Are you interested in learning about how to sponsor foreign workers in your business? Well, you’ll be pleased to know that there are a range of both temporary and permanent sponsored visas available, with each one designed for a specific purpose. Each option is also subject to its own requirements, both for the sponsor, and for the prospective visa holder. An added benefit of the employer sponsored visa programs is that they provide a pathway to permanent residency in Australia for your sponsored employee. Plus, you may be able to sponsor eligible family members to accompany your sponsored employee to Australia as dependent visa holders.
As an employer sponsor, you will be subject to certain sponsorship obligations. For example, you must keep certain records and notify the Department of Home Affairs (the Department) when certain events occur. There are also certain work visa sponsorship costs that a sponsoring employer must pay, that is, you are not permitted to transfer or recover these Australian sponsorship visa costs from the sponsored visa holder or their sponsored family members. A sponsoring employer must not recover costs that are not authorised under the Migration Regulations (a sponsor cannot request visa holders to pay costs associated with gaining a sponsorship or nomination, including the associated migration agent costs, or the Skilling Australians Fund (SAF) levy).
The passing of the Migration Amendment (Charging for a Migration Outcome) Act 2015 and the Migration Amendment (Charging for a Migration Outcome and Other Measures) Regulation 2015 also saw the introduction of provisions relating to paying for visa sponsorship. Persons who ask for or receive a benefit as outlined in the provisions can be subject to penalties, which, in some cases, can include imprisonment or the cancellation of a visa. It is therefore vital that both sponsors and visa applicants/holders are fully aware of these provisions, and what is and what is not permissible under the law.
In this article, we explore the main employer sponsored visa options that are available, including their key features and requirements, and provide links to further information. We also discuss the visa sponsorship costs that are payable, including the subclass 482 visa costs for the employer and other work visa sponsorship costs. We take a look at the visa sponsorship costs that an employer sponsor must pay themselves (rather than transfer to the sponsored employee, for example). And we examine the paying for visa sponsorship provisions, with examples of scenarios that are both compliant, and those that would be in breach of the Migration Act.
Employer Sponsored Visas
Where an employer is unable to fill a position in their business by sourcing a suitably qualified and experienced Australian worker or eligible temporary visa holder from the local employment market, they may be able to sponsor or nominate an overseas worker to fill the vacancy through an employer sponsored visa or an employer nominated visa.
Temporary Skill Shortage Visa
The Subclass 482 Temporary Skill Shortage (TSS) visa is a temporary employer sponsored visa which allows your sponsored employee to live and work in Australia for up to either two or four years. It also provides a pathway to permanent residence after two years provided that specified requirements are met at that time.
To apply for a TSS visa, three applications must be lodged, as set out below:
- As the employer, you must apply for, and be approved as, a Sponsor. Alternatively, you must enter into a labour agreement with the Government;
- you must apply to nominate the foreign worker for the position; and
- the foreign worker must separately apply for the visa.
All three applications can be lodged with the Department of Home Affairs (the Department) at the same time. If your business already has an approved sponsorship or labour agreement in place, only a nomination and visa application is required (sponsorships and labour agreements generally last for a period of five years).
Before we move on to discuss these three application stages for a TSS visa, let us first explain the three streams which comprise the TSS visa program:
- Short-term (ST) stream – this stream is for employers to source genuine temporary overseas skilled workers to fill short-term positions in a range of occupations for a maximum of two years (or up to four years if an international trade obligation applies), with eligibility to apply for permanent residence after two years;
- Medium-term (MT) stream – this stream is for employers to source highly skilled overseas workers to fill medium-term critical skills for up to four years, with eligibility to apply for permanent residence after two years; and
- Labour Agreement stream – this stream applies where the employer has entered into a labour agreement with the Government to source skilled overseas workers, where there is a demonstrated need that cannot be met in the Australian labour market and the standard visa programs are not available (for example, the occupation that is required to be filled in the business is not included on the skilled occupation list that applies to the TSS visa program). A labour agreement is an alternative to a standard business sponsorship. It also provides a pathway to permanent residency after two years.
