Skip to main content

How Can We Help?

Sponsor

1. Standard Business Sponsorship (SBS) Obligations

Standard Business Sponsorship (SBS) Obligations A Business Sponsor must agree to meet certain obligations in relation to its sponsored 482/494 visa holders. This sponsorship compliance framework sets out the obligations which sponsors must meet, the prescribed circumstances under which action may be taken, the range of penalties that can be considered for breaches and the powers of delegated inspectors who administer the framework. The framework is designed to protect sponsored persons from exploitation and to maintain the integrity of the sponsored visa program by ensuring it is being used for its intended purpose.

In addition, a Business Sponsor that has ‘Accredited Status’ must, under policy, ensure that it maintains the relevant characteristics upon which this status is based.
Please note that the below is a summary and we ask that your contact us in relation to these obligations so that clarification can be provided.

The obligations are as follows:

Obligation Explanation When obligation starts When obligation ends
Ensure your employee works only in the nominated occupation

 

You must also ensure the person is employed under a written contract of employment

You must ensure the sponsored person works only in the occupation for which they were nominated.

If you want to engage a sponsored person for a different occupation, you may lodge a new nomination and visa application.

You must employ the person under a written contract of employment and they cannot work for another business, unless that business is an associated entity of an Australian Standard Business Sponsor.

On the day the visa is granted or on the day the nomination is approved to transfer the employee Ends on the day (whichever is the earliest), that employee

  • Ceases working for you; or
  • your employee has a nomination approved for a different approved sponsor; or
  • is granted a different type of visa
Ensure equivalent terms and conditions of employment
  • The annual earnings of the employee must be at least the same as those stated on the nomination
  • The employment conditions of the employee must not be less favourable than those of an equivalent Australian worker

This obligation does not apply if the annual earnings of the employee more than $250,000.

On the day the visa is granted or on the day the nomination is approved to transfer the employee

 

Not engage in discriminatory recruitment practices You must not engage in, or have not engaged in, discriminatory recruitment practices that adversely affect Australian citizens, or any other person, based on their visa or citizenship status. Ongoing Ongoing
Notify the Department when certain events occur
You must notify the Department of Home Affairs within 28 calendar days if:
  • The sponsored person does not commence employment within the time frame agreed with the sponsor;
  • The sponsored person’s employment ends, or is expected to end;
  • Return travel costs of a sponsored person and any sponsored family members have been paid in accordance with this obligation (see below);
  • There are changes to the work duties carried out by the sponsored person;
  • Your business address or contact details have changed;
  • A new director is appointed to the company, a partner joins the partnership or a new member is appointment to the management committee of an unincorporated association;
  • An insolvency/bankruptcy/receivership/liquidation/administration event occurs;
  • Your business ceases to exist as a legal entity.
Please let us know ASAP if/when any of these events occur and we can notify the Department on your behalf.
On the day approved as a sponsor. Two years after the sponsorship ends and you are no longer sponsoring anyone.
Pay travel costs to enable sponsored persons to leave Australia You must pay reasonable and necessary travel costs to enable the sponsored person (and any sponsored family members) to leave Australia to a country for which that they hold a passport. The cost is for economy air travel (or a reasonable equivalent if economy not available), airport taxes, and includes internal travel within Australia (e.g. to get from Newcastle to Sydney International airport).
The costs must be requested in writing by the Department of Home Affairs or the sponsored person and specify the country of return (country for which they hold a passport). The costs must be paid within 30 days of receiving the request in writing and notified to the Department within 28 days of payment. You will only be required to pay return travel costs once per sponsored person (unless you re-nominate the same person).
If the person holds a 482 visa, from the time the nomination is approved.
If the person does not hold a 482 visa, from the time the visa is granted.
On the day the person is nominated by another employer; granted a further visa (other than another 482 or Bridging visa), or the person leaves Australia and their 482 visa is no longer in effect.
Pay costs to locate and remove an unlawful citizen If a sponsored person (or any sponsored family members) becomes an unlawful non-citizen, you may be obliged to pay the costs incurred by the Commonwealth in locating and/or removing the sponsored person(s) from Australia if the Minister requests payment by written notice.

These costs will be capped at $10,000 per person (less any amount paid under the return travel costs obligation set out above).

