THE TRUE COSTS OF NOT EXPLORING SKILLED MIGRATION OPTIONS

How Regional Employers Lose $444/Day by Overlooking an $18/Day Solution

Most regional businesses compare the cost of sponsorship to “$0.”
But “doing nothing” about a critical vacancy costs far more than any visa process ever will.

The truth is simple:

A skilled migrant costs around $18/day, plus standard wages.
A vacancy costs around $444/day.

By the end, you’ll understand exactly why skilled migration is not an expense -
it’s a cashflow hedge, a retention engine, and the most reliable way to stabilise regional capacity.

1. The Real Cost of Doing Nothing

Vacancies are not neutral. They are a daily profit leak.

Say your business earns:

• Revenue per FTE (Full Time Employee): $320,000/year

• Contribution margin: 35%

Then:

Daily Lost Contribution = $320,000 ÷ 230 × 35%
= $444/day

This is the Cost of Vacancy (CoV).

Even a 60-day vacancy burns:

$444 × 60 = $26,640
…per role.

Multiply this by:

• overtime

• burnout

• scrap/rework

• distraction/pressure

• project delays

• lost tenders/clients

…and a simple vacancy becomes one of the largest unbudgeted losses in your P&L.

2. The Retention Edge: Why Skilled Migration Stops the Bleeding

Regional employers also face a structural issue:
local workers are mobile; sponsored workers - not so much.

✅ 482 (TSS) - Immediate Capacity

Fastest pathway for urgent staffing gaps.

✅ 494 (Regional) - Long-Term Stability

The worker must live and work in the region for 3 years to obtain PR (191).
This helps lock in stability and capacity.

Even with the future Skills in Demand (SID) visa introducing portability, that system will take years to fully implement. The 494 is still the strongest retention tool in regional Australia today.

3. New Financial Framing: Skilled Migration Costs LESS Than You Think

✅ We use the CFO approach:

Fixed Costs = spread across 5 years
Variable Costs = spread across 3 years per worker

This reveals the true, tiny daily cost.

4. The Numbers

✅ FIXED COST (One-off SBS, valid for 5 years)

• Professional SBS Fee: ± $4,500

• Govt Fee: $420
  Total SBS Cost: $4,920

Spread over 5 years:

• $4,920 ÷ 5 = $984/year

• $984 ÷ 261(d/yr) = $3.77/day ($0.47/hr)

✅ Daily Cost to Become a Sponsor: $3.77/day

✅ VARIABLE PER-WORKER COST (Nomination + Visa + SAF + Prof. Fees)

• Professional fee per worker: <$5,500 (Example on the high side for calculation purposes)

• Govt fees (482 example):

  • Nomination: $330

  • Visa fee: $3,115

  • SAF Levy (small business): $2,400
    Total Govt Fees: $5,845
    Total Per Worker Cost: $11,345

Spread over 3 years:

• $11,345 ÷ 3 = $3,781/year

• $3,781 ÷ 261 = $14.49/day ($1.81/Hr)

✅ Daily Cost Per Sponsored Worker: $14.49/day

✅ 5. Combined Daily Cost: The Number That Changes Everything

Total Daily Cost to hire your first migrant worker:

$3.77/day (SBS) + $14.49/day (worker)
= $18.26/day

That’s it!

Eighteen dollars and twenty-six cents.

To stop a $444/day loss.
To stabilise output.
To protect quality.
To prevent burnout.
To stop churn.
To meet deadlines/keep Clients
To say “yes” to work instead of “sorry, we don’t have staff.”

This is the entire business case.

6. Additional Staff Brings the $ Down Further

Because SBS is fixed for 5 years, the marginal cost for additional workers is low.

For 3 Workers:

• SBS per worker/day: $3.77 ÷ 3 = $1.26/day

• Worker cost: $14.49/day

• Total per worker: $18.26/day ($2.29/Hr)

But for simplicity, the headline remains:

✅ Expected daily cost per worker ≈ $18/day

This is consistent, predictable, and incredibly efficient.

7. Labour Market Testing (LMT) - Your Board-Ready Justification

LMT isn’t administrative noise.
It’s your evidence that:

• the vacancy is real

• the search was genuine

• no local worker met requirements

When your exec team sees an objective, compliant record showing a 60+ day failed search, the $18/day investment becomes a no-brainer.

AU Visas can manage LMT end-to-end with compliance precision.

8. The Accountant’s View: Tax-Deductible + Compliance

✅ Tax Deductibility

Sponsorship costs (SBS + Nom + Pro fees) are generally tax-deductible business expenses.

✅ Compliance

Two obligations matter most:

1. TSMIT ($70,000 today → $76,515 from July 2025)

2. AMSR (Annual Market Salary Rate)

   • The real audit trap

   • Must match what an equivalent Australian earns

We build your payroll, contracts, duties, and records to be audit-proof.

