The sponsorship obligation most commonly overlooked

When a business applies to become a standard business sponsor (SBS) under the subclass 482 Temporary Skill Shortage (TSS) visa program, they do so with the acceptance that there are certain sponsorship obligations they must fulfil once approved. The sponsorship compliance 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.

Generally speaking, the sponsorship compliance framework covers the following obligations:

• Notification to the Department when certain events occur;
• Payment of travel costs to enable sponsored persons to leave Australia;
• Payment of costs to locate and remove an unlawful citizen;
• Keep records/provide records and information to the Minister;
• Cooperate with inspectors;
• Not recover, transfer or charge certain costs to a sponsored person;
• Ensure equivalent terms and conditions of employment;
• Ensure the visa holders works in the nominated occupation only;
• Not engage in discriminatory recruitment practices.

One of the most commonly overlooked obligations is that sponsors are required to notify the Department of Home Affairs when a new partner, director or member to the managing committee is appointed. This must be done within 28 days of the appointment.

A business does not need to notify of the termination of an appointment.

Your advisor at Ajuria Lawyers can notify the Department of an appointment on behalf of the business. All you need to do is reach out to them with the name and date of birth of the individual, and their appointment date.

The main reason this obligation exists is to help the Department ensure that nominated positions are genuine, and have not been created purely to facilitate the entry or stay of the nominated person in Australia. One of the ‘warning signs’ that case officers are instructed to look for is whether the nominated person is a relative or personal associate of an officer of the sponsoring business, or a director or owner of the business themselves.

Although it is unlikely that a business would be sanctioned for a single breach of this obligation alone, it is still critical to ensure compliance. A lot of little breaches can add up into something more serious, and non-compliance can also have significant ramifications if it leads to other issues, such as the intentional provision of false or misleading information.

If you would like more information on the sponsorship obligations, please do not hesitate to get in touch with us.

DISCLAIMER This information is current as of 14 July 2020 and subject to change. The information contained in this publication is of a general nature only. 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.