Sponsorship
As outlined above, to sponsor an overseas worker under the TSS visa program, the prospective sponsoring employer must apply for approval as a Standard Business Sponsor (SBS). To qualify, the employer must meet a number of specified requirements. The business must be legally established and currently operating (it can be located either onshore or outside Australia). The business must also have a strong record of, or a demonstrated commitment to, employing local labour, and declaring that they will not engage in discriminatory recruitment practices. There must also be no adverse information known to the Department about the employer or a person associated with the employer (or it is reasonable to disregard this information).
Alternatively, the employer can apply for a labour agreement, as outlined above. To learn more about labour agreements, including the different types of labour agreements and the process for applying for one, please refer to our Labour Agreement Visa article.
Accredited Sponsor
The employer may also consider applying to become an accredited sponsor, provided that they meet the eligibility requirements (these are in addition to those that apply for a standard business sponsorship). The aim of the sponsorship accreditation process is to identify low risk entities, that is, Government agencies and businesses which have a long history of good dealings with the Department by lodging a high volume of good quality applications that are decision-ready and are in compliance with relevant laws.
Sponsors that receive accredited status are rewarded with priority processing for all nomination and visa applications lodged under the TSS visa program.
The employer can apply for sponsorship accreditation when they apply to become a standard business sponsor, or when applying to renew its existing sponsorship.
To learn more about becoming an accredited sponsor, including the sponsorship accreditation requirements, conditions and benefits, please refer to our article on the Business Requirements For Accredited Sponsorship.
Sponsorship Obligations
All employers who sponsor overseas workers under the subclass 482 TSS visa program must comply with a number of sponsorship obligations. Some of these obligations extend beyond the term of the sponsorship approval (i.e. beyond the standard term of five years). In addition, employers must continue to meet their sponsorship obligations to retain or renew their standard business sponsorship.
Employer sponsors must comply with all Australian migration and workplace laws. The sponsorship obligations are designed to ensure that the working conditions of sponsored workers meet Australian workplace standards; that sponsored workers are not exploited by their sponsors; and that the visa program is used for its intended purpose and are being used to meet genuine skills shortages.
Australian Sponsorship Visa Cost
As part of their sponsorship obligations, an employer must meet certain Australian sponsorship visa costs, including the following:
- pay travel costs to enable sponsored workers to leave Australia; and
- pay costs to the Commonwealth to locate and remove any unlawful worker.
A sponsor must pay the following visa sponsorship costs:
- cost of becoming a sponsor;
- nomination charges; and
- migration agent costs associated with sponsorship and nomination applications.
A sponsoring employer must also pay all costs associated with the recruitment process, including the following:
- recruitment agent fees;
- migration agent 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; and
- travelling nationally or internationally to interview and/or meet applicants.
The employer must not transfer (or attempt to) charge these work visa sponsorship costs to another person, such as a sponsored visa holder or their sponsored family members.
This obligation not to recover these Australian sponsorship visa costs commences from the date the standard business sponsorship is approved.
This obligation not to recover these visa sponsorship costs ends two years after the sponsorship ends, or when the sponsor no longer employ’s a sponsored visa holder.
To learn more about an employer’s sponsorship obligations, including sanctions that can be imposed for non-compliance, we recommend that you refer to our article on the 482 Visa Employer Obligations.
So, what are the subclass 482 visa costs for the employer?
Sponsorship Cost
When applying for sponsorship approval, the employer must pay a sponsorship application fee of $420.
Nomination
The second stage of the TSS visa application process requires the employer to nominate an occupation on the relevant skilled occupation list, or in accordance with a labour agreement, for the overseas worker to fill in their business.
The sponsoring employer must satisfy a number of specified requirements for nomination approval, which includes the following:
- the entity must be an approved sponsor or have a labour agreement in place;
- the entity must nominate an occupation from a list of eligible skilled occupations, or as specified in a labour agreement;
- there must be no adverse information known about the business or any person associated with the business (or it is reasonable to disregard this information);
- the position must be genuine and generally full-time employment;
- the entity must provide a written contract of employment;
- the proposed applicant must be employed as a direct employee, or as an employee of an associated entity if the entity is an Australian business sponsor. If the sponsor is an overseas business, them the applicant must be employed as a direct employee of the sponsoring employer (unless an exemption applies);
- meet requirements relating to the nominated salary and employment conditions;
- provide evidence of labour market testing where required (this relates to advertising in the local labour market); and
- there must be no information known to the Department indicating that the sponsor has engaged in discriminatory recruitment practices.
