If your business holds, or has held within the last 5 years, a valid Standard Business Sponsorship or Temporary Activities Sponsorship, you must comply with all the sponsorship obligations (see here) and all relevant Australian immigration and workplace laws. A failure to do so can result in serious consequences for both your business and the people you sponsor.
How compliance is monitored
The Department of Home Affairs (the Department), often working alongside the Australian Border Force (ABF) and agencies such as the Fair Work Ombudsman and the Australian Taxation Office (ATO), actively monitors sponsors and sponsored visa holders. This applies not only while you’re a sponsor, but for up to 5 years after your sponsorship ends.
Monitoring can include:
- Requesting for information and records
- Conducting site visits to your business premises, with or without prior notice
- Sharing data with other agencies and government bodies
Failure to cooperate is considered a breach of your sponsorship obligations.
What happens if you breach your sponsorship obligations
The consequences can be significant. From an administrative standpoint, the Department may:
- bar you from sponsoring more visa holders
- refuse future sponsorship and visa applications
- cancel existing sponsorship approvals
- issue a formal compliance notice
- require you to enter into an enforceable undertaking to rectify the breach
From a civil perspective, penalties can include:
- Infringement notices of up to $15,840 (individuals) and $79,200 (corporations)
- Civil penalty orders issued by a court of up to $76,200 (individuals) and $396,000 (corporations)
For serious, deliberate, or repeated breaches, the Department may issue a Prohibition Declaration, banning you from sponsoring foreign workers altogether.
The ABF also maintains a Public Register of Sanctioned Sponsors which lists sponsors who have breached their obligations. This list is available online to deter non-compliance and help protect foreign workers from exploitation.
How are breaches assessed?
When assessing a breach of sponsorship obligations, the Department or ABF may consider a range of factors to determine the appropriate consequences. These may include the severity of the breach itself, the sponsor’s past conduct (particularly whether there have been any previous breaches) and whether the sponsor was aware of their obligations and the breach that occurred.
The Department may also consider whether the sponsor has since implemented any processes or systems to prevent similar issues in the future, the level of cooperation shown during the investigation (including whether the breach was self-reported), and how long it took the sponsor to complete an internal audit or respond to the Department’s inquiries. Additionally, they will consider the seriousness of any direct or indirect consequences of the breach, the number of sponsored workers affected and the broader impact on the community.
These factors are weighed collectively and can influence whether a sponsor receives a warning, is asked to enter into an enforceable undertaking, or faces more serious administrative or civil penalties.
What do you need to do?
As a sponsor, it is crucial to:
- Notify the Department of any notifiable events within the required timeframes
- Ensure all sponsored employees hold a valid visa with appropriate work rights
- Maintain employment terms and conditions that are no less favourable than those offered to Australian workers
- Avoid any actions that could breach your obligations, such as:
- Reducing salaries or hours without proper advice
- Standing down employees permanently
- Failing to maintain proper records of employment
How we can help
We often see situations where businesses make changes in the ordinary course of operations (e.g. adjusting rosters or cutting costs) without realising they may be breaching their sponsorship obligations. If you are unsure whether a past or planned business decision could put your sponsorship at risk, it is important to act quickly. We can assist you in reviewing your compliance position, rectifying any existing breaches, and advising on strategies to ensure you meet your obligations moving forward. If you need further assistance, get in touch with our experienced team.
Contact us by email at [email protected] or by phone at +61 3 9016 0484. You can also subscribe to our newsletter for the latest Australian immigration news straight to your inbox.
