Work permits and visas in Australia

Australia’s strong economy and high quality of life make it a magnet for global talent. Industries from technology to healthcare face skill shortages, so many Australian companies are looking abroad to fill key roles.

However, employers must be vigilant about immigration rules. Hiring a foreign worker without proper authorization can trigger serious penalties – from hefty fines (for example, up to A$82,500 and beyond) to bans on sponsoring overseas staff.

This guide explains Australia’s appeal for migrants and, for employers, the crucial visa and work permit requirements. We’ll cover who needs a visa, the main visa categories employers use, eligibility rules and sponsor obligations, plus practical steps for hiring and compliance.

By understanding these rules, you’ll help your overseas recruits integrate smoothly and keep your business compliant with Australia’s laws.

Who Needs a Visa or Work Permit in Australia

Australian citizens can work anywhere in Australia without restriction, even if they currently live abroad. Permanent residents (holders of a permanent resident visa) likewise have full work rights.

Citizens of New Zealand enjoy special treatment under the Trans-Tasman arrangement: they hold a permanent Special Category visa (subclass 444) and can live and work in Australia indefinitely without applying for a separate visa.

Any other national – whether on a temporary tourist visa or having no Australian visa – must obtain a valid work visa (often called a work permit) before starting employment. In practice, employers need to confirm a candidate’s work eligibility status.

If the person is not an Australian/NZ citizen or permanent resident, they’ll need the appropriate Australian visa that allows employment. Employers should not assume that a short-term visa (like a tourist visa) automatically includes work rights – many do not.

In short, for your new hire: no visa is needed only if they are an Australian/New Zealand citizen or a permanent resident. All others require a specific work visa tailored to their role and background.

Ensuring each employee has the correct visa is vital: illegal employment carries stiff sanctions, so always verify eligibility before hiring.

Overview of Australian Work Visa Types Relevant to Employers

Australia offers many visa pathways, but a handful are most relevant for hiring or relocating staff. Below is an overview of key visa categories employers and prospective employees commonly use:

Temporary Skill Shortage Visa (Subclass 482)

This is a temporary visa (up to 2-4 years, depending on stream) that allows an employer to sponsor a skilled worker when no suitable Australian is available. The 482 visa has different streams (short-term and medium/long-term) based on occupation lists and leads to work rights in Australia.

An employer must first become a Standard Business Sponsor and nominate the position. The worker can then apply for the 482 visa once nominated by the approved sponsor. (Later sections cover 482 in detail.)

Employer Nomination Scheme Visa (Subclass 186)

The ENS 186 is a permanent residency visa for skilled workers who are nominated by an Australian employer. It has three streams: Direct Entry (for those applying from outside or without prior work experience in Australia), Labour Agreement (if the employer has a negotiated agreement), and Temporary Residence Transition (for 482/457 visa holders who have already worked for the nominating employer for ≥3 years).

The employee eventually becomes an Australian permanent resident if approved.

Skilled Independent Visa (Subclass 189)

This is a points-tested permanent visa for skilled professionals who are not sponsored by an employer. An individual must submit an Expression of Interest and be invited to apply.

The job/occupation must be on Australia’s skilled occupation list. Recipients work anywhere in Australia and obtain PR.

Unlike sponsored visas, employers do not nominate the 189 applicant – the applicant self-nominates via the points system and must meet criteria like age (usually under 45) and English proficiency.

Global Talent/National Innovation Visas

Australia’s Global Talent program (formerly the Global Talent Independent (GTI) visa) is now replaced by the National Innovation visa (subclass 858) as of Dec 6, 2024. This invitation-only visa targets exceptionally talented individuals in fields like tech, science, and arts.

Applicants must lodge an Expression of Interest demonstrating world-leading achievements, and be invited by the government. The NIV provides permanent residency and is not employer-nominated (though there is a related “Global Talent Employer Sponsored” stream for niche hires).

In practice, this visa is for rare high achievers, but employers can keep it in mind if recruiting eminent experts.

Training Visa (Subclass 407)

This short-term visa (up to 2 years) allows overseas workers to come to Australia for structured workplace training or professional development. For example, an international employee might come under 407 to train on new equipment or processes.

