How to Hire International Employees in Australia

Hiring international employees in Australia involves more than just a simple job offer. There are sponsorships and visas to sort, and very specific legal obligations to meet. This guide will explore the full hiring process, including how to bring someone into the country for work and sourcing talent remotely.

We’ll also introduce Wise Business as a way to pay employees working overseas.

Factors to consider when hiring an international employee in Australia

Before hiring someone from abroad, it’s vital to understand the legal and practical responsibilities that come with it. There’s much more to consider compared to hiring locally in Australia.

Legal

You can’t hire an overseas worker and then figure out the paperwork later on. You need to get everything sorted legally first. Ideally, you should begin preparing months before any intended start date.

The legal requirements include:

• Work visas - International employees need a relevant visa to work in Australia legally.
• Employer sponsorship: To nominate an overseas employee, you must become an approved sponsor with the Department of Home Affairs¹.
• Skills assessments - Formal qualification assessments might be required for specific job roles before visa approvals.
• Ongoing compliance - Hiring overseas brings new compliance requirements. You’ll need to report any employment changes, monitor visa conditions during a worker’s employment, and maintain records to demonstrate compliance.
• Penalty risks - Hiring overseas adds legal risk, with non-compliance often leading to fines and loss of sponsorship privileges.
• Fair Work Act⁴ - International employees have the same work rights and entitlements as Australian citizens, such as annual leave and superannuation.

Labour market testing

Unfortunately, you can’t just decide to hire someone from overseas on the spot. You must demonstrate first that you’ve made a genuine effort to fill the position with workers in Australia (citizens or permanent residents). This is known as labour market testing² and involves advertising the position for 4+ weeks on platforms like jobsearch.gov.au.

You’ll also have to keep detailed records of the application and selection of employees throughout the entire process.

Financial

There are very specific costs involved with hiring international employees. Many of them are upfront. These include visa fees, legal costs, and relocation expenses. The salary you offer needs to meet a minimum threshold⁵ and be considered a “fair” rate in Australia.

Cultural and practical

Bringing a worker from overseas creates practical challenges, too. You should be aiming to:

• Support their transition to the Australian workplace culture.
• Offer practical settlement support like sorting accommodation and creating bank accounts, etc.
• Consider time zone coordination and collaboration if you are hiring remotely

How do Australian companies hire an international employee?

Global talent can bring fresh thinking and new energy to your team. However, significant legal and practical steps are involved when hiring from abroad. Here’s how to navigate the process:

Step 1. Identify the right visa

As an employer, you must sponsor a relevant visa to enable the employee to work in Australia. Several visa categories are typically used to hire international employees. These include:

• Skills in Demand visa ⁶
• Employer Nomination Scheme visa ⁷
• Regional Sponsored Migration Scheme visa ⁸

The aim is to select the most appropriate visa for the role. You’ll also need to be an approved sponsor with the Australian government to complete the legal process

Step 2. Apply to become an approved sponsor

To nominate an employee and complete the legal process, you’ll need to apply to become an approved sponsor with the Australian government. There are three types of sponsors: Standard Business, Accredited, and Temporary Activity.

Standard Business is the most common, and is required for both the skills in demand and sponsored regional visas.

Becoming an approved sponsor can be a lengthy process with lots of documentation — processing times can take 1 to 4 months. There are also quite a few sponsorship obligations you should be fully aware of before starting the process.⁹

Here’s a quick step-by-step guide for what to expect:

1. Create an ImmiAccount
2. Complete the relevant sponsorship form
3. Upload and attach supporting documents, including:
   1. Financial statements
   2. Business registration documents (Australian Business Number etc.)
   3. Tax and superannuation compliance records
4. Pay the sponsorship fee (420 AUD for Standard Business)
5. Take a note of the Transaction Reference Number (TRN)

3. Nominate the position

After officially becoming a sponsor, you’re in a position to nominate a specific person for a specific job.

