494 Business Sponsorship: Can Your Business Sponsor a Regional Worker?

494 Business Sponsorship: Can Your Business Sponsor a Regional Worker?

Subclass 494 guide · Stage 1 of 5

Can your business sponsor a regional worker?

Start with the name that will go on the employment contract. A trading name may appear on the shopfront while a different legal entity runs payroll and employs the worker.

Identify the employer

Put the proposed contract, payslip template, ABN record and any existing sponsorship approval side by side. Check the legal name on each. For a trust, identify the trustee and its capacity. For a franchise, check who owns and operates the particular outlet. Record the actual worksite postcode as well as the registered office.

Choose the sponsorship route

For the Employer Sponsored stream, check whether the business holds current standard business sponsorship approval or needs to apply. Record the expiry date and any change of entity. For the Labour Agreement stream, check which entity is party to the agreement, which occupations it covers and whether it allows 494 nominations. A head office’s approval is a reason to investigate the structure, not permission to use its approval number.

Prepare the evidence

For a first application, gather registration records and evidence of actual trade such as invoices matched to bank deposits, payroll and accounts. Explain any recent restructure or adverse compliance history. Identify who will keep recruitment and payroll records, report relevant changes and deal with requests from Home Affairs. Budget for employer-side charges separately from the worker’s costs.

Example: An Adelaide café changes hands

The café retains its name, menu and staff, but the purchaser creates a new company. Before relying on the former owner’s approval, compare the ABNs, sale documents and contracts. Identify which entity is offering the position and assess its sponsorship status before promising a visa start date.

When the employer or work arrangement changes

Two related companies share staff

A regional clinic company signs the contract, another group company runs payroll and a third business directs the worker day to day. Draw the ownership and control structure, identify the direct employer and record who supervises the duties. Where the proposed arrangement relies on an associated entity, keep company records supporting that relationship. For a placement with an unrelated client, explain who controls the work and check any occupation-specific exception before offering the role.

The nominee owns part of the business

For a company director or shareholder, document how the business decided to create the position, how salary was set and who supervises the work. A sole trader proposing to employ themselves faces a different problem: the same individual would be both parties to the ordinary employment contract. Check the structure before paying nomination charges.

An employer takes on an existing 494 holder

Ask whether family members already hold secondary 494 visas linked to the worker. Record them in the new nomination where required. Keep the old and new approval letters and dates. A change of sponsor, a change of occupation and temporary work during a break in sponsored employment each raise different visa questions. See regulation 2.72C(8)–(9) and the worker’s grant conditions.

Home Affairs sponsor obligations · Migration Regulations 1994

Frequently asked questions

We already sponsor 482 workers. Do we start again?

A current standard business sponsorship can support eligible 494 nominations. Check the approval letter, entity and expiry first. You still need a qualifying regional position and a separate nomination.

Does our new business need a full year of accounts?

Evidence depends on the business. If annual accounts are unavailable, show what has already started through contracts, invoices, bank transactions and payroll. Separate actual trading from forecasts.

How can a worker check the offer?

Ask for the employer’s legal name and ABN and search the ABF sanctions register. Read the action and dates for any match. The register updates monthly, so confirm the offer and nomination directly as well.

The worker never started. What should payroll or HR do?

Record the agreed start date, confirm what happened in writing and notify Home Affairs of the non-commencement within the applicable 28-day period. Keep the notification receipt. Check separately whether the employer can claim a levy refund.

A compliance issue arose at a related business. What should we disclose?

Identify the entity, dates, regulator, outcome and any corrective action. Check the questions about adverse information concerning the sponsor and associated persons. Keep the regulator’s correspondence with the sponsorship file so the circumstances can be assessed.

Official sources

Reviewed 7 November 2026.

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