Eligibility for a Business to Become a Standard Business Sponsor

The Department does not grant an SBS to every business that applies. There are several core requirements a business must meet before it can be approved. Understanding these requirements helps you prepare an application in the right direction.

Requirement 1: A genuine, operating business

The business must be genuinely operating in Australia or overseas.

A “genuine operation” means:

• It has real revenue and trading activity
• It is not a shell company or a company that exists only on paper
• It has employees or contracts with customers

A newly established startup can also apply for an SBS if it can prove a genuine operation even though revenue is still low — but it needs more evidence.

Requirement 2: No adverse information

The Department checks whether the business (and its key people) has any adverse information:

• Serious breaches of workplace law
• Past breaches of immigration obligations
• Involvement in fraud or exploitation of workers
• Discriminatory conduct

“Key people” includes directors, partners, and the head of HR.

Requirement 3: Not a prohibited sponsor

The business must not be on the list of “prohibited sponsors” — which usually follows a serious breach of immigration obligations.

Conditions on the nominated position (related)

After obtaining an SBS, each nomination must also prove:

• The position is genuine, not created in order to sponsor someone (the genuine position test)
• The occupation is on the relevant skilled occupation list
• The salary is at least the market salary rate for an Australian doing the same work

Startups and small businesses

The Department does not require a minimum revenue or a minimum number of employees to apply for an SBS. A startup or SME can still apply if it:

• Has evidence of operation (customer contracts, orders, invoices)
• Has a clear business plan
• Can demonstrate a genuine need for the position

Startup cases carry more risk and often need help from a professional migration agent.

Documents commonly requested

• An ASIC company extract
• ABN verification
• Business Activity Statements (BAS) or financial statements
• Evidence of business operation: contracts, invoices, an office lease
• Information about the directors and key people

Processing time

SBS assessment usually takes one to four months. In some cases it can take up to six months if the Department requests further information.