Subclass 482 Nomination Cost
The TSS nomination application fee payable by the sponsoring employer is $330 (for all visa streams).
Additionally, the sponsoring employer must also pay a Skilling Australians Fund (SAF) levy. The amount payable will depend on two factors, being the annual turnover of the nominating business, and the proposed visa period for the visa applicant’s stay in Australia.
The SAF can range from $1,200 (where the employer’s business turnover is less than $10 million, and they seek to sponsor an overseas worker for a TSS visa for a period of one year), to $7,200 (where the employer’s business turnover is equal to or more than $10 million, and they seek to sponsor an overseas worker for a TSS visa for a period of four years).
For a full outline of the SAF amount payable, including how it is calculated, please refer to our SAF Skilling Australians Fund Levy article.
Visa
The requirements for grant of a subclass 482 TSS visa will depend on the stream being applied for, the key criteria as outlined below.
Short-term stream
To qualify for visa grant, the visa applicant must:
- demonstrate that they have at least two years employment experience in the nominated occupation or in a related field (should generally be full-time employment completed in the last five years, although the Department may consider part-time employment). The nominated occupation must be included on the STSOL;
- have a relevant skills assessment (if required for their occupation);
- meet the Genuine Temporary Entrant (GTE) requirement. This is concerned with ensuring that they intend to genuinely reside in Australia temporarily and to comply with visa conditions; and
- meet an English language requirement (unless they qualify for an exemption).
The nomination application must also be approved.
Medium-term stream
To qualify for visa grant, the visa applicant must:
- demonstrate that they have at least two years employment experience in their nominated occupation or in a related field (should generally be full-time employment completed in the last five years, although the Department may consider part-time employment)) and the nominated occupation must be included on the MLTSSL;
- have a relevant skills assessment (if required for their occupation); and
- meet an English language requirement (unless they qualify for an exemption).
The nomination application must also be approved.
Labour agreement stream
To qualify for visa grant, the visa applicant must:
- demonstrate that they have at least two years employment experience in their nominated occupation or in a related field (this can be disregarded in certain cases in accordance with a labour agreement);
- have a relevant skills assessment (if required in accordance with a labour agreement) and
- meet an English language requirement, which is generally the same as that which applies to applicants in the short-term stream unless the labour agreement specifies a different English language competency requirement.
The nominated occupation must also be included in a labour agreement between the employer and the Government.
To learn more about the TSS visa program, please refer to our Subclass 482 – A Guide to Temporary Skill Shortage article.
Subclass 482 Visa Cost
To apply for a subclass 482 TSS visa, the fee payable at time of lodgement of the application is set out below.
Base application charge | Additional applicant charge 18 years and over | Additional applicant charge under 18 years | |
Short-term stream | $1,330 | $1,330 | $335 |
Medium-term stream | $2,770 | $2,770 | $695 |
Labour agreement stream | $2,770 | $2,770 | $695 |
If you apply for the subclass 482 TSS visa onshore, an additional fee called a subsequent temporary application charge of $700 may be payable (for each applicant). Note that the subsequent temporary application charge is not payable if the TSS visa application is lodged outside Australia.
The subsequent temporary application charge is payable for certain temporary visa applications lodged in Australia. The subsequent temporary application charge is an additional fee payable at time of lodgement of the application and is based on the applicant’s visa history.
Please refer to our article on the Subsequent Temporary Application Charge to learn more about when it is payable and an example of the subsequent temporary application charge being applied.
A payment surcharge may also be payable, depending on the method of payment.
Employer Nomination Scheme (ENS)
The Subclass 186 ENS visa program is an employer nominated visa which grants the employee permanent residence in Australia. It comprises of the following visa streams:
- Temporary Residence Transition (TRT) – this requires the visa applicant to hold a Subclass 482 visa and to have worked for the nominated employer on a full-time basis for at least two years (there are other specified requirements);
- Direct entry – this applies if the employee does not qualify for the TRT stream. To qualify under this stream, the employee is also required to have at least three years of relevant skilled work experience and a positive skills assessment in their nominated occupation (unless an exemption applies). This stream grants immediate permanent residence (unlike the TRT and labour agreement streams, which require the employee to hold a TSS visa for a certain period before being eligible for an ENS permanent residency visa);
- Labour Agreement – the nominating employer must have a labour agreement in place under this stream. The employee must have the minimum qualifications, experience and English language skills that are suitable to perform the occupation (as set out in the labour agreement). The employee may be eligible for an ENS permanent residency visa if they hold a TSS visa that was issued in accordance with the terms of the labour agreement. Alternatively, the employee may be eligible for PR after two years under the TRT stream.