Employers must be an approved Temporary Activities sponsor and provide a detailed training plan. The visa is limited to the training program – holders cannot engage in unrelated work outside the plan.

Business Innovation and Investment Visas

These (like subclasses 188/888) are designed for entrepreneurs, investors and business owners rather than typical employees. The provisional 188 visa allowed wealthy applicants to establish a business or invest in Australia, with the 888 permanent visa as a follow-up.

Recent changes (effective late 2024) replaced much of the old Business Innovation program with the National Innovation visa (subclass 858). In short, these visas aren’t commonly used for regular employee hiring, but a tech entrepreneur or investor you recruit might come under such a program.

Working Holiday Visas (Subclass 417 and 462)

These are temporary visas (usually 12 months, extendable by undertaking specified work) available to young visitors from eligible countries. They allow holders to work in Australia to supplement their travel.

Employers can hire working holiday makers (for example, university students or backpackers). It’s important to note that these visas were traditionally limited to 6 months’ work with any one employer.

As of January 2024, that limit has been eased in many industries (e.g., hospitality, agriculture, health, etc.). Still, working holiday staff are usually casual/part-time and may have restrictions in their visa conditions.

Employers should verify the country-specific visa (417 or 462) and ensure the job duration complies with visa rules.

In addition to the above, Australia has various regional visas (e.g., 491, 494, 187) for workers who commit to live in non-metropolitan areas, and other specialist programs. But the visas listed here cover the main routes employers use to bring foreign talent to Australian workplaces.

Eligibility Criteria and Employer Responsibilities by Visa Type

Each visa type has specific requirements for the employee and obligations for the employer. Below we summarize the key criteria and what employers must do for each major visa:

Temporary Skill Shortage (TSS) Visa – Subclass 482

The employee must have skills, qualifications and experience suitable for the nominated occupation, which must appear on Australia’s skilled occupation lists (Short-term or Medium/Long-term). They usually need a positive skills assessment and competent English.

The employer must first become an approved Standard Business Sponsor (submitting an application via ImmiAccount) and then nominate the position for that employee. The job must be genuine full-time work and the employee must be paid at least the market salary rate for that role.

Employers must also satisfy the Australian Government’s training requirement: pay the Skilling Australians Fund (SAF) levy (currently A$3,000–5,000 per year of visa, depending on business size) to invest in local training. As a sponsor, the company must abide by strict obligations: it must keep employment records, ensure the worker only does duties related to the nominated occupation, and cooperate with any inspections.

Crucially, the employer must pay the foreign employee the market salary rate they were nominated for (including all benefits). The employer cannot charge the worker for visa costs, recruitment fees or training levy – those must be covered by the company.

The employer must also reimburse reasonable travel costs if the worker or family must leave Australia. In short, sponsoring a 482 visa means a binding commitment: the employer must uphold the employment contract in line with Australian workplace laws and notify authorities of any significant changes (like the visa holder leaving the job).

Employer Nomination Scheme (ENS) Visa – Subclass 186

The employee needs skills, qualifications and experience matching an occupation on the relevant list (usually Medium & Long-Term Skilled Occupation List) and must generally be under 45 years old (some exceptions apply). For the Direct Entry stream, they can apply from overseas or Australia without previous local work.

For the Temporary Residence Transition (TRT) stream, they must have worked for the nominating employer on a 482/457 visa for at least 3 years. The employer must lodge a nomination as for the 482: register on ImmiAccount and submit a nomination application.

The employer needs to demonstrate the business is active and law-abiding, that employing this person is a genuine need, and that the salary offered is at least the Australian market level for the position. Once nominated and approved, the worker applies for the 186 visa.

After the visa is granted, the employee becomes a permanent resident. Employer obligations during the nomination process mirror those for 482: fair salary, lawful business operations, and a genuine full-time job position.

Note that unlike 482, the SAF levy is not required for ENS nominations (since the visa is permanent), but the employer must pay the nomination fee and meet all usual sponsorship obligations once the employee is on the visa.

Skilled Independent (Subclass 189)

This visa is the employee’s own application, so no employer sponsorship is involved. The candidate must score enough points (≥65) on factors like age, English proficiency, work experience and education, and receive an invitation to apply.

