What are the six accredited sponsor categories and thresholds in Australia in 2026?

Accredited sponsorship in Australia runs on six categories, and each one is defined by hard numbers rather than discretion: a minimum share of Australian workers (75% or 85%, depending on the category), annual turnover of at least AUD4 million for the last two years, an investment of at least AUD50 million, or venture capital funding for a STEM start-up. The thresholds below follow the Australian Department of Home Affairs official page "Accredited sponsor (Subclass Sponsoring skilled workers)" as at July 2026.

What are the six accredited sponsor categories?

The six categories are:

1. Commonwealth, state and territory government agencies
2. Australian Trusted Traders
3. Low volume usage and a high percentage of Australian workers (at least 85%)
4. High volume usage and a medium percentage of Australian workers (at least 75%)
5. Major investment in Australia
6. STEM start-up business in receipt of venture capital funding

You must meet the characteristics of one of these six at the time you apply. Categories 3 to 6 carry the numeric thresholds most employers are checking against; categories 1 and 2 turn on the nature of the entity rather than on turnover.

What does every category have in common?

Two baseline conditions sit underneath all six. First, you must already be a standard business sponsor — accreditation is an addition to that status, not an alternative to it. Second, you must show no adverse monitoring outcomes.

Most categories also repeat the same employment-quality conditions: your Subclass 457, 482 and 494 visa holders are engaged as employees under a written contract that meets the National Employment Standards where they apply, and your employees are paid in accordance with an Enterprise Agreement or an internal salary table that reflects current market salary rates.

For categories 3, 4 and 5, the business structure matters too: you must not be a sole trader or a partnership. That exclusion is not absolute. The Department of Home Affairs may approve accreditation for large partnerships in industries where this is a common business structure and the employer meets the other criteria, with legal and medical practices given as examples. For categories 3 and 4 only, accredited status may also be granted to associated entities of a company that would otherwise meet the requirements, or to businesses that previously met the requirements but no longer do so for technical reasons such as a corporate restructure. Those cases are assessed individually where a partnership requests accreditation and provides a submission requesting special consideration.

How do the six categories compare at a glance?

Category	Australian workforce	Money threshold	Sponsorship and nomination record	Standard business sponsor for
1 Government agencies	At least 75%	—	—	—
2 Australian Trusted Traders	At least 75%	—	—	—
3 Low volume usage	At least 85%	AUD4M annual turnover for the last 2 years	At least 1 approved SID/TSS/457 nomination in 2 years; more than 97% approved in the last year	At least 1 year
4 High volume usage	At least 75%	AUD4M annual turnover for the last 2 years	At least 10 approved SID/TSS/457 nominations in 2 years; more than 97% approved in the last 2 years	At least 2 years
5 Major investment	—	Investment of at least AUD50M that directly generated Australian employment	At least 1 approved primary SID/TSS/457 nomination in the last year; more than 97% approved in the last year	At least 1 year
6 STEM start-up	—	Funding from an Early Stage Venture Capital Limited Partnership in the past 2 years	—	Must be a standard business sponsor

Category 6 lists no workforce percentage, turnover figure or nomination record; it is defined by who the entity is, while category 1 is set at 75% Australian workers.

What are the thresholds for each category?

Category 1: Commonwealth, state and territory government agencies

You should be an Australian government (Commonwealth, state or territory) department or agency. Australian workers make up at least 75% of your workforce in Australia. You have no adverse monitoring outcomes, your Subclass 457, 482 and 494 visa holders are engaged under a written contract that meets the National Employment Standards where they apply, and your employees are paid in accordance with an Enterprise Agreement or an internal salary table reflecting current market salary rates.

Category 2: Australian Trusted Traders

You should be a current Australian Trusted Trader, and Australian workers should make up at least 75% of your workforce in Australia. Two characteristics carry an evidence marker: the written contract of employment for all Skills in Demand (SID), Temporary Skill Shortage (TSS) and/or subclass 457 visa holders meeting the National Employment Standards unless the occupation is exempt, and payment of all Australian employees in accordance with an Enterprise Agreement or an internal salary table reflecting current market salary rates for all occupations in the business. Additional evidentiary documentation must be provided against both.