To apply for a subclass 186 ENS visa, two applications must be lodged: one for the nomination (which relates to the position) and one for the visa (which relates to the visa applicant meeting specified criteria for grant of the visa).
Nomination
The key criteria that must be met by an employer to nominate the foreign worker for a position in their business (under the TRT and DE streams) include the following:
- there must be no adverse information known about the business, or any person associated with it (or it is reasonable to disregard this information);
- it must actively and lawfully operate a business in Australia;
- it must have a genuine need for a paid employee to fill a skilled position, under the direct control of the nominating business; and
- have complied with Australian immigration and workplace relations laws.
The proposed nominating business must also:
- be able to offer the foreign worker a skilled position that is full-time and ongoing for at least two years (the employment contract must not limit the position to two years);
- if the foreign worker will earn less than AUD $250,000 per year, the nominating business must pay them at least the annual market salary rate; and
- be able to demonstrate that the foreign worker is eligible for any licence, registration or membership that is required at the time of the nomination application.
The nominated occupation must also be included on the list of eligible skilled occupations for the subclass 186 ENS visa.
Where a labour agreement has been executed, the nominating employer must meet the following key requirements:
- there must be no adverse information known about the business, or any person associated with it (or it is reasonable to disregard this information);
- have complied with Australian immigration and workplace relations laws; and
- have met any nomination requirements as specified in the labour agreement.
The nominated occupation must be listed in the labour agreement as an occupation that can be nominated.
Subclass 186 Nomination Cost
The nomination application fee payable by the nominating employer for the nomination application depends on the stream being applied for and whether the nominated position is located in regional Australia.
If the application relates to a visa in a TRT stream:
- where the nominated position is located in regional Australia, no nomination application fee is payable; and
- where the nominated position is not located in regional Australia, the nomination application fee payable is $540.
If the application relates to a visa in a Direct Entry stream, the nomination application fee payable is $540.
- If the application relates to a visa in a Labour Agreement stream:
where the position is located in regional Australia, there is a $nil nomination application fee payable; and - where the position is not located in regional Australia, the nomination application lodgement fee payable is $540.
The nominating employer is also required to pay the SAF (as discussed above for the TSS nomination). The amount of the SAF levy for an ENS visa is based on the annual turnover of the nominating business. If the business turnover of the nominating business is less than $10 million, the SAF amount payable at time of lodgement of the nomination application is $3,000. Where the business turnover is equal to or greater than $10 million, the SAF amount payable is $5,000.
Please refer to our article on the SAF Skilling Australians Fund Levy for further information.
Visa
Some of the main requirements that apply include (note these vary depending on which stream you apply under):
- the skilled occupation must be listed on a prescribed skilled occupation list, and the foreign worker must possess minimum qualifications and/or employment experience as specified for their occupation;
- the proposed employee must be under 45 years of age at the time of application (note there are exemptions to this requirement);
- A positive skills assessment may be required;
- the proposed employee must have Competent English (there are exemptions to this requirement).
If a labour agreement applies, then the requirements as specified in the labour agreement must be met.
For further information on the subclass 186 ENS visa, we recommend that you refer to our article on the Employer Nomination Migration Scheme.
Subclass 186 Visa Cost
To apply for a subclass 186 ENS visa, the fee payable at time of lodgement of the application is set out below.
Base application charge | Additional applicant charge 18 years and over | Additional applicant charge under 18 years | |
Subclass 186 ENS Visa | $4,240 | $2,120 | $1,060 |
A second instalment of the application fee is payable where an applicant (who is aged 18 or over at time of application) and who is assessed as not having functional English. The amount payable is $9,800 for the primary applicant, and $4,890 for a secondary applicant. This additional fee is payable before grant of the subclass 186 ENS visa.
Note that the second instalment is not payable where the applicant is nominated as a Minister of Religion by a religious institution, or a member of the family unit of the applicant.
A payment surcharge may also be payable, depending on the method of payment.