Occupations must be on the skilled list, and most applicants are under 45 and have competent English. There is no requirement for an employer, but from an employer’s perspective, knowing a candidate holds or will likely get a 189 visa is ideal: the person can work immediately on arrival with no visa conditions tying them to your company.

National Innovation / Global Talent (Subclass 858)

For these invitation-only visas, the candidate must be an internationally recognized leader or high achiever in certain fields (science, tech, arts, etc.). They lodge an Expression of Interest and, if invited, apply directly.

The employer’s role is minimal: you might encourage a key hire to apply, but you do not nominate or sponsor them in the usual way. In fact, the National Innovation visa replaced both the old Global Talent Independent visa and the Business Innovation investment visa.

If your candidate is in this category, the employer’s responsibility is simply to support their application (e.g., providing job details) but the visa itself grants full work rights independently.

Training Visa (Subclass 407)

The employee must be engaged in a genuine training program related to their occupation. Typically they are overseas workers coming to Australia temporarily to meet professional licensing requirements or gain new skills.

The employer (or another approved training provider) must act as a Temporary Activities Sponsor. This involves applying to be an approved sponsor and then nominating the trainee and the specific training.

The employer must outline a structured training plan. Once the 407 visa is granted, the trainee can stay in Australia (generally up to 2 years) for that training.

Importantly, the visa is subject to Condition 8102, which forbids the holder from doing any work outside the specified training program. The employer must ensure the trainee only performs the outlined activities and provides any required support, but normal employment taxes and workplace laws still apply if the training involves paid work activities.

Business Innovation and Investment Visas

As of late 2024, this pathway has largely shifted into the National Innovation visa. Previously, subclasses 188/888 were for business owners/investors.

For completeness: the employee (who is actually an entrepreneur) had to meet high asset and turnover thresholds to qualify for provisional 188, then 888 for permanency. The employer (state government) needed to nominate them.

Today, employers rarely deal with this for regular hires. If you are recruiting someone who is essentially coming to start or invest in a business, check whether the new NIV might apply.

Otherwise, just be aware these visas exist but don’t involve normal employer sponsorship or obligations.

Working Holiday Visas (Subclasses 417 and 462)

The employee is usually a young adult (typically 18–30 years old) from an eligible country on a working holiday/travel visa. They can work in Australia on a short-term basis (up to 12 months).

Employers can hire working holiday visa holders like any casual worker, provided the job is legal and the employee is paid at least the Australian minimum wage or Award rate. The employer’s responsibility is mainly to follow Fair Work rules and ensure the worker’s visa conditions are met.

Traditionally, WH visa holders were limited to 6 months with one employer, but from January 2024 this restriction has been relaxed in many industries (e.g., agriculture, health, hospitality). If you plan to employ someone on a working holiday visa, confirm the specific visa subclass and compliance with any work limits.

Also, keep in mind these visas do not lead to permanent residency and are intended to supplement travels, not long-term employment.

In all cases, the employer must also ensure the visa holder meets health and character requirements, and must not employ anyone in breach of Australian law. Many visa types require that the worker genuinely intends to stay temporarily (except PR visas) and has necessary health insurance if required.

Employers should keep copies of visa grant notices or use the Visa Entitlement Verification Online (VEVO) system to confirm an employee’s work rights. By understanding each visa’s criteria, you’ll know exactly what qualifications the candidate needs and what paperwork you must complete.

Step-by-Step Guide to Hiring or Relocating a Foreign Worker to Australia

1. Determine the Right Visa Type

Based on the role, skill level, and candidate profile, decide which visa category fits. For example, a skilled professional with an in-demand occupation might use the 482 or 186 visa; an engineer might apply on a 189 points visa; a trainee would use a 407; etc.

Check the Australian Department of Home Affairs (DHA) lists to see if the position is on a skilled occupations list, and review age, English and experience requirements for each visa.

2. Obtain Sponsorship Approval (if needed)

If the visa requires an employer sponsor (such as 482 or 186), register your business for sponsorship through ImmiAccount. You will apply to become a Standard Business Sponsor with DHA.

