The 494 Skilled Employer Sponsored Regional Visa Explained
Helping Regional Businesses Build Stable, Long-Term Workforces
Regional employers across Australia are facing a growing challenge - not just finding skilled workers, but keeping them. When local recruitment options dry up and turnover rises, the 494 Skilled Employer Sponsored Regional Visa (subclass 494) can become a powerful workforce solution.
But what exactly does it mean for your business, and how is it different from the more common 482 visa?
Let’s break down what every regional employer needs to know before sponsoring under the 494 program.
What Is the 494 Visa?
The Skilled Employer Sponsored Regional (SESR) 494 visa allows Australian businesses operating in designated regional areas to sponsor skilled workers from overseas (or already in Australia) for up to five years.
It was specifically designed to help regional employers fill genuine skill shortages that can’t be met locally - while encouraging workers to live and work in regional Australia longer term.
Unlike the 482 visa, which is open nationwide, the 494 is only available to regional employers and ties the worker to both the sponsoring business and the regional area.
Key Benefits of the 494 Visa for Regional Employers
1. Longer Retention and Stability
The 494 visa helps reduce the “city drift” problem common with the 482 visa. Workers sponsored under this program must live and work in a regional area for at least three years before becoming eligible for permanent residency (PR).
That means your business enjoys greater workforce stability and less risk of losing skilled staff to urban competitors.
2. Access to a Broader Talent Pool
Because the 494 visa supports regional development, the government allows a wider range of eligible occupations - including trades, technical roles, and emerging regional skills. This flexibility means you can fill roles that might not meet the strict occupation lists for city-based sponsorships.
3. Clear PR Pathway for Staff
One of the strongest selling points to overseas candidates is the direct pathway to permanent residency via the Subclass 191 Permanent Residence (Skilled Regional) visa after just three years of regional work and meeting a minimum income threshold. This makes it easier to attract high-quality candidates who are motivated to stay and contribute long-term - a real advantage for regional employers seeking commitment.
4. Supports Regional Growth Goals
Using the 494 visa aligns your business with government-supported regional development priorities, which can enhance your reputation and improve your access to other regional funding or incentive programs.
494 Visa Costs & Key Requirements for Employers
Like any sponsorship visa, there are obligations and upfront costs to be aware of.
Sponsorship approval: Your business must become an approved standard business sponsor (or labour agreement sponsor).
Nomination fee: NIL. Unlike the 482 visa, there is no direct nomination fee paid to the Department of Home Affairs for the 494 visa.
Skilling Australians Fund (SAF) levy: This is a one-off payment for the visa's entire 5-year term.
$3,000 (businesses with turnover < $10M)
$5,000 (turnover ≥ $10M)
Visa application fee (paid by worker): Around $4,640 as of Early October 2025.
Market salary and genuine position test: You must prove the role is genuine, full-time, and paid at market rates. The position must also be likely to exist for at least five years.
Labour Market Testing (LMT): Required - you must advertise the role locally and demonstrate that no suitable Australians were available.
💡 Tip: Keep meticulous evidence of your recruitment process and job advertisements (e.g., ad copies, dates, and applicant resumes) - it’s a key compliance requirement.
Employer Obligations & Visa Conditions
Once your business sponsors a worker, you must:
Ensure the employee works only in the nominated occupation and at the approved regional location (Condition 8608).
Notify the Department of Home Affairs of any significant changes (resignation, new location, business restructure, etc.).
Maintain records for sponsorship compliance audits.
Pay equivalent wages to Australian workers performing similar roles.
Failure to meet these obligations can lead to fines, suspension, or loss of sponsorship approval.
Key Limitations to Consider
1. Commitment to Regional Operation
This visa is designed to strengthen regional economies - meaning you can’t transfer the worker to a city office or project. It suits employers who plan to grow locally, not relocate operations.
2. More Paperwork and Processing Time
The 494 process is more detailed than a 482 due to the mandatory skills assessment for the applicant and the RCB assessment for the nomination. While processing times can vary, they are typically longer than for a 482 visa, so it's important to factor this into your workforce planning.