9. DAMA: Your Competitive Moat

A Designated Area Migration Agreement (although time-consuming to get) gives you:

• access to roles not on standard lists

• age concessions (often up to 55)

• English concessions

• industry-specific flexibility

If you're in a DAMA region, your competitors in metro areas cannot access the same talent pool.

(AU Visas can help with your SBS now and your DAMA strategy for later, if desired.)

10. Strategic Summary — C-Suite Decision Logic

CFO: “$18/day vs $444/day. This is not an expense; it’s a bath plug.”
COO: “Vacancies choke throughput. Sponsored workers can restore flow.”
CHRO: “Turnover costs 30–150% of salary. Retention could save six figures.”
Compliance Lead: “AMSR and TSMIT require precision. Who can ensure compliance?”
CEO: “Capacity is a strategy. Skilled migration can make growth possible.”

Skilled migration isn’t Plan B.
It’s the only plan that gives you cost certainty AND workforce certainty.

✅ YOUR (REGIONAL EMPLOYER) CHECKLIST

“Are We Losing Money by Delaying Skilled Migration?”

Tick every line that applies:

Vacancy / Output

• Vacancy > 30 days

• Supervisors covering shifts

• Overtime above 1.5×

• Declined work / delayed work

• Scrap or rework rising

Workforce Stability

• Turnover > 15%

• Mis-hire in last 12 months

• Burnout indicators

• Morale issues affecting quality

Recruitment Reality

• Local ads generate <5 qualified applicants

• Trade roles persist unfilled

• Repeating same ad cycle

Strategic Needs

• New contracts coming

• Key staff retiring

• Succession gaps

• Competition from larger towns

If you tick 4 or more, skilled migration is almost always cheaper than doing nothing.

Related Articles that you may enjoy

• https://auvisas.au/post/becoming-a-business-sponsor

• https://auvisas.au/post/common-visa-mistakes

• https://auvisas.au/post/labour-market-testing

• https://auvisas.au/post/costperday

• https://auvisas.au/blog

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

• Cost of Doing Nothing (CoDN) The financial losses incurred by leaving a skilled role unfilled, including lost contribution margin, overtime, supervisor burnout, rework, delay penalties, and lost contracts.

• Cost of Vacancy (CoV) A calculation that measures how much revenue and profit a business loses per day while a role remains unfilled. In this model, CoV = $444/day.

• Standard Business Sponsorship (SBS) The approval required for employers to sponsor overseas workers for 482, 494, DAMA and other employer-sponsored visas. Valid for 5 years.

• 482 Visa (Temporary Skill Shortage – TSS) A temporary visa that allows employers to fill critical skill shortages with overseas workers for up to 4 years.

• 494 Visa (Skilled Employer Sponsored Regional – SESR) A 5-year regional-only visa. Workers must complete 3 years of regional employment to apply for PR through the 191 visa.

• 191 Visa (Permanent Residence – Skilled Regional) The permanent residency pathway available to 494 visa holders who meet regional work and income criteria.

• Skilling Australians Fund (SAF) Levy A mandatory training levy paid by employers for each nomination.
  – Small business: $1,200 per year
  – Large business: $1,800 per year

• Annual Market Salary Rate (AMSR) The salary an equivalent Australian worker earns in the same location. Employers must pay the higher of AMSR or TSMIT.

• TSMIT – Temporary Skilled Migration Income Threshold A minimum salary floor for sponsored workers. Currently $76,515 from 1 July 2025.

• Labour Market Testing (LMT) A mandatory requirement to advertise the role locally before sponsoring a worker. Ads must run for 28 consecutive days with required information.

• Retention Advantage (Skilled Migration) The reduced risk of losing staff because of visa conditions that tie workers to regional employers or create incentives to stay until PR eligibility.

• DAMA – Designated Area Migration Agreement A region-specific agreement giving employers access to additional occupations, concessions, and a larger talent pool not available in standard visa programs.

• Nomination Application The employer’s application to Home Affairs to prove:
  – the job is genuine
  – the salary meets AMSR/TSMIT
  – LMT was completed
  – the business is compliant

• Contribution Margin The amount of profit left after variable costs, used to calculate lost earnings when vacancies exist. In your model, the contribution margin is 35%.

• Virtual C-Suite Advisory AU Visas’ strategic service helping regional employers make CFO-, COO-, CHRO-, and CEO-level workforce decisions using modelling, compliance rules, and labour economics.

• Skills in Demand (SID) Visa The upcoming replacement for the 482 visa. Expected to increase mobility for workers but not immediately replace existing retention structures like the 494.

• CoV Modelling The analytical process used to quantify the daily and total financial cost of vacancies in regional businesses.