Category 3: low volume usage, at least 85% Australian workers

This is the only category set at 85%. The full list is:

• Australian workers make up at least 85% of your workforce in Australia
• the Department has approved at least one nomination for a SID, TSS or subclass 457 visa holder in the last two years
• more than 97% of your nomination applications were approved in the last year
• you are not a sole trader or a partnership, subject to the case-by-case exceptions
• annual turnover of at least AUD4M for the last two years
• you have been a standard business sponsor for at least one year
• no adverse monitoring outcomes
• all Australian employees paid in accordance with an Enterprise Agreement or an internal salary table reflecting the current market salary rate
• a written contract of employment for all SID, TSS and/or subclass 457 visa holders that meets the National Employment Standards where they apply

The last two items carry the evidence marker, so additional evidentiary documentation must be provided against them.

Category 4: high volume usage, at least 75% Australian workers

This category trades the higher workforce share for a heavier nomination record:

• Australian workers make up at least 75% of your workforce in Australia
• the Department has approved nominations for at least 10 SID, TSS and/or subclass 457 visa holders in the last two years
• more than 97% of your nomination applications were approved in the last two years
• you are not a sole trader or a partnership, subject to the case-by-case exceptions
• annual turnover of at least AUD4M for the last two years
• you have been a standard business sponsor for at least two years
• no adverse monitoring outcomes
• all employees paid in accordance with an Enterprise Agreement or an internal salary table reflecting the current market salary rate
• a written contract of employment for all SID, TSS and/or subclass 457 visa holders that meets the National Employment Standards where they apply

As in category 3, the final two items require additional evidentiary documentation.

Category 5: major investment in Australia

You should have made a major investment in Australia of at least AUD50M that has directly generated Australian employment. You must not be a sole trader or a partnership (again subject to case-by-case consideration), you must have been a standard business sponsor for at least one year, and you must have nominations approved for at least one primary SID, TSS or subclass 457 visa holder in the last year, with more than 97% of nomination applications approved in the last year. Payment against an Enterprise Agreement or internal salary table, and engagement of visa holders under a compliant written contract, both carry the evidence marker.

The page sets out three ways a major investment can be measured:

• a lasting contribution to Australia, including the value of the investment, the company's pattern of investment, jobs created, export outcomes generated and tax contribution
• innovative business practices or technologies, including introducing new skills and capabilities, setting up research activities in Australia or collaborating with Australian research institutions, and commercial partnerships such as MoUs or joint ventures
• supporting exports and the expansion of Australian industry within global supply chains, particularly in high value-add areas

Category 6: STEM start-up business in receipt of venture capital funding

You should be a start-up business operating in a science, technology, engineering or mathematics-based (STEM) field. Within the past two years you should have received funding from an Early Stage Venture Capital Limited Partnership (ESVCLP). You must be a standard business sponsor, with no adverse monitoring outcomes, your subclass 457, 482 and 494 visa holders engaged under a written contract meeting the National Employment Standards where they apply, and your employees paid in accordance with an Enterprise Agreement or an internal salary table reflecting current market salary rates. No turnover, workforce percentage or nomination record applies here.

Which workforce percentage applies to you?

The 85% figure belongs to category 3 alone. Categories 1, 2 and 4 are all set at 75%, and categories 5 and 6 do not test the workforce at all. If your Australian workforce share is the item you are most confident about, it will usually point you to category 3 or 4 first, and the nomination record then decides which of the two you can actually meet.

Suppose an employer has 88% Australian workers, AUD6M annual turnover for two years, has been a standard business sponsor for 18 months, and has had one nomination approved in the last two years. That employer clears the 85% test, but only 18 months as a sponsor rules out category 4's two-year requirement, so category 3 is the live option. The same employer with 12 approved nominations and two years as a sponsor would be comparing category 3 against category 4 on which approval record it can evidence.