This involves providing company details, labor market testing evidence (advertising the role locally), and paying a sponsorship fee. Only after DHA approves your business as a sponsor can you nominate a specific role and person.

3. Nominate the Position and Employee

Using ImmiAccount, lodge a nomination application for the specific job and foreign candidate. You must outline the job title, duties, salary (at or above the market rate), and explain why an Australian could not fill this role.

You also pay a nomination fee. DHA assesses the nomination on criteria like lawfulness of business, genuine need, and salary adequacy. Once the nomination is approved, the visa application process can proceed.

4. Employee Lodges the Visa Application

The overseas candidate submits their visa application online through ImmiAccount, including identity documents, skills assessments, health exams, and proof of the nomination (if required). For employer-sponsored visas, they must usually apply within a set time after nomination.

For non-sponsored visas (like 189 or 858), the individual lodges it themselves, often after receiving an invitation. Monitor processing times and provide any requested DHA information promptly.

5. Receive Visa Grant and Finalize Work Arrangements

Once the visa is granted, you should obtain a copy of the visa grant notice or check the employee’s entitlement via VEVO. Notify your HR and payroll teams about the start date, salary, superannuation, and tax requirements for the new hire.

If the employee is relocating from overseas, coordinate with them on relocation logistics: assist with accommodation, opening bank accounts, setting up tax and health insurance, and any orientation needed.

Prepare an employment contract that reflects Australian workplace laws and the visa conditions (for example, pay rate, role duties, location).

6. Onboard the Employee

On or before the first day, ensure all paperwork is complete: have the employee complete tax (TFN) forms, superannuation choice forms, and provide any company policies. Bring them into the team, arrange necessary equipment and logins, and help them settle in.

We cover relocation and cultural integration best practices in a later section below. Each step must be done carefully. Keep copies of all visa and sponsorship applications, receipts, and correspondence with DHA.

If the process seems complex, consider consulting an immigration advisor or using services like Rivermate (see Conclusion). The key is to start early: visa processing can take weeks or months, so initiate the sponsorship and application well in advance of the employee’s intended start date.

Employer Compliance and Legal Obligations

Hiring a foreign employee means complying with both immigration law and employment law. Under Australian law, employers must adhere to all workplace regulations (Fair Work Act, anti-discrimination law, etc.) and also meet immigration sponsorship obligations.

Some of the most important obligations include:

Pay and Conditions

Ensure the overseas worker receives the same wages and entitlements as an Australian doing the same job. As the Fair Work Ombudsman emphasizes, sponsors must provide “equivalent pay to that of any Australian employee who has the same occupation” in the workplace.

Pay rates must comply with applicable Awards or agreements, and the contract terms must match what was nominated to immigration (e.g., hours, duties, location).

No Cost-Shifting

By law, the employer cannot pass on certain costs to the employee. The sponsor must pay its own sponsorship and nomination fees, and the mandatory SAF training levy.

Employers must not make the visa applicant cover these costs or agency fees. The Fair Work rules specifically prohibit requiring the employee to pay for migration agent costs or sponsorship costs.

Accurate Record-Keeping

Keep detailed records of the visa holder’s employment – hours worked, pay, and any changes to their job. Sponsors must be ready to provide documentation to the Department of Home Affairs if audited.

Any change in the worker’s circumstances (like they stop working for you, change roles, or salary) must be reported to DHA within stipulated timeframes. Cooperating with inspectors and auditors is mandatory.

Monitoring Work Authorization

Ensure the employee is only working in the role and location authorized by their visa. They must not take on additional jobs unless their visa allows it.

The employer should verify that the visa holder is not working illegally for another company.

Training Commitment

For 482 visas, paying the SAF levy is a formal obligation, supporting the training of local Australians. Also, sponsors are expected to help upskill Australian staff under a “workforce development requirement”.

Fair Work Compliance

As with any hire, employers must meet minimum standards under the Fair Work Act: award wages, superannuation contributions, leave entitlements, and safe working conditions. Visa holders have the same workplace rights as other employees, and employers must not exploit their immigration status.

Visa-Specific Conditions

If the visa has particular conditions (for example, a 482 visa holder must work only in the nominated occupation, a 407 trainee must follow the training plan), the employer should enforce them. For example, a 407 sponsor must ensure the trainee is receiving the intended training and not performing unrelated tasks.