On the day the sponsored person becomes an unlawful non-citizen. Five years after the sponsored person leaves Australia. That is, the Department might require payment up to five years after your sponsored employee left Australia.
Keep records / Provide records and information to the Minister
The following records must be kept in a reproducible format and capable of verification by an independent person:
  • Written request for the payment of return travel costs including when the request was received, how the sponsor complied with the request including how much was paid, who the costs were paid for, and date of payment;
  • Notification to the Department of certain reportable events (see above) including the date and method of the notification and where it was sent;
  • Tasks performed by the sponsored person in their nominated occupation and location where the tasks were performed;
  • Earnings paid to the sponsored visa holder (unless the sponsored visa holder earns over $250,000)
  • Money applied or dealt with in any way on behalf of, or as directed by, the employee (unless the sponsored visa holder earns over $250,000)
  • Non-monetary benefits provided to the sponsored person, including the agreed value and the time and period those benefits were provided (unless the sponsored visa holder earns over $250,000)
  • If there is an equivalent worker, a record of the terms and conditions that apply (or did apply), and the period they applied unless the sponsored visa holder earns over $250,000);
  • Written contract of employment under which each sponsored person is employed;
  • Annual turnover in relation to calculation of the nomination training contribution charge.
You must provide such records or information relating if requested by the Department in the manner and timeframe requested.
Under policy, ”Accredited” Business Sponsors may be requested to provide evidence that they continue to meet the characteristics of their “Accredited” status (eg ratio of overseas workers to Australians, turnover etc)
On the day you are approved as a sponsor or the nominee starts working with you. Two years after the sponsorship ends AND you are no longer sponsoring anyone.
Cooperate with inspectors
Inspectors can investigate whether your sponsorship obligations are being, or have been, complied with, you have hired an illegal worker or there are other circumstances in which the Department could take administrative action
The obligation includes:
  • Providing access to premises for inspection of any work, process or object;
  • Providing inspectors with access to interview any person on the premises;
  • Producing and providing documents within the requested timeframe;
  • Not preventing or attempting to prevent, access to a person who has custody of, or access to, a record or documents.
On the day you are approved as a sponsor or the visa applicant starts work in the nominated position. Ends five years after the day the approved sponsorship ends or the applicant stops working for you.
Not recover, transfer or charge certain costs to another person
You must not seek to recover or transfer costs from you  or to another person, including the sponsored person, that relate to:
  • cost of becoming a sponsor
  • nomination charges
  • professional fees associated with sponsorship and nomination applications
  • recruitment agent fees
  • professional legal fees
  • advertising
  • screening, short listing, interviewing and conducting reference checks of candidates
  • salaries of recruitment or human resource staff
  • outsourcing background checks, police checks and psychological testing
  • responding to queries from potential candidates and advising unsuccessful applicants
  • travelling nationally or internationally to interview and/or meet applicants
On the day you are approved as a sponsor. Two years after
your sponsorship ends and you no longer employ a sponsored visa holder.
Possible sanctions for failing to comply with sponsorship obligations
  • You could be barred from sponsoring more people for a specified time;
  • You could be barred from applying for approval to be a sponsor;
  • All of your existing approvals as a sponsor could be cancelled;
  • You could be required to enter an enforceable undertaking to promise, in writing, to complete certain actions to demonstrate that the failures have been rectified and will not happen again;
  • You could be issued an infringement notice for each failure;
  • You could be issued a civil penalty for each failure.
You could also have sanctions imposed if:
  • You provide false or misleading information;
  • You no longer satisfy the criteria for approval as a sponsor;
  • You have been found to have contravened a Commonwealth, state or territory law;
  • A sponsored person breaks a law relating to the licensing, registration or membership needed to work in the nominated position

2. Labour Market Testing Requirements

Duration of LMT
  • Minimum of 4 weeks / 28 days – must be consecutive
  • The Department will not accept evidence of non-consecutive advertising
  • For example, an advertisement is posted on a recruitment platform from 1 November 2023 to 20 November 2023 (20 days). A duplicate advertisement is run on the same platform from 20 November to 4 December 2023 (13 days). This example would comply with LMT requirements as the overlapping
    advertisements have been posted for a continuing period of at least four weeks. The day which overlaps may only be counted once
Period of LMT
  • Four months immediately prior to nomination lodgment
  • Four months since redundancies for the role
Method of advertising
  • Two advertisements required in total
  • Advertisement can be on:
    • Recruitment websites with national reach
      • Examples include Seek, Indeed, Adzuna, Linkedln (Recruitment platform), Gumtree (Jobs portal)
    • ONLY for accredited sponsors – your business website
Information required
in the advertisement
  • Position title / description
  • Salary / salary range (if guaranteed earnings is lower than AU$96,400)
    • Guaranteed earnings does not include superannuation.
  • Company / recruitment agency (company name does not need to be disclosed if
    using a recruitment agency)
  • Skills or experience requirements
  • Must be in English
Evidence
requirements
  • Copy of advertisements (please send us links, if possible)
  • For positions subject to alternative requirements – a submission explaining why an Australian worker is not available
Positions which allow
alternative methods of
evidence (note to be
assessed on a case by case
basis)
  • Intra-corporate transferees (where employed by an offshore entity associated to the Australian sponsor
  • Where nominee is an existing visa holder needing a nomination due to a change
    in business structure or pay
  • Internationally recognised record of exceptional achievement in a profession or
    field, e.g. sport, academia and research, top talent chef
  • Positions with annual earnings of AU$250,000 or more
  • Some medical occupations
Exemption to LMT
requirement
  • Exemption where international trade obligation applies – we will advise further
DISCLAIMER
The information contained in this publication is of a general nature only and may be subject to change. It should not be used as legal advice. To the extent permissible by law, Ajuria Lawyers and its associated entities shall not be liable for any errors, omissions, defects or misrepresentations in the information or for any loss or damage suffered by persons who use or rely on such information. Liability limited by a scheme approved under Professional
 Standards Legislation.