Becoming a Business Sponsor (Standard, DAMA, and Skilled Visas such as 494)
Fact Sheet - Becoming a Business Sponsor (Standard, DAMA, and Skilled Visas such as 494)
A practical guide for business owners and managers in regional Australia.
1. Quick overview
Sponsorship = approval for your business to nominate skilled overseas workers when locals cannot be found.
Two main types:
Standard Business Sponsorship (SBS): the default, valid nationally, up to 5 years.
Labour Agreement / DAMA Sponsorship: specific to your region’s agreement (e.g. Orana DAMA), includes broader occupations and concessions.
Why it matters: You cannot sponsor workers (nominate) for a 494, 482, or other employer-sponsored visa without first being an approved sponsor.
2. Eligibility (what your business must show)
Common requirements (SBS and DAMA):
Lawful operation in Australia (ABN/ACN, trading activity evidence).
Financial capacity to employ (financial statements, BAS, tax records).
Genuine need for the position.
Compliance history: no major breaches of workplace or migration law.
Additional DAMA requirements:
Employer must be located in the Designated Area (e.g. Orana region).
Role must be on the DAMA occupation list (which is broader than the national list).
DAR (Designated Area Representative) endorsement required before Home Affairs application.
3. Pathways — SBS vs DAMA
Important: Businesses can hold both SBS and a DAMA labour agreement at the same time.
4. Sponsorship, nomination, and visa — the three layers
Sponsorship (SBS or DAMA): about your business.
Nomination: about the job/position. Employer pays SAF levy here.
Visa application: about the worker (skills, English, health, character).
In practice:
Many businesses lodge sponsorship + nomination + visa applications together so processing runs in sequence.
If SBS/DAMA is refused, the linked nomination and visa cannot succeed.
5. Timeframes (indicative only)
SBS application: 1-4 weeks typical if documents are complete.
DAMA labour agreement: 2-6 months (endorsement + DHA approval).
Nomination & visa: Several weeks to months depending on stream, Department workload, and whether skills assessments/English tests are ready.
Planning tip: Budget 3-6 months end-to-end, especially for DAMA.
6. Costs (check official site for current figures)
SBS application fee: AUD 420 (valid up to 5 years).
DAMA labour agreement: No extra DHA fee beyond the standard, but some regions charge DAR endorsement fees.
Nomination fee: AUD 330.
SAF levy: AUD 1,200 per year (small business, turnover < $10m) or AUD 1,800 per year (larger business). Paid at nomination stage, non-refundable.
Visa application charge: paid by worker (unless employer agrees). Amount varies by visa subclass.
Other costs: migration agent fees, skills assessments, advertising, relocation.
7. Benefits to business
Access to a larger pool of skilled workers.
DAMA gives extra flexibility for roles not on the national list.
Helps businesses in regional areas fill persistent skill shortages.
494 visa gives a pathway to permanent residency (after 3 years, subject to conditions).
8. Cautions and compliance
Ongoing obligations: keep records, pay market salary, notify DHA of changes.
Audits and penalties: breaches can result in fines or cancellation of sponsorship.
SAF levy is non-refundable even if the nomination is refused.
Labour market testing: must advertise roles properly (keep evidence).
DAMA-specific risks:
Additional admin layer (DAR).
Concessions don’t mean no standards — you still need to justify each case.
9. Practical tips
If in doubt, start with SBS: quicker, simpler, and you can still add DAMA later.
Use DAMA strategically for niche or semi-skilled roles.
Have compliance systems (visa expiry tracking, payroll checks).
Use a registered migration agent for first applications — errors cost time and levy money.
Keep advertising records in a file — at least 28 days, with screenshots.
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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
ANZSCO (Australian and New Zealand Standard Classification of Occupations) The system used by the Australian Government to classify occupations and skill levels for visas.
SBS — Standard Business Sponsorship Approval that allows an employer to sponsor skilled overseas workers. Required before lodging any nomination for a 482, 494, or 186 visa.
DAMA — Designated Area Migration Agreement A regional migration framework allowing employers to access additional occupations and concessions not available under standard skilled visas.
Labour Agreement A formal agreement between an employer and the Department of Home Affairs permitting them to sponsor workers outside standard occupation lists. DAMA is a subtype.
DAR — Designated Area Representative The local body (e.g., RDA Orana) responsible for assessing and endorsing DAMA applications.
Nomination The stage where the employer identifies the specific job role for the visa applicant and pays the SAF levy.
SAF Levy — Skilling Australians Fund Levy A government levy paid at nomination stage to fund domestic training programs. Non-refundable.
LMT — Labour Market Testing The requirement to advertise a role locally before sponsoring an overseas worker, proving no suitable Australian workers were available.
AMSR — Annual Market Salary Rate The average wage Australians are paid for the same job in the same location. Sponsored workers must be paid at least this rate.
TSMIT — Temporary Skilled Migration Income Threshold The minimum salary floor for skilled visa applicants. Employers must pay at least TSMIT or the AMSR, whichever is higher.
482 Visa — Temporary Skill Shortage Visa Allows employers to bring skilled overseas workers for up to four years.
494 Visa — Skilled Employer Sponsored Regional Visa A regional visa requiring sponsorship and Regional Certifying Body advice, with a pathway to PR after three years.
RCB — Regional Certifying Body Local authorities responsible for assessing salary and job genuineness for 494 visa nominations.
PR — Permanent Residency Long-term residency status in Australia. Common pathways include the 191 or 186 visas.
Skills Assessment A formal evaluation confirming an applicant’s qualifications and experience align with the nominated occupation.
Visa Streams (482/494/186) Different pathways for skilled workers, each with specific criteria relating to skills, English, health, and employer obligations.
Business Sponsorship Obligations Legal requirements employers must adhere to, including accurate record-keeping, correct pay, workplace law compliance, and timely notifications to Home Affairs.
