Need Speedy Nomination Approvals for Your Cutting-Edge STEM Business?
To foster innovation and address essential skills shortages, the Australian government has introduced a transformative pathway for STEM-based startups to achieve accredited sponsor status. This initiative is set to support startups in STEM (Science, Technology, Engineering, and Mathematics) fields by streamlining their access to global talent. The accreditation framework is designed to prioritize startups that exhibit creativity and ambition, particularly those backed by Venture capital from Early Stage Venture Capital Limited Partnerships, commonly referred to as ESVCLPs.By incentivizing advancement and supporting high-growth potential businesses, the government expects to build an environment for the development of transformative products and solutions.
Getting an accredited sponsor status offers numerous benefits for STEM-based startups. It enables streamlined processing, giving accredited sponsors priority when processing visa nominations. This significantly reduces administrative delays and ensures that businesses can quickly onboard skilled workers from overseas.
The accreditation enhances credibility, it acts as a mark of trust, and signifies that the startup is a low-risk entity compliant with Australian employment standards and market salary benchmarks. Additionally, accreditation allows startups to access global talent by sponsoring skilled workers through streamlined processes, which is especially critical for STEM fields where specialized expertise is often scarce locally. By facilitating access to skilled labor, the policy supports the rapid growth of innovative startups, contributing to broader economic growth and job creation in Australia.
STEM startups are uniquely positioned to tackle the challenges of the 21st century, from advancing renewable energy to reshaping artificial intelligence and biotechnology. With access to streamlined visa processing and a global talent pool, accredited sponsors can focus on achieving breakthroughs that drive industries forward.
If you are part of a STEM-focused startup looking to leverage this opportunity, understanding the key criteria and benefits of becoming an accredited sponsor is essential. Below, we break down everything you need to know to take advantage of this transformative policy.
If you need expert assistance, do not hesitate to connect with a MARA Agent
What Qualifies a Startup for Accreditation?
To be considered a startup for accreditation purposes, a business must be a young and innovative enterprise focused on developing distinctive products or services. These businesses are typically marked by their high potential for rapid expansion and their ability to either improve upon existing products or introduce entirely new categories of goods or services. Companies that simply establish a branch in Australia or register a new Australian Business Number (ABN) without showcasing substantial innovation or growth potential do not meet the criteria for this classification.
Eligibility Criteria STEM-Based Startups to Become Accredited Sponsors in Australia
To qualify as an accredited sponsor under this category, startups must meet specific and stringent criteria. These requirements ensure that only genuine, innovative businesses benefit from the program.
- The startup must operate in a STEM-based field, broadly defined to include natural and physical sciences, information technology, engineering and related technologies, agriculture, and environmental sciences.
- The definition of STEM is intentionally broad to encompass a wide range of innovative activities. However, applicants must provide evidence demonstrating that they are developing a unique product or service within their field.
- The startup must have secured venture capital funding from a fund registered as an Early Stage Venture Capital Limited Partnership (ESVCLP) within 2 years immediately prior to applying for accreditation.
- ESVCLP must be registered by Innovation and Science Australia under the Venture Capital Act 2002. Conditional registrations do not meet the criteria, ensuring that only well-vetted funding sources are considered.
- Evidence of funding can take various forms, including loan agreements, share sale agreements, or note agreements. Applicants must provide detailed documentation to prove the legitimacy of the funding source.
| Requirement | Evidence Required |
| Australian startup in a STEM-based field | Proof that the business operates in a STEM-related area. |
| Venture capital funding from an ESVCLP | Evidence of funding from an ESVCLP within the two years prior to the accreditation request. Examples include a loan agreement, share sales, subscription, or note agreements. Registration of the ESVCLP must be verified on the government’s official Early Stage Venture Capital Limited Partnerships list. Conditional registrations are not accepted. |
| Standard business sponsor | No additional evidence is required, as this is verified through departmental systems. |
| No adverse monitoring outcomes | No extra evidence needed unless adverse outcomes are applicable and justifiable to disregard. |
| Compliance with employment contracts for visa holders | A template employment contract meeting National Employment Standards must be provided, ensuring it’s an employment agreement and not a subcontract. Assignment letters for intra-company transfers are also acceptable. |
| Employees paid per market salary standards | Provide an Enterprise Agreement or internal salary table reflecting market rates. Documentation must detail how these salaries align with market standards for relevant roles. |
Why this is a win-win policy for Australia’s Economy and Startups
This policy is a significant advantage for both the Australian economy and startups. Startups are key contributors to job creation and economic development, and facilitating their access to skilled labor ensures they can scale their operations effectively. The emphasis on venture capital-backed startups signals Australia’s openness to innovation and investment, enhancing its attractiveness as a global business destination. By promoting technological advancement through the support of startups in cutting-edge fields, the policy ensures that Australia remains at the forefront of global technological innovation.
These dynamic enterprises, often the architects of tomorrow’s technologies, now have an unprecedented opportunity to scale their operations and attract top-tier professionals. Getting accreditation for a STEM startup helps the company by ensuring faster visa processing, enhancing credibility, providing access to global talent, and supporting rapid growth. These benefits allow the startup to hire skilled workers quickly, boost its reputation, scale operations efficiently, and remain competitive in the global market.
Must-Know Things if You Are Going to Get Accreditation for Your STEM Startup
- Ensure all employees have written contracts that comply with National Employment Standards (NES).
- Pay employees according to current market rates and keep evidence such as remuneration surveys or job advertisements.
- Maintain a clean compliance record to avoid adverse monitoring outcomes, which could lead to the revocation of accreditation.
- Inform authorities if your business changes and no longer focuses on STEM fields.
- Avoid breaches of compliance or unethical business practices to prevent accreditation review.
- Accreditation may be revoked if adverse information is identified by the Department of Home Affairs.
- Revocation of accreditation does not necessarily invalidate the underlying sponsorship approval, which remains effective until its expiry unless other grounds for cancellation exist.
- Sponsors are given opportunities to address issues or demonstrate eligibility under an alternative accreditation category.
What to do next if you are a STEM startup
Ensure you meet all the criteria for Accredited Status. Seek help from a migration agent or legal advisor to guide you through the application process and make sure all documentation is in order.
If a business applies for Accredited Status but doesn’t meet the requirements, they can still be approved as a Standard Business Sponsor (SBS) for 5 years. They cannot appeal the decision to refuse accreditation, but they can appeal if they are denied SBS status. If they are renewing an existing SBS agreement and don’t meet the new accreditation requirements but still qualify as an SBS, their agreement should be renewed for another 5 years. If the request for accredited status is denied, the business must be informed of the reasons for the refusal.