These figures are general reference only and not advice on your particular business; the way a threshold is evidenced can change, so confirm the current published requirements before relying on any single number.

Where does the Department ask for extra evidence?

Categories 2, 3, 4 and 5 carry an evidence marker against specific characteristics — typically the salary arrangement and the written contract conditions — which means additional evidentiary documentation must be provided against them. Categories 1 and 6 list no marked characteristics, although the underlying conditions still have to be met. In practice the marked items are the ones that turn an application into a document exercise rather than a declaration exercise.

What does accreditation give you, and how can it be lost?

As an accredited sponsor you can sponsor someone on a Skills in Demand visa (subclass 482) or a Skilled Employer Sponsored Regional (Provisional) visa (subclass 494), and you receive priority when the associated visa application is processed. You also have the option to provide a character reference for SID visa applicants you have nominated; where they attach a written reference from you confirming they are of good character and have not been convicted of any criminal offences, they are not required to obtain police certificates from countries other than Australia.

Standard Business Sponsorship is valid for five years from the date of approval, and accreditation status remains in effect throughout that period. If your current SBS has not ceased when you lodge for a new SBS agreement period, you do not need to reapply for accreditation status.

Accreditation can be revoked if you stop meeting the required characteristics. It can also be revoked if you gave a character reference for a sponsored employee or their family members and at least one of them has a criminal conviction from a country other than Australia. If accreditation is revoked you remain a standard business sponsor until your sponsorship approval expires, unless the standard business sponsorship is also suspended or cancelled as permitted by law.

Your obligations as an accredited sponsor are the same as those for a standard business sponsor. Failing to meet sponsorship obligations can lead to sanctions, including cancellation of approval as a sponsor, being banned from sponsoring other workers or making future applications, infringement notices, civil penalties imposed by the courts, compliance notices, or an Enforceable Undertaking. More than one sanction can be imposed.

How do you work out which category fits?

Start with the entity, not the numbers. Confirm you are already a standard business sponsor. Check whether you are a government agency or a current Australian Trusted Trader. Then count your Australian workforce share. Then test turnover of AUD4M across the last two years. Then pull your nomination approvals for the relevant one- or two-year window. Then check whether you have been a standard business sponsor for one year or two. Each step removes categories rather than adding them, and the last one standing is the one to evidence.

Frequently Asked Questions

Do I need to be a standard business sponsor before applying?

Yes. Accreditation is an additional status layered onto Standard Business Sponsorship, and the official page lists being a standard business sponsor as the first requirement. Categories 3, 4 and 5 then add minimum periods of one or two years as a sponsor.

Is the 85% Australian workforce rule the standard test?

No. Only category 3 is set at 85%. Categories 1, 2 and 4 require at least 75%, and categories 5 and 6 set no workforce percentage at all. The percentage is a gateway, not a single national rule.

Can a sole trader or partnership become an accredited sponsor?

Categories 3, 4 and 5 state that you must not be a sole trader or a partnership. The Department may still approve large partnerships where that structure is common in the industry and the other criteria are met, with legal and medical practices given as examples, and each such request is assessed individually with a submission.

How long does accreditation last?

Accreditation runs for the period of Standard Business Sponsorship validity, which is five years from the date the Department approves the applicant. If your current SBS has not ceased when you lodge for a new SBS agreement period, you do not need to reapply for accreditation.

What happens if we stop meeting the thresholds?

The Department can revoke your sponsorship accreditation, and you then lose access to the benefits of accredited status while remaining a standard business sponsor until your sponsorship approval expires. Revocation is also possible where a character reference was provided and a relevant person has an overseas criminal conviction.

Is the AUD50M investment figure the only way into category 5?

The AUD50M threshold applies to the major investment route, and the investment must have directly generated Australian employment. The same category also sets out how a major investment can be measured, including lasting contribution to Australia, innovative business practices or technologies, and support for exports and Australian industry in global supply chains.

References

• Department of Home Affairs — Accredited sponsor (Subclass Sponsoring skilled workers)
• Department of Home Affairs — Sponsor responsibilities