandatory for all employer-sponsored nominations and must be paid upfront. The amount depends on two key factors: the size of the business and the number of years the nominee is being sponsored for.
- Small businesses (turnover under $10 million): $1,200 per nominee per year
- Other businesses: $1,800 per nominee per year
Example: A small business nominating a chef for a 2-year visa pays 2 x $1,200 = $2,400. A large enterprise would pay 2 x $1,800 = $3,600. This levy is non-refundable, even if the application is withdrawn or refused. It is a legal requirement and cannot be passed onto the employee under any circumstances. Employers should factor the SAF levy into their long-term workforce planning as it applies each time a new nomination is submitted.
Legal and Migration Agent Fees for Employer Sponsored Visas
Professional support adds value by managing compliance and improving approval prospects. Lawyers and registered migration agents offer essential guidance in preparing strong, error-free submissions and navigating complex criteria. Typical fee ranges for Employer Sponsored Visa advice:
| Service | Cost Range (AUD) |
| Initial consultation | $200 – $400 (sometimes credited towards full service) |
| Sponsorship application | $800 – $1,500 |
| Nomination application | $1,000 – $2,000 |
| Visa lodgement (per employee) | $1,500 – $3,000 |
| Total package (approx.) | $3,000 – $6,000+ |
Legal providers and migration agents may also offer additional services such as:
- Document checklists and verification
- Timely updates on changes in immigration law
- Lodgement tracking and follow-up with the Department of Home Affairs
- Support with visa compliance training and audits
Investing in legal services not only increases the chances of success but also saves time and prevents costly errors.
Total Estimated Costs (Example Scenarios)
Below are two anonymised case scenarios illustrating typical all-in costs:
Scenario 1: Small Cafe Hiring a Cook (2-Year TSS Visa)
| Cost Item | Amount (AUD) |
| Business sponsorship | $420 |
| Nomination fee | $330 |
| SAF levy (2 years) | $2,400 |
| Visa application | $1,455 |
| Legal fees (total) | $2,500 |
| Total estimated cost | $7,105 |
Scenario 2: IT Firm Sponsoring Developer + Spouse (4-Year Visa)
| Cost Item | Amount (AUD) |
| Business sponsorship | $420 |
| Nomination fee | $330 |
| SAF levy (4 years) | $7,200 |
| Visa application (main + spouse) | $4,560 |
| Legal fees (total) | $3,500 |
| Total estimated cost | $16,010 |
These examples highlight how visa length, business size, and family composition affect overall cost. For regional employers, the 494 visa may be a more suitable and cost-effective option, particularly when combined with regional migration incentives.
Other Important Considerations
How Long does it Take to Process an Employer Sponsored Visa?
Employer Sponsored Visa processing can take between 1 and 6 months, depending on the visa subclass, industry, and application quality. Delays can impact business operations if recruitment timelines are tight. Starting early and consulting a migration advisor can prevent costly setbacks.
Who Pays What?
By law, employers must pay the SAF levy and cannot recover it from the employee. Most businesses also cover the nomination fee and part or all of the visa application costs. Having a transparent cost-sharing agreement in employment contracts can help manage expectations.
Are Employee Sponsorship Costs Tax Deductible?
Many employer-sponsored visa costs, including legal fees and government charges, may be deductible as business expenses. Always seek advice from a tax accountant to understand your entitlements.
Compliance Obligations
Once a visa is granted, employers must adhere to sponsorship obligations including:
- Paying the correct salary as stated in the nomination
- Notifying Home Affairs of any changes to the nominee’s employment
- Keeping records of employment and compliance
Failing to meet these requirements can result in fines, cancellation of sponsorship rights, or reputational damage.
How a Migration Lawyer Can Help Streamline the Process
Navigating employee sponsorship is complex, especially for first-time sponsors. A migration lawyer can provide:
- Pre-application strategy and eligibility assessment
- Step-by-step support through all application stages
- Drafting and reviewing employment contracts for compliance
- Representation in case of requests for further information or appeals
- Ongoing support post-approval to maintain compliance
Their involvement reduces risk and saves significant time for HR teams and business owners.
Is Sponsoring Worth the Investment?
Employer-sponsored migration is a strategic investment in workforce growth and business continuity. While the upfront costs may seem significant, the long-term benefits often outweigh the initial outlay:
- Access to specialised skills unavailable locally
- Improved staff retention compared to casual or temp workers
- Greater flexibility in workforce planning
- Enhanced business reputation and productivity
When executed correctly, sponsorship delivers strong return on investment. With clear advice and expert legal support, Australian businesses can meet talent needs efficiently and with confidence. Contact our legal team today to receive a tailored estimate based on your business size, visa type, and recruitment goals.