Common Mistakes Employers Make with Visa Sponsorship - and How to Avoid Them
A Practical, Positive Guide for Regional Business Owners
Hiring skilled overseas workers is one of the smartest decisions a regional business can make. It solves chronic labour shortages, creates stability, and helps your business grow without constantly starting from scratch.
But even well-intentioned businesses can stumble over avoidable details.
The good news? Every mistake in this guide is preventable - and once you understand the sponsorship system, it becomes predictable, affordable, and repeatable.
Let’s turn the most common pitfalls into your regional employer success checklist.
Mistake 1: Confusing the Salary Requirements (TSMIT vs AMSR)
This is the number one cause of nomination refusals for the Subclass 482 (Temporary Skill Shortage) and Subclass 494 (Skilled Employer Sponsored Regional) visas.
Many employers think there is just one “minimum salary.”
In reality, two salary rules apply, and you must meet the Higher of:
1. TSMIT – Temporary Skilled Migration Income Threshold
The national minimum salary floor, set by the government.
➡️ TSMIT is $76,515 from 1 July 2025.
2. AMSR – Annual Market Salary Rate
The real salary an equivalent Australian worker earns in your region.
- and the AMSR is the rate of pay you must match or exceed when you sponsor a worker.
You must always pay the higher of:
✔️ TSMIT
or
✔️ AMSR
✅ How to Avoid This Mistake
Benchmark the role against the Modern Award, an Enterprise Agreement, or current local salaries.
Keep evidence: Australian worker payslips, job ads, industry surveys, or Fair Work award extracts.
If you are using a DAMA or Labour Agreement, check if you have a salary concession (e.g., 10% below TSMIT) - but only if written in your agreement.
Mistake 2: Incorrect or Incomplete Labour Market Testing (LMT)
Labour Market Testing (LMT) proves you tried to hire an Australian before turning overseas.
Most refusals come from non-compliant advertising.
LMT Must Include:
3 national ads (e.g., SEEK, Workforce Australia, Jora, company careers page)
Run for at least 28 consecutive days
Posted within the 4 months before nomination
Ads must include:
Job title
Skills/experience required
Salary or salary range
Business name
Duties
❌ Facebook-only or short ads do NOT count.
❌ Missing salary wording is the most common refusal point.
✅ How to Avoid This Mistake
Run exactly 3 ads, all compliant.
Capture dated screenshots of every ad.
Keep copies for five years (audit requirement).
Mistake 3: Missing Regional Timelines (RCB Advice + Nomination Windows)
For the Subclass 494 visa, regional employers must also obtain:
RCB – Regional Certifying Body Advice
This confirms the genuineness of the role and the local salary level.
RCB advice cannot be older than 3 months when lodging the nomination.
Common problems:
RCB expires → you must redo it
LMT expires → you must redo the advertising
Financials outdated → delay or refusal
✅ How to Avoid This Mistake
Keep a “Visa Timeline Tracker” spreadsheet.
Submit nomination within 90 days of completing LMT.
Update business financials annually — they will be reviewed again for PR.
Mistake 4: Making Verbal Promises About Permanent Residency (PR)
Regional employers are supportive by nature — but saying “We’ll get you PR” is risky.
The decision belongs to the Department of Home Affairs, not the employer.
❌ PR promises can breach your sponsorship obligations.
❌ Never put PR commitments in employment contracts.
✅ How to Avoid This Mistake
Use supportive but compliant language:
“If you meet the eligibility criteria, we will happily support your PR application.”
This keeps you compliant and protects both sides.
Mistake 5: Treating Sponsorship as “Set and Forget”
Once approved as a Standard Business Sponsor (SBS) or Labour Agreement holder, you must comply with ongoing obligations.
Home Affairs can audit you at any time.
You MUST:
Keep five years of records: payslips, rosters, contracts
Ensure the role stays substantially the same as the nominated position
Notify Home Affairs within 28 days if:
Duties change
Hours change
Employment ends
Business ownership changes
Do employers still need training records?
❌ No.
The old Training Benchmark requirement is gone.
It was replaced by the SAF levy (Skilling Australians Fund levy) in 2018.
You do not need to track training spend —
but you must pay the SAF levy for every nomination.
Mistake 6: Ignoring Overseas Recruitment and Clearance Costs
Recruiting workers from overseas (especially the Philippines and Pacific nations) involves separate, government-mandated deployment steps.
