Standard Business Sponsorship & 457 Visas

Standard Business Sponsorship (“SBS”) is what a business needs to obtain for in order to sponsor foreign national for the Long-term Subclass 457 visa.

Domestic Business Sponsors

A business must have DIAC approved SBS before it can sponsor foreign national workers under the Subclass 457 visa program. A business can only have one SBS approved at any give time (i.e. one approved SBS per ABN). Once the SBS is approved, it is valid for a period of 3 years. The business can apply to have its SBS period extended.

In a SBS application, the business must demonstrate that it meets the following requirements:

  1. The business is actively and lawfully operating in Australia
  2. The business meets the ‘Training Benchmark’ and it makes a commitment that it will continue to satisfy the ‘Training Benchmark’ in the future
  3. The business needs to attest that it has a strong record or demonstrated commitment to employing local labour and non-discriminatory employment practices (testament made in application form)
  4. There must be nothing adverse known about the business or a person associated with the business. Adverse information includes the conviction, finding of non-compliance, administrative action, investigation, legal proceedings or insolvency. There is no requirement for sponsorship applicants to provide details of any adverse information about themselves or people associated with them

Overseas Business Sponsorship

For an overseas business to obtain SBS, it needs to satisfy the following requirements:

  1. The business must be lawfully operating outside of Australia.
  2. There must be nothing adverse known about the business or a person associated with the business. Adverse information includes the conviction, finding of non-compliance, administrative action, investigation, legal proceedings or insolvency. There is no requirement for sponsorship applicants to provide details of any adverse information about themselves or people associated with them.
  3. In sponsoring an individual for a 457 visa, the business must have the intention the sponsored individual is coming to Australia to undertake one of the following:

a) Establish, or assist in establishing a business operation in Australia with overseas connections, or

b) Fulfil, or assist in fulfilling, the business’ contractual obligations.

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9 thoughts on “Standard Business Sponsorship & 457 Visas

  1. andrea

    Dear Peng
    Im wondering if Im qualified to apply for a 457 visa as cook with a certificate 3 in commercial cookery.
    I dont have 2 years on-the-job training post-qualification.
    I have 8 years full time experience as cook/assistant chef but they are hard to demonstrate (cash in the hands job is a common practice in Italy). All I can show is letters of reference and part time payment slips. If a certificate3 meets what is specified in the employer nomination may I be ok to apply? I hold italian passport and I passed IELTS. Regards

    Reply
    1. Peng Cheng Post author

      Hi Andrea,
      Its hard to predict how DIAC will view your evidence of your work experience without looking at it – all I can say is that you may be eligible based on your work experience and Cert III.
      PC

      Reply
  2. Jennifer

    Hi Peng,

    Can you please advise whether an independent contractor (sole trader) is eligible to apply for standard business sponsorship under the 457 visa scheme to recruit an overseas based employee?

    I am not sure how they would be able to meet the training benchmark requirements if so?

    Any advice?

    Many thanks
    Jennifer

    Reply
    1. Peng Cheng Post author

      Hi Jennifer,
      Potentially, you can obtain SBS as a sole trader. The training benchmark requirement is the same for a sole trader.
      PC

      Reply
  3. Raju

    I got 457 visa my employer wants me to sponsore for ens 186 after 12 month working on 457 visa and passed the skill test as well and already apply for ens 186 but i am confused on ielts how much i need ielts for that pleasee suggest thanx

    Reply
  4. PK

    Hi peng,

    Thanks for helping do many people with their queries. I just wanted check with you that currently I m currently on 457 visa since feb 2012. i have completed 17 months under the nominated job in a regional area. (i work as Reception manager in hotel)
    1st ques – when will my 2 years be considered as completed, as in from date of visa issue or from the date i have commenced the role.

    2nd ques – can I then apply indepently for RSMS

    3rd ques – ENS- in this visa do i need only employent letter or the company has to sponsor me.

    please help,,,many thanks

    Reply
  5. PK

    Hi Peng,

    Thanks a ton, however 3 rd question – yes means – I need only employment letter OR – I need employer to sponser me.

    Thanks

    Reply

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