Australia’s employer sponsored visa system has undergone significant reform in 2025 with the introduction of the new Skills in Demand Visa. For employers seeking to address workforce shortages and for skilled professionals aiming to secure employment and permanent residency, understanding these changes is essential. This guide clarifies the new framework, offering expert insights from Cedo Consulting to help you navigate the visa process with confidence and clarity.
What is an Employer Sponsored Visa?
Employer sponsored visas allow Australian businesses to hire skilled overseas workers when no suitably qualified local candidates are available. These visas are designed to address skill gaps in the labour market, particularly in sectors experiencing persistent shortages.
Key Visa Subclasses for 2025
In 2025, the traditional Temporary Skill Shortage 482 visa has been modified and changed to the Skills in Demand visa with three core streams:
- Skills in Demand Visa:
- Specialist Skills Stream: For highly skilled professionals in priority sectors such as healthcare, engineering, ICT, and advanced manufacturing.
- Core Skills Stream: Focuses on occupations critical to the Australian economy, including aged care, trades, education, and hospitality.
- Labour Agreement Stream: This stream allows businesses to sponsor skilled overseas workers for occupations not listed under the standard Skills in Demand streams. Labour agreements are typically used to address unique workforce needs in regional areas, niche industries, or emerging sectors. These agreements may include concessions on English language, salary, or skills requirements, based on labour market needs and negotiations with the Department of Home Affairs.
All three streams now offer a pathway to permanent residency after two years, creating a clearer, more inclusive route for skilled migrants.
Eligibility Criteria for Employer Sponsored Visa Applicants
Understanding your eligibility is the first step to a successful visa application. Requirements vary slightly between the Core Skills and Specialist Skills streams, but certain fundamental criteria apply across the board.
Skills and Occupation Lists
While the older occupation lists (MLTSSL and STSOL) have been phased out, the Skills in Demand Visa relies on a consolidated, stream-specific eligibility model.
- Core Skills Stream includes mid-level and essential service occupations needed nationwide.
- Specialist Skills Stream caters to roles demanding advanced qualifications and industry-specific expertise.
For a full list of eligible occupations, consult the official Department of Home Affairs occupation list.
Work Experience and English Language Requirements
Applicants must demonstrate both professional competency and communication skills.
- Work Experience:
- Minimum of one year full time work experience to apply and two years’ full-time, relevant employment experience to transition to Permanent Residency down track.
- English Language Proficiency:
- For the 186 permanent visa, IELTS score of at least 6.0 overall (no band less than 60), or
- PTE Academic score of 50 or higher.
- For the 482 temporary visa,, IELTS score of at least 5.0 overall (no band less than 5.0 in each component), or
- PTE Academic score of 36 or higher.
Health and Character Checks
Australia places strong emphasis on public safety and wellbeing. All applicants must:
- Undergo a medical examination by an approved panel physician.
- Provide police certificates from each country lived in for 12 months or more over the past 10 years.
In exceptional cases, character or health waivers may apply. A registered migration agent can assess these scenarios individually.
Employer Obligations and Eligibility
Businesses that intend to sponsor overseas talent must meet several legal and procedural obligations. These measures ensure the integrity of Australia’s migration program and fair treatment of migrant workers.
Becoming a Standard Business Sponsor
Employers must first obtain approval to sponsor workers. Some of theThe criteria include:
- Being actively and legally operating in Australia.
- Providing documentation such as:
- ABN registration,
- Recent financial reports,
- Evidence of business activity (e.g., invoices, contracts).
Sponsorship approval is typically valid for five years, subject to compliance.
Nomination Process and Associated Fees
Once sponsorship is approved, the employer must nominate the position and the chosen candidate. Key steps include:
- Submitting a nomination application detailing job title, duties, location, and salary.
- Paying the Skilling Australians Fund (SAF) levy:
- AUD $1,200 per year for small businesses (annual turnover less than $10M dollars).
- AUD $1,800 per year for larger businesses (annual turnover of $10M or more).
- Covering government nomination fees and ensuring employment terms match Australian standards.
Labour Market Testing (LMT)
To protect local employment opportunities, employers must conduct Labour Market Testing unless exempt. This involves:
- Advertising the role on at least two platforms (e.g., Seek, LinkedIn, Workforce Australia).
- Keeping ads live for a minimum of 28 consecutive days.
- Providing a detailed record of advertising dates, platforms, and candidate responses.
Failure to meet LMT requirements is one of the most common reasons for visa nomination refusals.
Employer Sponsored Visa Application Process (Step-by-Step)
Applying for an employer sponsored visa involves three key stages, each with specific documentation and timelines. Proper coordination between employer and applicant is crucial to avoid delays.
- Sponsorship Application:
- Business applies to become an approved sponsor via the Department of Home Affairs portal.
- Supporting documentation includes financials and evidence of lawful operation.
- Nomination Submission:
- Employer nominates the specific role and the visa applicant.
- LMT evidence, salary benchmarks, and employment conditions must be included.
- Visa Application:
- Applicant lodges a visa application, providing:
- Passport and identity documents,
- Proof of work experience,
- English test results,
- Health and police clearances, amongst other things.
- Applicant lodges a visa application, providing:
Processing times typically range between 4–8 months depending on the stream, industry, and application completeness. Additional wait times may apply if health or character checks are complex.
Common Pitfalls and How to Avoid Them
Many applications fail due to avoidable mistakes. Awareness and preparation can improve your chances of success.
Top pitfalls include:
- Incomplete Documentation:
- Ensure all required documents are current, translated (if needed), and correctly certified.
- Incorrect Stream Selection:
- Choosing between the Core or Specialist stream must reflect the actual occupation and skill level.
- Non-compliance with LMT:
- Adverts must be appropriately timed, worded, and documented.
Partnering with a trusted migration agency like Cedo Consulting can help you avoid these issues altogether.
Changes to Employer Sponsored Visas in 2025
Australia’s 2025 migration reforms aim to simplify the system while addressing urgent labour shortages. Key changes include:
- Consolidation of visa streams into the Skills in Demand Visa.
- Introduction of a clear two-year pathway to permanent residency for both streams.
- Abolishment of the Short-Term and Medium-Term occupation lists.
- Reduced complexity in the nomination process and more transparent eligibility criteria.
Employers and workers alike are encouraged to review updates on the Department of Home Affairs website.
Why Choose Cedo Consulting to Support your Employer Sponsored Visa Application
With the visa landscape evolving rapidly, expert advice is more important than ever. Cedo Consulting brings precision, care, and unmatched experience to every client interaction.
Why clients trust us:
- We design custom visa strategies tailored to your goals.
- Our team ensures every document is meticulously prepared and lodged on time.
- We provide ongoing support, including compliance advice and PR transition planning.
Expert Insight: Advice from Aleksandra Rajcevic
“Employer sponsorship is more than paperwork—it’s about future planning. At Cedo, we guide clients toward sustainable migration pathways that meet both business needs and personal aspirations.”
— Aleksandra Rajcevic, Principal Migration Consultant, Cedo Consulting
Need Help with Employer Sponsored Visas?
Whether you’re an employer facing recruitment gaps or a skilled migrant planning your move, Cedo Consulting can help you navigate the new visa streams with confidence and clarity.
Book a personalised consultation with our experienced team to get started today.