This is one of the most practical questions in the entire sponsorship process, and it genuinely surprises many employers and candidates once they learn the answer. Some sponsorship costs must legally be paid by the employer, no exceptions. Others can be negotiated. This guide sets out exactly who pays for what, and why.
The Short Answer
As a general rule, the costs directly tied to the business becoming and remaining a sponsor must be paid by the employer, and can never legally be passed on to the worker. The visa application charge itself, however, can legally be paid by either party, and is often negotiated as part of the overall job offer.
The rest of this guide breaks that general rule down into specific, practical detail.
Costs the Employer Must Legally Pay
Australian migration law is specific and strict about this category. The following costs must be borne by the sponsoring business, and requiring the worker to pay them, reimburse them, or accept a reduced salary to offset them, is treated as a serious breach of sponsor obligations.
Standard Business Sponsorship Application Charge
This one off charge, currently 420 Australian dollars, is paid when the business applies to become an approved sponsor. It has nothing to do with any individual worker and is entirely an employer cost.
Nomination Application Charge
This charge, currently 330 Australian dollars, is paid by the employer each time a specific position is nominated. Like the sponsorship charge, this cannot be shifted onto the worker under any arrangement.
The Skilling Australians Fund Levy
This is usually the largest single cost in the entire process, calculated based on the business’s annual turnover and the length of the visa being nominated, generally 1,200 dollars per year for small businesses and 1,800 dollars per year for larger businesses. This levy funds training programs for Australian workers, and the law is unambiguous that it must be paid by the employer alone.
Migration Agent Fees, Where the Employer Engages the Agent
Where the business engages a migration agent to manage its sponsorship and nomination, those fees are generally an employer cost, since the agent is acting on the business’s behalf for that part of the process.
Costs That Are Genuinely Negotiable
Only one major cost category sits in a genuinely negotiable space, and it is worth understanding why.
The Visa Application Charge
Unlike the costs above, the visa application charge itself, currently 4,015 dollars for the main applicant, 4,015 dollars for an adult dependant, and 1,005 dollars for a child dependant, can legally be paid by either the employer or the worker.
In practice, this is often decided as part of the overall job offer negotiation. Some employers cover this cost entirely as a competitive recruitment incentive, particularly for in demand occupations. Others expect the worker to cover it themselves, treating it similarly to a personal cost of relocation. Neither approach breaches any obligation, since the law simply does not mandate who pays this particular charge.
Costs Typically Paid by the Worker
Several costs generally fall to the worker personally, though employers sometimes choose to cover these as part of a generous offer, without any legal requirement to do so.
- Skills assessment fees, paid to the relevant assessing authority for the worker’s occupation.
- English language test fees, where formal testing is required.
- Health examination costs for the worker and any accompanying family members.
- Police clearance and character documentation costs.
- Personal relocation costs, such as flights, temporary accommodation and shipping personal belongings.
None of these are legally required to be paid by the employer, though a business wanting to make a role more attractive to a strong overseas candidate may choose to cover some or all of them as part of the offer.
A Simple Reference Table
| Cost | Who Must Pay |
|---|---|
| Standard Business Sponsorship charge | Employer, always |
| Nomination application charge | Employer, always |
| Skilling Australians Fund levy | Employer, always |
| Visa application charge | Either party, negotiable |
| Skills assessment fees | Typically the worker, though employers can choose to cover this |
| English test fees | Typically the worker, though employers can choose to cover this |
| Health and character checks | Typically the worker, though employers can choose to cover this |
| Migration agent fees for sponsorship and nomination | Employer, if the employer engages the agent |
| Migration agent fees for the worker’s own visa application | Typically the worker, if they engage separate representation |
Why the Law Draws This Line So Clearly
The prohibition on employers recovering sponsorship, nomination and levy costs from workers exists specifically to prevent a genuine risk of worker exploitation. Without this rule, a business could effectively make a sponsored worker fund their own sponsorship, either directly or through a reduced salary, undermining the entire purpose of the salary protections built into the system.
By contrast, the visa application charge is treated differently because it is fundamentally the individual’s own visa application, similar in character to costs like flights or health checks, which is why the law leaves this specific cost open to negotiation between the parties.
What Happens If an Employer Tries to Recover Prohibited Costs
Attempting to recover the Standard Business Sponsorship charge, nomination charge, or Skilling Australians Fund levy from a sponsored worker, in any form, whether directly, through a reduced salary, or through a side agreement, is treated as a serious breach of sponsor obligations.
