Consequences of breaching sponsorship obligations in Australia

Breaching sponsorship obligations can have serious consequences for a business in Australia. The Australian government has established a range of sponsorship obligations for businesses that sponsor overseas workers, and failure to comply with these obligations can result in significant penalties, including fines and cancellation of sponsorship.

The Department of Home Affairs monitor sponsorship obligations. In certain instances, monitoring may also be conducted by Fair Work Inspectors.

Monitoring can consist of written requests, site visits, and also exchange of information between certain government agencies, including but not limited to the Australian Taxation Office and the Fair Work Ombudsman.

If the business if found not to meet their sponsorship obligations, the Department of Home Affairs can take a number of actions such as:

• bar you from sponsoring additional visa holders for a specified time

• not approve your application for sponsorship for this or any other visa

• cancel all of your existing sponsorship approvals

• ask you to enter into an enforceable undertaking

• issue an infringement notice of up to:

  • AUD1,650 for individuals and AUD8,250 for bodies corporate per obligation breach for a first notice

  • AUD3,300 for individuals and AUD16,500 for bodies corporate per obligation breach for subsequent notices

• apply to a court for a civil penalty order of up to AUD82,500 for a corporation and AUD16,500 for an individual for each failure.

It is critical that you understand your obligations as a sponsor and seek advice to ensure you are complying. Here at SCA Connect, we specialise in corporate migration. Contact us today to discuss how we can assist your business.

Disclaimer: The information provided herein is of a general nature only and does not constitute immigration advice. For more detailed and case-specific information or advice, please contact SCA Connect.