Skilled Employer Sponsored Regional (Provisional) Visa
The Subclass 494 Skilled Employer Sponsored Regional (SESR) (Provisional) visa is a provisional visa which provides a pathway to permanent residence with the Subclass 191 Permanent Residence (Skilled Regional) visa after three years if specified requirements are satisfied at that time. The SESR visa requires the visa holder to live and work in a designated regional area of Australia. The term of the SESR visa is five years.
A SESR visa holder can travel to and from Australia on an unrestricted basis over the visa term.
Like with the TSS application, to apply for a SESR visa, there are three applications:
- Sponsorship application to be lodged by the sponsoring employer ((as sponsorships generally last for a period of five years, the employer will need to submit an application for sponsorship if they do not already have a current sponsorship approval in place). Note that the employer must be a standard business sponsor under the SESR visa program or alternatively, have an executed labour agreement; the same as that which is required to sponsor overseas workers for a TSS visa). This means that the employer is also subject to the same sponsorship obligations as for a TSS visa sponsorship (see below for further information);
- Nomination application to be lodged by the sponsoring employer (this relates to the nominated position); and
- Visa application to be lodged by the foreign worker (here they need to meet visa grant criteria relating to such things as their qualifications, skills, experience, English language proficiency and age).
As a standard business sponsor, the employer is subject to prescribed sponsorship obligations, the same as were discussed above for the TSS employer sponsor. This includes the requirement to pay certain visa sponsorship costs (for example, all reasonable and necessary travel costs to let the sponsored employee and their sponsored family members leave Australia). An employer who sponsors an overseas worker for a SESR visa must also not transfer certain work visa sponsorship costs to the sponsored employee (for example, the costs of becoming a sponsor as well as any nomination charges).
Nomination
To nominate an overseas worker for a subclass 494 SESR visa, the employer must need a number of requirements, including:
- be an approved Standard Business Sponsor (SBS) and an Australian business;
- demonstrate that the nominated position is genuine, full-time and likely to exist for five years;
- as the nominee, you must be engaged as an employee under a written contract of employment (unless an exemption applies)
- the nominated position must be located in a designated regional area;
- the occupation must be on the relevant skilled occupation list;
- Labour Market Testing (LMT) must be undertaken demonstrating that your sponsoring employer is unable to find an Australian citizen or permanent resident with the skills and experience needed to fill the nominated position (unless an exemption to LMT applies);
- unless your annual earnings are $250,000 or above, your sponsoring employer must demonstrate that the Annual Market Salary Rate (AMSR) is at least equal to or greater than the Temporary Skilled Migration Income Threshold (TSMIT) (which is currently set at $53,900);
- your nominated annual earnings must not be less than the AMSR, and must be equal to or greater than the TSMIT;
- an independent body (called a Regional Certifying Body) must also assess the AMSR;
- the terms and conditions of employment for nominated overseas workers must be no less favourable than for Australian employees.
Regional Certifying Body Advice
For an SESR nomination to be approved by Immigration, the sponsoring employer must obtain advice from a Regional Certifying Body (RCB) in the same State or Territory in which the position associated with the nominated occupation is located, confirming that the nominee will be paid at least the annual market salary rate for the occupation.
In South Australia, the relevant RCB is Skilled & Business Migration South Australia (SA). Set out below are a list of RCB advice requirements in South Australia:
- the annual salary must be no less than the Annual Market Salary Rate;
- the nominee’s annual salary must also be no less than the Temporary Skilled Income Migration Threshold (TSMIT);
- the employer and employee must meet all the Department of Home Affairs’ criteria to qualify for a SESR visa; and
- Skilled and Business Migration SA will only provide RCB advice once per employer nomination application lodged with the Department of Home Affairs (applications for the same position with the same nominee).
Labour Agreement Stream
Also be aware that in addition to the employer sponsored stream under the SESR visa program, there is also a Labour Agreement stream. This is for employers in regional Australia who have a labour agreement with the Government to source skilled overseas workers to work in an occupation specified in the labour agreement for five years. As with the Employer Sponsored stream discussed above, Subclass 494 visa holders under this stream are also eligible to apply for permanent residence after three years.