These are not part of the visa — they are source-country compliance.
Typical costs:
Philippines (DMW/POEA): $2,400–$6,000
Fiji / Pacific Islands: $1,500–$3,000
❌ You cannot recover these costs from the worker.
It is illegal and a major sponsor breach.
✅ How to Avoid This Mistake
Use licensed overseas recruiters only
Budget source-country costs upfront
Keep all receipts and contracts for audit purposes
Mistake 7: Trying to DIY the First Visa
Most employers only call for help after their nomination is refused — which is the most expensive way to sponsor.
Common DIY errors:
Non-compliant LMT
Incorrect AMSR
Duty mismatch between role and ANZSCO
Missing financial evidence
Wrong visa selected (482 vs 494)
✅ How to Avoid This Mistake
Get a Registered Migration Agent involved before advertising - all Government Fees still exist and are non-refundable if an application is rejected.
Use professional checklists
Think long-term: SBS approval lasts 5 years and can be reused
Final Thought: Sponsorship Is a System - And It Works
Once you understand the workflow:
SBS → LMT → RCB (for 494) → Nomination → Visa → PR Pathway
… the whole process becomes predictable and manageable.
For regional employers, sponsorship is not a burden.
It is a strategic workforce solution that brings:
Reliability
Retention
Skilled labour
Family stability
Long-term community growth
Your business doesn’t need to be big -
it just needs to be ready.
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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
TSMIT – Temporary Skilled Migration Income Threshold The government-set minimum salary floor for most sponsored workers. Nominated salaries must meet or exceed TSMIT unless a specific concession is written into a Labour Agreement.
AMSR – Annual Market Salary Rate The typical salary an equivalent Australian worker would receive for the same role in the same location. Sponsors must pay at least the higher of AMSR or TSMIT.
482 Visa – Temporary Skill Shortage (TSS) A temporary employer-sponsored visa that allows Australian businesses to fill genuine skill shortages with overseas workers when suitable local workers are not available.
494 Visa – Skilled Employer Sponsored Regional (SESR) A regional employer-sponsored visa that allows skilled workers to live and work in designated regional areas, usually with a pathway to permanent residency via the 191 visa.
Labour Market Testing (LMT) The process of advertising a role in specified ways to prove that no suitably qualified Australian workers are available before sponsoring an overseas worker.
RCB – Regional Certifying Body A regional authority that provides advice on certain nominations (such as the 494 visa), confirming that the position is genuine, appropriately paid and based in a designated regional area.
DAMA – Designated Area Migration Agreement A regional migration framework that allows designated areas to sponsor workers in additional occupations and with specified concessions, negotiated between the Government and a Designated Area Representative.
Labour Agreement A formal arrangement between an employer, industry body or region and the Australian Government that allows sponsorship of overseas workers under agreed terms that may differ from standard visa settings.
Standard Business Sponsor (SBS) An employer approved by the Department of Home Affairs to sponsor overseas workers on certain visas, typically for a period of up to five years.
SAF Levy – Skilling Australians Fund Levy A mandatory training levy that employers must pay for each nominated worker under most skilled employer-sponsored programs. It funds training for Australian workers and cannot be recovered from the sponsored worker.
ANZSCO – Australian and New Zealand Standard Classification of Occupations The classification system used to define occupations for migration and labour market purposes. Each sponsored position is linked to an ANZSCO code and associated duties.
Permanent Residency (PR) A visa status that allows a non-citizen to live and work in Australia indefinitely. PR is granted by the Government, not by employers, and is often the long-term goal of many sponsored workers.
Designated Area Representative (DAR) The regional body responsible for managing a DAMA in its area, including assessing employer endorsements and liaising with the Department of Home Affairs.
DMW / POEA (Philippines) Philippine government agencies responsible for regulating and approving overseas employment. Employers recruiting from the Philippines must usually work through licensed agencies and comply with DMW/POEA processes and clearances.
Enterprise Agreement (EA / EBA) A negotiated workplace agreement between an employer and employees (often with union involvement) that sets wages and conditions above the minimum modern award.
Modern Award A legal instrument setting minimum pay rates and conditions for specific industries and occupations. Sponsored workers must receive at least the applicable award conditions or the AMSR, whichever is higher.