Consequences can include civil penalties, cancellation of the business’s sponsorship approval, and being barred from sponsoring further overseas workers for a specified period. This applies even where the worker agreed to the arrangement voluntarily, since the prohibition exists to protect workers regardless of individual consent.
How Employers Typically Structure the Visa Application Charge Decision
Since this is the one genuinely negotiable cost, it is worth understanding how employers commonly approach it in practice.
Many employers in competitive, high demand occupations choose to cover the full visa application charge for the worker and any accompanying family members, treating it as part of a genuinely competitive offer. Other employers, particularly for lower salary roles or larger family groups where the total charge becomes significant, expect the worker to cover this cost themselves.
There is no single right answer here, and the correct approach depends on your specific industry, how competitive the role is, and your broader recruitment strategy. What matters most is being clear and upfront about this decision as part of the job offer, rather than leaving it ambiguous until later in the process.
Negotiating Costs as Part of a Job Offer
For employers, being explicit about exactly which costs the business will cover, and which the worker is expected to pay, as part of the initial job offer discussion avoids confusion and potential disappointment later.
For workers, it is worth clarifying this directly during salary negotiations, since a lower salary combined with the employer covering the visa application charge and relocation costs might represent better overall value than a higher salary with no cost support at all.
Putting this in writing as part of the formal offer, rather than relying on a verbal understanding, protects both parties and avoids any confusion about which costs were actually agreed to be covered.
How This Differs Across Visa Types
The general framework described above applies consistently across the Subclass 482 Visa and the Subclass 494 Visa, since both involve the same underlying sponsorship, nomination and visa charge structure.
The Subclass 186 Visa, being a permanent visa, involves a one off Skilling Australians Fund levy payment rather than a per year calculation, but the same fundamental rule applies. The employer cannot recover this levy from the worker, while the visa application charge itself remains open to negotiation.
The Subclass 400 Visa sits outside this framework entirely, since it does not involve Standard Business Sponsorship, a nomination charge, or the Skilling Australians Fund levy at all, meaning the cost picture for that visa is considerably simpler from the outset.
A Worked Example Showing Both Approaches
To make this concrete, consider two employers sponsoring an equivalent worker under a standard four year 482 visa nomination, each taking a different approach to the negotiable costs.
Employer A decides to cover the visa application charge as part of a competitive offer, alongside the mandatory sponsorship, nomination and levy charges it must pay regardless. For a small business with one main applicant, this means the employer absorbs the full 9,565 dollars in government charges, giving the worker a genuinely cost free entry into their new role.
Employer B takes a different approach, covering only the costs it is legally required to pay, being the sponsorship charge, nomination charge and Skilling Australians Fund levy, while expecting the worker to cover their own visa application charge of 4,015 dollars. In this scenario, the employer’s direct cost drops to approximately 5,550 dollars, with the worker independently budgeting for their own visa charge alongside personal costs such as health checks and relocation.
Both approaches are entirely lawful. The right choice for your business depends on how competitive your role is, what similar employers in your industry typically offer, and your own budget and recruitment priorities.
Common Mistakes Around Sponsorship Costs
Many of the disputes and compliance issues we see at Migration Republic stem from a small number of recurring mistakes.
- Employers assuming they can offset the Skilling Australians Fund levy through a slightly lower salary offer, which is not permitted under any circumstances.
- Ambiguity in the job offer about who is covering the visa application charge, leading to confusion or disappointment later.
- Workers assuming the employer is legally required to cover every cost associated with their visa, when several categories genuinely fall to the individual.
- Employers failing to document cost sharing arrangements clearly in the written job offer.
- Assuming a worker’s verbal agreement to cover a prohibited cost makes the arrangement lawful, when it does not.
Expert Tips From Migration Republic
Based on years of experience helping both employers and workers navigate this exact question, a few practical tips consistently make a difference.
Employers should decide their position on the visa application charge before extending a job offer, and state it clearly in writing as part of that offer.
Workers should ask directly and early which specific costs the employer intends to cover, rather than assuming or discovering this partway through the process.
Never agree to any arrangement, however informal, that would see a worker reimburse the employer for the Skilling Australians Fund levy, sponsorship charge or nomination charge.