One type of labour agreement is a Designated Area Migration Agreement (DAMA) which covers a defined regional area. In South Australia, there are two DAMA’s that are currently in place:
- The Adelaide City Technology and Innovation Advancement Agreement – this covers the Adelaide metropolitan region and focuses on Adelaide’s high-tech growth industries, with occupations in the defence, space, advanced manufacturing and technology industries; and
- The South Australian Regional Workforce Agreement – this covers the entire state of South Australia, with occupations in the regional high growth industries in agribusiness, forestry, health and social services, aged care, hospitality, tourism, mining and the construction sectors.
The DAMAs in South Australia provide even more opportunities for you to qualify for an employer sponsored skilled visa in Australia.
For further information on the DAMAs in South Australia, please see the following articles:
South Australia DAMA Occupation List
DAMA South Australia Occupation List
DAMA Visa South Australia Requirements
Subclass 494 Nomination Cost
There is a $nil nomination application fee payable by the sponsoring employer. There is also no charge for obtaining RCB advice for the nomination.
The sponsoring employer is required to pay the SAF (as discussed earlier in this article for the TSS and ENS nominations). The amount of the SAF levy for an SESR visa is based on the annual turnover of the sponsoring business. If the business turnover of the sponsoring business is less than $10 million, the SAF amount payable at time of lodgement of the nomination application is $3,000. Where the business turnover is equal to or greater than $10 million, the SAF amount payable is $5,000.
The amount of the SAF levy for a holder of a subclass 494 visa is based on the annual turnover of the nominating business and the elapsed years in the visa period.
Please refer to our article on the SAF Skilling Australians Fund Levy for further information, including examples of how to calculate the SAF.
Visa
To qualify for a SESR visa, some of the key requirements that must me met by the foreign worker include that they must:
- be aged under 45 years at time of application (unless an exemption applies);
- have a positive skills assessment for a skilled occupation on the prescribed skilled occupation list (unless an exemption applies);
- have a minimum of three years employment experience in their nominated occupation (on a full-time basis and at the skill required for their occupation. Generally, they should have gained their experience within the last five years. Note that the Department may consider equivalent part-time work; and
- Have a minimum level of Competent English (unless they are exempt).
Subclass 494 Visa Cost
To apply for a subclass 494 SESR visa, the fee payable at time of lodgement of the application is set out below.
Base application charge | Additional applicant charge 18 years and over | Additional applicant charge under 18 years | |
Subclass 494 SESR Visa | $4,240 | $2,120 | $1,060 |
A second instalment of the application fee is payable where an applicant (who is aged 18 or over at time of application) and who is assessed as not having functional English. The amount payable is $9,800 for the primary applicant, and $4,890 for a secondary applicant. This additional fee is payable before grant of the subclass 494 SESR visa.
Note that the second instalment is not payable where the applicant is sponsored as a Minister of Religion by a religious institution, or a member of the family unit of the applicant.
A payment surcharge may also be payable, depending on the method of payment.
Additional Costs Associated With A Visa Application
Please be aware that payments made to the Department of Home Affairs for lodgement of a sponsorship, nomination or visa application may attract a payment surcharge.
In addition to the work visa sponsorship costs discussed in this article, other costs may also arise (these will depend on the visa being applied for and the individual circumstances of visa applicants), including:
- English Language test;
- Skills Assessment;
- Health examinations (and specialist medical fees if issues are identified);
- Police certificates (costs and requirements will vary for each county);
- Official English translations for documents in a foreign language; and
- Professional fees if a registered migration agent or immigration lawyer is engaged by an applicant to assist with the application.
Paying For Visa Sponsorship
The passing of the Migration Amendment (Charging for a Migration Outcome) Act 2015 and the Migration Amendment (Charging for a Migration Outcome and Other Measures) Regulation 2015 saw the introduction of the paying for visa sponsorship legislative framework. Paying for visa sponsorship refers to asking for, offering, receiving or providing a benefit in return for a sponsorship-related event, whether or not the sponsorship-related event occurs.
The intent of the Government in introducing this legislation was that it is not acceptable for sponsors, employers, prospective visa applicants, visa holders or other third parties to exploit their position by paying for visa sponsorship arrangements for their own gain.
Under these legislative provisions, persons who ask for, or receive, a benefit can be subject to criminal prosecution, civil penalties and/or various administrative sanctions and/or penalties. Persons who offer or provide a benefit can also face civil penalties and/or the cancellation of their visa. Executive officers, officers of unincorporated associations and third parties that aid and abet the activity, or who act negligently in relation to the activity, can also face significant penalties.
