Labour Market Testing Explained: What Employers Must Prove Before Sponsoring
October 6, 2026
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Standard business sponsorship (SBS) is the general approval that lets an Australian employer sponsor skilled workers. Accredited sponsorship is a higher-trust status available only to eligible businesses, and it brings priority processing. Accreditation can be a real advantage, but not every employer needs it.
Both statuses let you sponsor workers on the same two visas, the Skills in Demand visa (subclass 482) and the Skilled Employer Sponsored Regional (Provisional) visa (subclass 494). The difference lies in how Home Affairs assesses your business and how quickly it processes your applications.
A standard business sponsor is a business Home Affairs has assessed as suitable to sponsor workers. To be approved, you need to show that your business operates lawfully, is actively trading and can meet the obligations that come with sponsorship. You may need to supply supporting evidence about the business and its compliance processes.
Once approved, you can lodge nominations for workers. An SBS approval is valid for 5 years from the date the Department approves the application. Home Affairs lists the application charge as AUD420.
Our 482 visa page explains how sponsorship fits into the wider process for temporary skilled workers.
An accredited sponsor is a standard business sponsor that Home Affairs also recognises as a trusted sponsor. You cannot skip the first step, because to be an accredited sponsor you must be a standard business sponsor.
On top of that, your business should meet the characteristics of one of six categories. They include:
Accreditation is not simply about being a large company. Eligibility depends on meeting the specific characteristics for your category, and the main benefit is priority processing for 482 and 494 nominations and visa applications.
| Feature | Standard business sponsor | Accredited sponsor |
|---|---|---|
| Starting point | Open to businesses that meet the sponsorship requirements. | You must already be a standard business sponsor. |
| Visas you can sponsor | Skills in Demand (482) and Skilled Employer Sponsored Regional (494). | The same two visas. |
| Application charge | AUD420. | No additional fee if requested at the time of the sponsorship or renewal application. |
| Eligibility | Lawful operation, active trading and the ability to meet sponsor obligations. | The same, plus the characteristics of one of six categories. |
| Processing | Standard processing. | Priority for nominations and visa applications. |
| Labour market testing | Advertise on recruitment platforms such as national job sites. | Can also count advertising on your own business website as one of the required advertisements. |
| Duration | Valid for 5 years from approval. | Accreditation stays in effect for the life of the SBS. |
A standard business sponsor needs evidence that the business is lawfully operating and actively trading, along with evidence that it can meet its sponsorship obligations. An accredited sponsor needs the same evidence, plus proof that it meets the characteristics of its accreditation category.
Depending on the category, those characteristics can include a minimum share of Australian workers in your workforce, no adverse monitoring outcomes, written employment contracts for visa holders that meet the National Employment Standards, and pay set by an enterprise agreement or an internal salary table that reflects current market rates.
Meeting the criteria on paper does not guarantee accreditation. A professional review of your records before you apply can save time and help you avoid a refusal. Our employer sponsored visas overview is a good place to start.
Priority processing is the biggest practical difference. Home Affairs gives accredited sponsors priority when it processes 482 and 494 nominations and visa applications.
For your business this can mean less waiting on paperwork, more certainty when you plan recruitment, and a faster path from choosing a candidate to having them start work in Australia.
Priority does not mean every application is decided immediately. Each case is different, and the complexity of your nomination and the worker’s application can still affect timing. Check current processing times on the relevant visa page at Home Affairs, and start with the Home Affairs accredited sponsor page.
Not being accredited is no mark against your business. If it suits your situation, standard business sponsorship is a perfectly workable option.
Neither status lets you stop thinking about compliance once approval is granted. To retain or renew your standard business sponsorship, you must keep meeting your sponsor obligations.
Accreditation is tied to your SBS. It remains in effect throughout the validity of the SBS, and if your current SBS has not ceased when you lodge a new one, you do not need to reapply for accreditation status. Home Affairs also monitors your compliance while you are a sponsor and for up to five years after your sponsorship ends.
Changes to your business structure, recruitment practices or compliance record can all affect your position, so review your circumstances before every renewal rather than assuming past approval carries forward.
SBS gives you a solid foundation for sponsoring overseas workers, and accreditation is a valuable advantage for eligible, established sponsors. The right choice depends on how often you recruit, how strong your systems are, your compliance history and the workforce you expect to need. If your plans include a regional role, our 494 visa page shows how the regional pathway works.
Yes. Home Affairs requires you to be a standard business sponsor first. You then need to meet the characteristics of one of six accreditation categories. You can request accreditation at the time of your sponsorship or renewal application, so many employers consider it as part of their original SBS plan.
An accredited sponsor can sponsor workers on the Skills in Demand visa (subclass 482) and the Skilled Employer Sponsored Regional (Provisional) visa (subclass 494). These are the same visas a standard business sponsor can use. The difference is priority processing of nominations and visa applications for accredited sponsors.
Home Affairs lists the application charge as AUD420. There is no additional fee for becoming an accredited sponsor if you request accreditation at the time of the sponsorship or renewal application. Other charges, such as nomination fees and the Skilling Australians Fund levy, are separate and apply to each nomination.
If you are weighing up accreditation, book a consultation with our team and we will assess where your business stands before you invest time in an application.
Reviewed by a MYAC Migration Agent. This article is general information only and is not migration advice. Speak to a Registered Migration Agent about your circumstances.
