494 Visa |Skilled Employer Sponsored Regional Visa

Skilled Employer Sponsored Regional (Provisional) Visa (Subclass 494)

The Department of Home Affairs commenced the Skilled Employer Sponsored Regional (Provisional) Visa (Subclass 494) on 16th November 2019 with a new permanent visa pathway from November 2022. The Skilled Employer Sponsored Regional (Provisional) Visa (Subclass 494) replaces the 187 RSMS visa. The 494 visa will be valid for five years and visa holders must live, study and work in a specified regional area. Additionally, eligible family members can be included in the application. A total of 9,000 places will be allocated to the 494 visa program every year. The 494 visa does not grant immediate permanent residency. You can, however, apply for the Skilled Regional Permanent Residency Visa (Subclass 191) once you meet certain eligibility criteria.

What are the requirements for the 494 Visa?

The 494 Visa application process is made up of three important stages:

1. Sponsorship by the employer

To sponsor someone for the 494 visa, the business must first apply and be approved as a sponsor or have a labour agreement in place. In order to, obtain sponsorship approval, the business must:

be actively and lawfully operating (whether in or outside of Australia)
if in Australia, has a commitment to employing local labour and engaging in non-discriminatory recruitment practices
have no relevant adverse information against the business, or it is reasonable to disregard this information
agree to comply with sponsorship obligations throughout the life of its sponsorship

Sponsorships for start-up and overseas businesses are generally valid for 18 months and 5 years for established businesses in Australia. The business can sponsor overseas workers for the duration of their sponsorship.

If your standard business sponsor has been approved, then you can apply for accredited status. An accredited sponsor will receive priority when the DHA processes their 482 or 494 Visa nominations and visa applications.

2. Nomination by the employer

To nominate a position under the Skilled Employer Sponsored Regional (Provisional) Visa (494 Visa) the employer must:

nominate the overseas worker in an occupation from the relevant Skilled Occupations List
prove that there is a genuine need for a full-time position to be filled within the business
the base salary offered is not less than the Temporary Skilled Migration Income Threshold (TSMIT) which is currently A$70,000 per annum as of July 1, 2023
the nominee must be paid market rate for the role
the terms of employment are no less favourable than those that would apply to an equivalent Australian worker
if the occupation is not exempt, labour market testing has been undertaken for the nominated position
Contribute to the Skilling Australians Fund (SAF) levy. A business with a turnover less than $10 million has to pay $3,000 per nomination per year for a SESR visa. A large business with a turnover of more than $10 million will pay $5,000 per nominee per year.

3. Visa application

To apply for a visa under the Skilled Employer Sponsored Regional (Provisional) Visa (Subclass 494), the applicant must meet the requirements under either the employer sponsored stream or the labour agreement stream.

Employer sponsored stream, applicant must:

be under 45 years of age at the time of application
be nominated by an approved sponsor
have an employer who is willing to offer you a permanent position in a skilled occupation on the applicable occupation list
have a valid skills assessment in your occupation, unless exempt
have three years relevant employment experience in your nominated occupation
meet registration and licensing requirements
have competent English unless exempt
meet health and character requirements

Labour Agreement Stream, applicant must:

be under 45 years of age at the time of application, unless the labour agreement states otherwise
work only for your sponsor
have an employer who is willing to offer you a permanent position in an occupation specified in the work agreement
have a relevant skills assessment for your occupation, if this is specified in the labour agreement
have three years relevant employment experience in your nominated occupation
may be required to demonstrate that you have the necessary skills to perform tasks in your nominated occupation
have the necessary English language skills suitable for your occupation
meet health and character requirements

What obligations do you have to meet if granted the 494 Visa?

If you are granted the 494 Visa, you need to meet the following obligations:

live, work and study in the designated regional area for at least three years.

If you do not comply with the conditions of your visa:

your visa and those of any accompanying family members may be cancelled
you will not be able to apply for the Permanent Residence Skilled Regional Visa (Subclass 191)

What are the costs associated with applying for the 494 Visa?

We have outlined the fees that are most likely to be incurred in Australian Dollars. Fees can increase without notice, so the fees can vary at the time of application.

Department of Home Affairs (DHA) Visa Application fees – $ 4,640 (for primary applicant), $2,320 (for each secondary applicant over 18), $1,160 (for each secondary applicant under 18)
Skilling Australians Fund (SAF) Levy – $3000 per nomination per year (for businesses with annual turnover less than $10 million) or $5000 per nomination per year (businesses with annual turnover over $10 million)
Skills Assessment Application fees – $300 to $1,200 for most occupations
IELTS or PTE Academic – IELTS $410 + $41 (GST if applicable) or PTE $445
Medical Examination fees – as applicable
Police Clearance Certificate – $45 per person (average)
Regional certifying body fees – may be applicable
Translations/Certifications – as applicable
Credit card processing fees for DHA – as applicable

How long will the 494 Visa process take?

There are a range of different factors that determines how long it takes for the 494 Visa to be granted. The skills assessment application process can take 10 days to a few months depending on the skills assessing authority. For current visa processing times please refer to the information on the Department of Home Affairs website.

What are the benefits of the 494 Visa?

The 494 Visa allows you and your dependents to:

temporarily live, study and work in a designated regional area in Australia
travel in and out of Australia while the visa is valid
apply for permanent residence through the Permanent Residence Skilled Regional Visa (Subclass 191) after certain conditions have been met.