Failure to meet these obligations can trigger serious sanctions. The Australian Border Force (ABF) can impose fines (as noted, up to A$82,500 or more per breach) and revoke sponsorship approvals.

Repeat violations can lead to bans on sponsoring foreign employees. The Fair Work Ombudsman can also take action for wage breaches or unfair treatment, regardless of immigration status.

In short, compliance is not optional: it protects both the worker’s rights and your company’s ability to operate.

Common Challenges and Solutions for Hiring Internationally

Navigating Complexity

One major challenge is the complexity of immigration laws. Australia’s visa rules change regularly and vary by occupation and region. It can be hard for busy employers to stay current.

Solution: Plan well in advance. Consult official DHA guidance (or an immigration expert) for each case. Use checklists to ensure all requirements are met for the visa subclass.

As one employer’s guide notes, many companies choose to work with an employer-of-record or immigration specialist to handle the nuances of global hiring while staying compliant.

Time and Costs

Visa applications (especially permanent ones) can take months, and fees for sponsorship, nomination and visas add up. Solution: Factor these timelines and costs into your hiring plan.

Begin the visa process well before the start date. Budget for levies and agency fees.

Where possible, retain the same visa applicant through to permanent residency (e.g., using 482 then 186) to avoid repeat fees.

Labor Market Requirements

Some visas (like 482 and 186) require labor market testing – proving you couldn’t find an Australian for the job. This means advertising the role locally and documenting it.

Solution: Build time for advertising into your process, and keep evidence (ads, interview notes) showing your genuine recruitment efforts. Hiring managers should coordinate with HR early to manage this step.

Cultural and Language Differences

A foreign recruit may face a steep adjustment to Australian work culture, language slang or business practices. Misunderstandings can cause friction.

Solution: Provide cultural onboarding (see next section). Pair the new hire with a mentor or buddy who can help explain customs and company norms.

Encourage open communication and patience as both sides learn.

Administrative Burden

Payroll for international hires can be tricky (e.g., tax withholding, superannuation, banks). Solution: Use a payroll service or global HR platform that handles international onboarding.

Have local HR or accountants ready to advise on tax registrations and super. The Rippling guide stresses getting “paperwork sorted early” so the employee isn’t caught off-guard by unfamiliar financial or tax procedures.

Risk of Misclassification

Employers sometimes try to shortcut by hiring international workers as “contractors” or freelance to avoid sponsor duties. This is risky: misclassification can lead to large fines or back-payment of wages.

Solution: Be honest about the employment relationship. If you control the person’s work and they fit an employee profile, hire them on a visa and as an employee.

If a contractor model truly applies, engage them properly as a contractor without granting Australian work authorization. Misclassification was warned to cost employers “expensive and time-consuming” consequences if challenged.

Changes in Laws

Australia periodically updates its immigration and labor rules (for example, the 6-month restriction on Working Holiday visas was eased in 2024, and new visa programs like the NIV were introduced). Solution: Check the Department of Home Affairs website regularly for updates.

If an existing hire’s visa category becomes obsolete or a new route opens, explore transitioning them. For example, a worker on a soon-to-expire 457 visa might shift to a 482 or 186 if eligible.

Unexpected Visa Refusals or Delays

A refused visa can derail a hiring plan. Solution: Maintain alternate candidates or interim arrangements. Never allow someone to start work without visa grant.

If a visa is refused, carefully review the reasons and consider reapplication or a different visa pathway.

By anticipating these challenges and using resources wisely (legal advice, EORs, global HR tools, government guidance), employers can smooth the way. Many companies find that outsourcing complex compliance to a specialist (like an EOR service) reduces risk.

The key is diligence: every foreign hire is a two-way trust, and doing it right is in everyone’s interest.

Best Practices for Relocating and Onboarding Foreign Employees in Australia

Once the visa is granted and the hire is made, thoughtful relocation and onboarding can make a big difference. Here are some best practices to help your new international employee settle in and become productive:

Visa and Immigration Support

Assist the employee with any remaining visa formalities. Ensure they receive an official letter confirming sponsorship or employment for visa purposes.

