Sponsoring someone to come to Australia can be exciting, whether you are reuniting with family, supporting your partner, or filling a critical role in your business. However, sponsorship comes with significant financial and legal responsibilities.
One of the most common questions prospective sponsors ask is:
“Do I have enough financial capacity to sponsor someone?”
The answer depends on the type of visa and the applicable sponsorship requirements.
This guide explains the financial requirements for sponsors, acceptable sources of funds, sponsorship obligations, and the consequences of non-compliance under Australian immigration law.
Key Takeaways
- Sponsors must demonstrate they have the financial capacity to support the person they are sponsoring, where required under the visa program.
- Financial requirements differ depending on the visa subclass.
- Employers sponsoring overseas workers must pay all sponsorship-related costs, including applicable nomination charges and the Skilling Australians Fund (SAF) levy.
- Sponsors cannot ask sponsored workers to reimburse sponsorship costs.
- Certain family visas require an Assurance of Support (AoS), which involves meeting income requirements and, in some cases, providing a financial bond.
- Failure to comply with sponsorship obligations can result in substantial penalties and restrictions on future sponsorship approvals.
Who Can Become a Sponsor in Australia?
Eligibility requirements vary by visa subclass.
Sponsors may include:
Family Sponsors
An Australian citizen, Australian permanent resident, or eligible New Zealand citizen may sponsor:
- Other eligible family members.
Business Sponsors
Australian businesses may sponsor overseas workers where they:
- Are lawfully operating businesses;
- Have a genuine need for the nominated position;
- Meet sponsorship obligations under migration law; and
- Demonstrate their capacity to employ and support sponsored workers.
Different visa programs impose different financial requirements and sponsorship obligations.
Understanding the Financial Requirements for Sponsors
The Australian Government wants to ensure that sponsors have the means to fulfil their obligations and that sponsored individuals do not become dependent on public funds.
The financial requirements vary depending on the visa subclass.
Minimum Income Requirements
Family Sponsorship
Most family-sponsored visas do not have a prescribed minimum income threshold.
However, sponsors may need to demonstrate that they:
- Have sufficient financial resources;
- Can support themselves and the visa applicant;
- Can meet sponsorship obligations if an Assurance of Support is required.
The Department may consider evidence of employment, savings, assets, and financial commitments when assessing sponsorship arrangements.
Parent Visas and Assurance of Support
Certain parent visas require an Assurance of Support (AoS).
An AoS is a legally enforceable commitment to financially support the visa applicant and repay certain social security payments that may be made during the Assurance of Support period.
To become an assurer, an individual must generally:
- Be at least 18 years of age;
- Be an Australian citizen or resident;
- Demonstrate financial capacity; and
- Provide evidence of income for the current and previous financial years.
For some parent visa categories, a bank guarantee is also required.
Because income is assessed based on individual circumstances, there is no single income threshold that applies to all applicants.
Sources of Acceptable Income
Depending on the visa subclass, acceptable sources of income may include:
- Superannuation income (where applicable); and
- Certain government payments.
Sponsors may be required to provide evidence such as:
- Business activity statements.
The Department and Services Australia may request additional documents to verify financial capacity.
The Role of Assets in Meeting Financial Requirements
Assets may help demonstrate financial capacity, particularly where income alone does not fully reflect a sponsor’s financial position.
Examples include:
- Shares and managed funds;
- Motor vehicles and other significant assets.
Evidence of assets may strengthen an application by showing that the sponsor has sufficient resources to meet their obligations.
Sponsorship Obligations for Skilled Workers
Employers sponsoring overseas workers have important legal obligations.
These obligations continue throughout the sponsorship period and, in some cases, beyond the end of employment.
Providing Equivalent Terms and Conditions of Employment
Sponsored workers must generally receive employment conditions that are no less favourable than those provided to Australian workers performing equivalent work.
This includes:
Employers must comply with Australian workplace laws, including obligations under the Fair Work Act.
Paying Sponsorship Costs
Sponsors must pay all costs associated with becoming an approved sponsor and nominating overseas workers.
These costs may include:
Sponsorship Application Fee
Current fee: AUD 420
Nomination Application Fee
Current fee: AUD 330 for Skills in Demand (SID) nominations.
Employer Nomination Scheme (Subclass 186)
Current nomination fee: AUD 540.
Skilling Australians Fund (SAF) Levy
The SAF levy contributes to the training and upskilling of Australian workers.
The levy depends on the business’s annual turnover and the proposed period of employment.
Businesses with Annual Turnover Under AUD 10 Million
- AUD 1,200 per year (or part thereof) for Skills in Demand visa nominations
- AUD 3,000 one-off payment for Subclass 186 nominations
Businesses with Annual Turnover of AUD 10 Million or More
- AUD 1,800 per year (or part thereof) for Skills in Demand visa nominations
- AUD 5,000 one-off payment for Subclass 186 nominations.
Sponsors cannot Recover Costs from Workers.
Australian immigration law prohibits sponsors from:
- Asking workers to repay sponsorship costs;
- Passing on nomination costs;
- Requiring reimbursement of migration-related expenses associated with sponsorship.
These protections exist to safeguard sponsored workers from exploitation.
Compliance with Anti-Discrimination Laws
Sponsors must not discriminate against workers during recruitment or employment.
Sponsored workers are entitled to the same workplace protections as Australian employees.
This includes protection against:
Consequences of Non-Compliance
Failure to comply with sponsorship obligations can result in significant penalties.
The Department of Home Affairs may impose sanctions, including:
- Cancellation of sponsorship approval;
- Prohibition from sponsoring additional workers;
- Refusal of future sponsorship applications;
- Enforceable undertakings;
- Civil penalties imposed by the courts.
Penalties can be substantial, amounting to tens of thousands of dollars per breach.
Special Considerations for Student Visa Sponsorship
Student visa applicants must generally demonstrate that they have access to sufficient funds to cover:
- Expenses for accompanying family members.
Evidence may include:
- Financial support from parents or partners.
The Department assesses whether the applicant genuinely has access to the funds claimed and may request supporting evidence.
Special Considerations for Family Sponsorship
Certain family visa categories require sponsors or guarantors to demonstrate financial capacity.
Examples include:
- Contributory Parent visas;
- Remaining Relative visas.
Some visas also require a monetary bond under the Assurance of Support arrangements.
The financial requirements vary according to:
- The number of applicants;
- The number of dependent children;
- Existing Assurance of Support commitments;
- Whether there are joint assurers.
How Can CJMigration Assist?
Sponsorship requirements can be complex, and the financial obligations vary significantly across visa categories.
CJMigration can assist by:
- Assessing your eligibility to become a sponsor
- Advising on financial requirements applicable to your visa subclass
- Preparing sponsorship applications and supporting documents
- Advising employers on sponsorship obligations and compliance requirements
- Assisting with Assurance of Support applications
- Advising on sponsorship cost obligations and SAF levy requirements
- Reviewing financial evidence and identifying potential issues before lodgement
- Providing strategic advice for family, employer-sponsored and student visa applications
Our team understands that every sponsorship case is unique. We work closely with our clients to develop practical solutions and provide clear advice throughout the immigration process.
Final Thoughts
Becoming a sponsor in Australia involves more than simply supporting someone’s visa application.
Sponsors may assume significant financial and legal responsibilities, including meeting financial capacity requirements, complying with sponsorship obligations, and understanding the consequences of non-compliance.
Understanding these requirements early can help avoid unnecessary delays, reduce risks, and improve the likelihood of a successful visa outcome.
Obtaining professional migration advice can provide certainty and confidence as you navigate Australia’s sponsorship framework.