The penalty provisions apply to sponsors, prospective employers, visa holders, visa applicants and third parties who engage in paying for a visa sponsorship, if this occurred on or after 14 December 2015, regardless of:
- when or whether a visa was granted;
- whether the paying for visa sponsorship arrangement was entered into before this date; and
- whether the sponsorship event occurred or not.
From 14 December 2015, nomination applications and visa criteria require the Minister for Immigration to be satisfied that the applicant (either the nominator or visa applicant) has not engaged in paying for visa sponsorship in the previous three years.
These provisions apply to prescribed sponsored visa subclasses, including the Subclass 482 TSS visa, Subclass 494 SESR visa and the Subcass 186 ENS visa.
Asking For Or Receiving A Benefit In Return For The Occurrence Of A Sponsorship Related Event
Under the Migration Act, it is unlawful for a person to ask for, or to receive, any benefit in return for the occurrence of a sponsorship related event. This includes any third party who is involved in asking for or receiving a benefit. It also applies to a person who acts as an intermediary between the sponsor/nominator and visa applicant/holder (therefore it does not only apply to sponsors).
The Migration Act is contravened, whether or not the sponsor or third party receives the promised benefit, and regardless of whether the sponsorship related event occurs. The act of requesting a benefit from a person in return for the occurrence of a sponsorship related event is sufficient to have contravened the Migration Act.
Immigration policy provides the following examples of scenarios that are considered contraventions under the Migration Act and which could therefore be subject to an offence.
- A sponsor advises a job applicant that they will nominate them for a Subclass 482 TSS visa only if the job applicant pays the sponsor a lump sum upfront;
- A sponsor advises their sponsored visa holder that they will terminate their employment unless they return part of their salary every month;
- An employer agrees to nominate a prospective employee for a Subclass 186 ENS visa only if they agree to work for wages less than the award rate and undertake unpaid overtime;
- A sponsor agrees to continue sponsoring a Subclass 482 (Temporary Skill Shortage) visa holder only if the visa holder’s partner works for them for wages less than the award rate;
- A sponsor asks a Subclass 482 (Temporary Skill Shortage) visa holder to pay their own taxation and superannuation in return for continued sponsorship;
- An employer receives a lump sum to nominate a prospective employee for a Subclass 186 ENS visa.
In contrast, the following examples would not be considered an offence under the Migration Act:
- An employer advises a job applicant that they will nominate them for a Subclass 186 ENS visa only if the person pays all migration agent and statutory government charges;
- A Subclass 482 TSS visa holder generates a profit for the business by increasing sales by 30%. The business retains the profit and continues to employ the Subclass 482 TSS visa holder.
Provide Or Offer To Provide A Benefit In Return For The Occurrence Of A Sponsorship Related Event
Under the Migration Act, it is unlawful for a person to offer to provide, or provide, any benefit to another person or business in return for a sponsorship related event occurring. This includes third parties and is therefore not exclusive to visa applicants or visa holders.
The provisions are contravened regardless of whether the person receives the promised benefit, and regardless of whether the sponsorship related event actually occurs. The act of offering to provide a benefit in return for the occurrence of a sponsorship related event is sufficient to have breached the Migration Act.
Immigration policy provides the following examples of scenarios that are considered contraventions under the Migration Act and which could therefore be subject to an offence.
- A prospective visa applicant responds to genuine job advertisements by offering a lump sum payment to the business owner if they employ and nominate them for a visa;
- A family member of a visa holder offers the employer a car, in return for nominating the visa holder for A Subclass 186 ENS visa;
- A prospective visa holder offers a business owner their partners free labour if they employ and sponsor them for a Subclass 482 TSS visa;
- A person offers to pay their employer a portion of their weekly salary every week, in return for the sponsor continuing to sponsor them;
- A visa holder offers to pay their own taxation and superannuation.
In contrast, the following examples would not be considered an offence under the Migration Act:
- A visa holder gives their sponsoring employer a bunch of flowers as a ‘thank you’ gift for their assistance in settling into Australia;
- A prospective visa applicant offers to work the less desirable night shifts if the employer sponsors them for a visa, provided that the visa applicant gets the appropriate wage, works reasonable hours and the sponsor is compliant with the Migration Act and the Fair Work Act 2009 (Cth);
- A visa holder repays a loan between them and their sponsor, to help the visa holder establish themselves in Australia. Both parties are able to provide conclusive evidence that the repayments are for a legitimate loan.