Be available to answer questions about visa conditions (e.g., how long they can stay, renewal options). Making the visa process smooth will reduce their anxiety and speed up their arrival.

Accommodation Assistance

A practical challenge for many expats is housing. Offer relocation support such as temporary company housing, housing stipends, or help with rental searches.

Even simple guidance on renting (explaining bonds, lease terms, neighborhoods) is valuable. As relocation experts advise, “finding suitable housing is crucial” – offering accommodation or assisting with rentals “ensures [they] have a comfortable place from day one”.

Welcome Package and Orientation

Prepare a welcome kit with information about the office, company culture, public transport, local amenities, and any Australian welcome items (maps, transit cards, local SIM card, etc.). Schedule an orientation program tailored for international hires.

This could include a tour of the workplace, introductions to the team, and an overview of Australian workplace norms. The goal is to help them “understand Australian work culture and introduce them to their new team” from the outset.

Clarify communication styles and expectations early: for example, some cultures prefer formal emails while Australians often use direct chat tools. Making these norms explicit helps the new hire integrate smoothly.

Paperwork and Financial Setup

Complete all employment paperwork before the first day. International employees may not be familiar with local tax and superannuation requirements.

Provide guidance (or resources) on applying for a Tax File Number (TFN), choosing a super fund, and how Australian payroll works. Experts note the importance of sorting contracts, tax forms and benefits before day one.

You might even arrange a meeting with your payroll or HR team to walk them through pay dates, payslips, and how to set up bank accounts for salary payment.

Set Up Banking and Healthcare

Help the employee open a local bank account and explain how salary, taxes and superannuation will be handled. For long-term employees, explain the Australian healthcare system (Medicare), insurance obligations, and any waiting periods.

Point them to relevant resources. One practical tip is to assist with banking and financial services: setting up accounts and understanding taxes can greatly ease their transition.

Language and Communication

If English is not their first language, ensure work communications are clear. Encourage colleagues to speak slowly and avoid slang initially.

Provide resources or training if needed (e.g., workplace English classes). Clear communication fosters confidence and productivity.

Cultural Sensitivity

Encourage the team to be culturally aware. Celebrate the new employee’s background – for example, allow a brief introduction of their home culture in a team meeting or a potluck lunch.

Small gestures (greeting them in their language, wishing them a happy home holiday) build goodwill. While learning about Australia, also embrace their perspectives as an asset to the workplace.

Onboarding Tasks

As with any hire, set clear job expectations and goals. Provide training on any proprietary systems or tools. For remote compliance, the Rippling guide suggests making sure new hires “have access to everything they need from day one,” including tech and communication tools.

Assign a mentor or buddy in the team to help answer day-to-day questions. Regular check-ins during the first few weeks can identify issues early and show support.

Feedback and Inclusion

After a few weeks, ask for feedback on the relocation process and integration. Is there any paperwork confusion? Are they settling into the team?

Use this feedback to improve your process. Keep them engaged by involving them in meetings and projects early, so they feel valued.

By proactively managing these relocation and onboarding steps, you not only help the employee adjust but also demonstrate respect and investment in your international staff. A smooth transition builds loyalty and sets the stage for long-term retention.

Conclusion

Australia offers fantastic opportunities for global talent, but hiring internationally requires careful planning and compliance. In this guide we saw that employers must distinguish between citizens, permanent residents and foreign nationals, and be familiar with visas like the Temporary Skill Shortage (482), Employer Nomination Scheme (186), Skilled Independent (189), Global Talent/Innovation (858), Training (407), and others.

Each visa has its own eligibility criteria and employer obligations – from paying training levies to maintaining sponsorship records. We outlined the step-by-step process for bringing someone on board and highlighted ongoing compliance duties under immigration and workplace law.

Common challenges – such as complex paperwork, changing regulations and cultural differences – can be managed through early preparation and, in many cases, assistance from experts. Likewise, best practices in relocation and onboarding (like visa support, housing help and thorough orientation) can greatly improve the employee’s integration into your company.

If your company is navigating visas or work permits in Australia, don’t go it alone. For expert support with sponsorship, visa applications and compliance, consider contacting Rivermate.