Where a family is being included in the visa application, factor the additional dependant charges into the cost discussion early, since these can add a meaningful amount to the total.
A Simple Way to Check Eligibility Before You Start
Before committing to any of these costs, it is worth confirming basic eligibility early.
The Subclass 482 Checker tool from Immigration Agent Near Me is a genuinely useful starting point for employers and candidates alike, giving a quick indication of whether a role and candidate profile may be suitable before you invest further time and money into a full application.
How Migration Republic Supports Employers and Workers
At Migration Republic, we help employers structure clear, compliant cost sharing arrangements as part of a job offer, and we help workers understand exactly which costs they are legally responsible for and which are open to negotiation.
We can help you plan a full, accurate cost picture for the Subclass 482 Visa, the Subclass 186 Visa or the Subclass 494 Visa, and ensure your job offer or sponsorship arrangement is genuinely compliant from the outset.
Our detailed cost breakdown guide and our guide to employer sponsorship obligations cover the surrounding detail in full if you want the complete picture beyond who pays for what.
Key Takeaways
- The Standard Business Sponsorship charge, nomination charge and Skilling Australians Fund levy must always be paid by the employer, with no exceptions.
- The visa application charge is the one major cost that can legally be paid by either the employer or the worker, and is often negotiated as part of the job offer.
- Skills assessments, English tests, health checks and personal relocation costs typically fall to the worker, though employers can choose to cover them.
- Attempting to recover a prohibited cost from a worker, in any form, is treated as a serious breach of sponsor obligations.
- Being explicit about cost sharing arrangements in writing, as part of the formal job offer, avoids confusion and protects both parties.
FAQs
Who pays for a sponsored visa in Australia? The employer must pay the Standard Business Sponsorship charge, nomination charge and Skilling Australians Fund levy, while the visa application charge itself can be paid by either the employer or the worker.
Can an employer make the employee pay the Skilling Australians Fund levy? No. This charge must be paid by the employer and can never legally be passed onto the sponsored worker, in any form.
Who typically pays the 482 visa application charge? This is negotiable and varies by employer, though many businesses cover this cost as part of a competitive job offer, particularly for in demand occupations.
Does the employer have to pay for the worker’s skills assessment? No, this typically falls to the worker personally, though some employers choose to cover it as part of the overall recruitment offer.
Can an employer reduce a worker’s salary to cover sponsorship costs? No. Reducing salary to offset prohibited costs, such as the sponsorship charge or the Skilling Australians Fund levy, is treated the same as directly recovering those costs and is not permitted.
Who pays for a worker’s health examination and police checks? These are typically personal costs borne by the worker, though an employer can choose to cover them as part of a generous offer.
Does the cost sharing arrangement need to be in writing? It is not always a strict legal requirement, but putting the arrangement in writing as part of the formal job offer is strongly recommended to avoid confusion or disputes later.
What happens if an employer illegally recovers sponsorship costs from a worker? This is treated as a serious breach of sponsor obligations, which can lead to civil penalties, cancellation of sponsorship approval, and being barred from future sponsorship.
Does the cost split differ between the 482 and 186 visa? The same fundamental rule applies to both, though the Skilling Australians Fund levy is calculated as a one off payment for the 186 visa rather than a per year charge.
Is the Subclass 400 visa cheaper because there are fewer costs to divide? Yes. The Subclass 400 visa does not involve Standard Business Sponsorship, a nomination charge, or the Skilling Australians Fund levy, making its overall cost structure considerably simpler.
Conclusion
Understanding exactly who pays for a sponsored visa comes down to a fairly clear legal line. Sponsorship, nomination and levy costs belong to the employer alone, with no exceptions, while the visa application charge itself remains genuinely open to negotiation between employer and worker, and every other incidental cost sits in a space where clarity and open communication matter more than any fixed rule.
Getting this clarity early, and putting the agreed arrangement in writing as part of the job offer, protects both parties and avoids unnecessary disputes later in the process.
If you need help structuring a compliant, clear cost sharing arrangement for a sponsored role, the team at Migration Republic can help.
We support employers and workers through every stage of employer sponsored visas, including the Subclass 482 Visa, Subclass 186 Visa, Subclass 494 Visa and Subclass 491 Visa, along with practical guidance on skilled migration support and employer sponsorship strategy.
Book a consultation with Migration Republic today and get clarity on exactly who should pay for what in your sponsorship arrangement.