• Define the job with a detailed position description and occupation code from the skilled list. Make sure the salary meets the minimum thresholds, too.
• Prove labour market testing with evidence that you’ve advertised the job in Australia for at least 4 weeks.
• Justify a business need by explaining why the role requires overseas talent.
• Nominate the exact candidate, highlighting relevant skills and qualifications.
• Submit supporting documents such as an employment contract.

4. Give go-ahead for employee to apply for visa

Once the nomination has been lodged, the employee can submit their own visa application. The processing time for this varies, but it typically takes 2 to 4 months. Both the nomination and employee visa applications can run at the same time. However, your nomination must be approved first before a visa is given the green light.

5. Set up contracts and onboarding

The final step is to prepare employment contracts that comply with laws in Australia. Also, make sure you’re all set up for payroll obligations, including tax and superannuation.

Can Australian companies hire an international employee remotely?

Yes, hiring remotely is the easier option. You won’t always need a visa, as your prospective employee usually works from their home country. There are no immigration requirements in this scenario, but you will still need to consider distinct legal factors.

For example, you must comply with local labour laws in the country where the remote worker resides. These laws cover things like mandatory annual leave and tax withholding obligations.

Labour market testing may also apply. Home Affairs states that LMT requirements can be imposed for “particular industries” to ensure workers based in Australia are given priority².

Other factors to consider include:

• Tax and business registration risks - Hiring remote employees can lead to “permanent establishment” obligations. Read up on these so you know what to expect.
• Data privacy and security compliance - Ensure your remote work practices are strong enough to meet data protection regulations in Australia and the employee’s country.
• Paying employees - Consider how you’ll send payments to workers overseas and navigate the costs (currency exchange) involved.

✅ No visa required if the international employee is working remotely outside Australia

❌ Visa needed if the international employee is working from within Australia

Paying employees who are working overseas

Paying international staff might seem straightforward, but there are major downsides when using your Australian bank account. You’ll have to put up with poor exchange rates and exorbitant markups from most traditional banks. These really add up when making and receiving cross-border payments regularly.

In fact, the hidden costs of overseas transactions are a big barrier to creating a team of remote workers. Four in five business leaders say hidden fees are an unfair growth tax. That’s unsurprising when US SMBs spend $90+ billion a year just on fees for bank accounts, currency exchange, and international transfers³.

There is a smarter solution.

Making global hiring work with Wise Business

Hiring international employees opens doors to new skills and fresh perspectives. It can fuel growth in Australia and globally and help your business stay lean and competitive. But it also comes with its own legal and logistical considerations, which you must be fully aware of.

If you plan to bring a worker into Australia, you'll need to understand the sponsorship and nomination process. You'll also have to manage tax and payroll across borders when hiring remotely. The key is getting everything in place — an efficient system — to ensure this all goes smoothly.

Wise Business can play a critical role here. It lets you pay employees wherever they are and track costs clearly with accounting tools that make it easier to stay compliant. Transfers occur with no hidden fees at the real, mid-market exchange rate. It helps streamline overseas business payments without foreign transaction fees, saving up to 3x compared to other providers.

• Free to register — Send money to 140+ currencies with no hidden exchange rate markups
• Make up to 1,000 transfers at once with the Wise batch payments feature
• Fast, low-cost payouts to customers, freelancers, employees, investors, and suppliers globally
• Automate invoice payments, recurring transfers, and international payroll
• Fast and fully secure payments through Wise, even for large amounts

Tired of hidden fees and complex processes when making overseas payments?

Start sending with a Wise Business account! 🚀

Sources:

1. Business gov au - Hire an overseas worker
2. Home Affairs - Employing and sponsoring labour market testing for non-immigration purposes
3. Wise - State of US SMBs Report
4. Fair Work Act
5. minimum threshold
6. Skills in Demand visa (subclass 482)
7. Employer Nomination Scheme visa (subclass 186)
8. Regional Sponsored Migration Scheme visa (subclass 187)
9. sponsorship obligations