3. Restricted Worker Mobility
While the 494 reduces turnover risk, the worker's ability to change employers is also restricted. A new employer would need to lodge a new nomination application, and the visa holder has a limited time to find a new sponsor if their employment ceases.
✅ When the 494 Makes Sense for Your Business
The 494 visa is ideal if you:
Operate in a regional area and need skilled staff for long-term roles
Want to build a stable, committed workforce instead of rotating temporary hires
Are prepared to support a candidate’s PR pathway
Value regional retention more than short-term flexibility
If you’re planning to grow your regional team or fill a hard-to-recruit trade, engineering, or technical role - the 494 is worth exploring first.
Summary: The 494 Visa at a Glance
Factor 494 Visa
Visa Length Up to 5 years
Location Regional only
PR Pathway Yes - after 3 years
Labour Market Testing Required
Mobility Worker tied to employer & region
Best For Long-term regional retention
Next in This Series
In our next article, we’ll compare the 482 vs 494 visas side by side - helping you decide which visa type best suits your business goals, budget, and staffing strategy.
Final Thought
The 494 visa isn’t just a paperwork process - it’s a strategic workforce investment. For regional employers, it can mean the difference between constant turnover and a loyal, skilled team who grow with your business.
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Source: AU Visas Employer Guide Series
Disclaimer
The content provided is here is for informational purposes only and does not constitute immigration or legal advice. It is subject to change. Consult an Australian MARA registered agent or lawyer for professional advice before making any application
👉Contact AU Visas today for a Professional Opinion on Your Situation.
Glossary of Key Terms
494 Skilled Employer Sponsored Regional (SESR) Visa A provisional visa that allows regional employers to sponsor skilled workers for up to five years in designated regional areas, with a built-in pathway to permanent residency via the 191 visa.
482 Temporary Skill Shortage (TSS) Visa A temporary employer-sponsored visa that allows Australian businesses to address skill shortages when they cannot find suitably qualified local workers. Unlike the 494, it can be used in both metropolitan and regional areas.
Designated Regional Area Parts of Australia classified by the Government as “regional” for migration purposes. These areas are eligible for regional visas such as the 494 and 191.
Standard Business Sponsor An employer approved by the Department of Home Affairs to sponsor overseas workers on certain visas, including the 482 and 494. Sponsorship approval is normally granted for up to five years.
Nomination The application lodged by an employer to specify the position, occupation, location and nominated worker. For the 494, this also involves an assessment from a Regional Certifying Body.
Skilling Australians Fund (SAF) Levy A training levy paid by sponsoring employers when they nominate overseas workers. For the 494 visa, it is usually paid upfront for the full five-year visa period and cannot be recovered from the worker.
Labour Market Testing (LMT) The process of advertising a role locally to show that no suitably qualified Australian worker is available before sponsoring an overseas worker. It requires specific platforms, content and advertising duration.
Market Salary Rate / Annual Market Salary Rate (AMSR) The typical wage an equivalent Australian worker would earn for the same role in the same location. Employers must pay sponsored workers at least this rate to avoid undercutting local wages.
Regional Certifying Body (RCB) A local or regional authority that provides advice on certain aspects of 494 nominations, such as whether the position is genuine, appropriately paid and located in a designated regional area.
191 Permanent Residence (Skilled Regional) Visa A permanent visa designed for holders of eligible regional provisional visas (including the 494) who have lived, worked and paid tax in a designated regional area for the required period.
Visa Condition 8608 A condition often attached to employer-sponsored visas requiring the holder to work only in the nominated occupation, usually for the sponsoring employer and in the approved location.
Worker Mobility The ability of a sponsored worker to move between employers. For the 494 visa, mobility is more restricted than under the 482; any change of employer requires a new regional nomination and the position must remain in a designated regional area.
Regional Workforce Strategy A deliberate plan to build and maintain a stable, long-term workforce in a regional area, often combining local recruitment, training, and targeted skilled migration such as the 494 visa.