Penalties For Contravening The Paying For Visa Sponsorship Provisions
Penalties for breaching the paying for visa sponsorship provisions can be severe, and can include civil, criminal and other administrative penalties (such as an infringement notice).
Penalties For Asking For Or Receiving A Benefit For The Occurrence Of A Sponsorship Related Event
Penalties for contravening the these provisions can include the following:
- a civil penalty;
- imprisonment for up to two years;
- an infringement notice;
- sponsorship bar or cancellation;
- visa cancellation.
A finding against a sponsor under these provisions can also negatively impact on future sponsorship and nomination applications made by the sponsor, or any visas the primary sponsored person wishes to apply for. Any finding will be recorded in departmental systems and could be viewed as adverse information in regard to a person’s suitability to be a sponsor or nominator.
Penalties For Offering Or Providing A Benefit In Return For The Occurrence Of A Sponsorship Related Event
Penalties for contravening these provisions can include the following:
- a civil penalty;
- an infringement notice;
- visa cancellation.
Under the paying for visa sponsorship legislative framework, the Minister for Immigration is required to be satisfied that there is no information available to the Department that a visa applicant has participated in paying for visa sponsorship (or it is reasonable to disregard this information). Thus if there is any information known to the Department that suggests that the applicant has engaged in any of the payment for visas conduct provisions as outlined in the Migration Act, this may be grounds to refuse subsequent visa applications.
Get More Information
Skilled Visa Options For Selected Occupations
Please refer to our series of articles on the skilled visa options that are available for selected occupations below:
Visa Options For Professionals
Skilled Trade Visa Options In Australia
Australian Immigration And Visa Options For Doctors
Australian Immigration And Visa Options For Nurses
Australian Visa Options For Engineers
Migrate To Australia As A Plastics Moulder Machine Operator, Fabricator, Welder Or Technician
Designated Area Migration Agreement
For further information on the DAMA in South Australia, please see the following articles:
South Australia DAMA Occupation List
DAMA South Australia Occupation List
DAMA Visa South Australia Requirements
Employer Sponsored Regional Visa
For further information on the subclass 494 visa, please see the following articles:
Skilled Regional Visa Australia
Regional Sponsor Migration Scheme
Regional Sponsored Visa Requirements
Requirements For Regional Employer Sponsored Skilled Visas
Employer Sponsored Visa
To learn more about an employer sponsorship visa, please see the following articles:
Employer Nomination Migration Scheme
Employer Sponsor Visa Requirements
Changes To 457 Temporary Work Skilled Visa
Business Requirements For Accredited Sponsorship
Does 482 Visa Require Skills Assessment
Subclass 482 – A Guide to Temporary Skill Shortage
Permanent Residence Eligibility Extended For Certain Subclass 457 And 482 Visa Holders
How To Sponsor An Employee For A Work Visa Or Permanent Residency
Overview Of Australian Work Visas And Employer Sponsorship
Labour Market Testing Requirements
Skilled Visa
To learn more about applying for a skilled visa, please see the following articles:
Australian Skilled Migration Visa List
General Skilled Migration Visa Options
SAF Skilling Australians Fund Levy
General Skilled Migration Visa Points
Subclass 190 State Sponsorship Visa
Australian Skilled Occupations List
Australian Permanent Resident Visa Case Study
State Sponsorship Visas In Australia
South Australia State Sponsorship Opportunities
Skilled Regional Visa Australia
Regional Sponsor Migration Scheme
Regional Sponsored Visa Requirements
Visa Options For Professionals
Skilled Trade Visa Options In Australia
English Requirements For Skilled Visas
Australian Visa Options For IT Occupations
Australian Immigration And Visa Options For Doctors
Australian Immigration And Visa Options For Nurses
Australian Visa Options For Engineers
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Contact us to book a no-obligation consultation to find out more about how your business can sponsor foreign workers and the Australian sponsorship visa costs, including the subclass 482 visa cost for the employer as well as other visa sponsorship costs.
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In conclusion, we note that the above discussion provides an overview on the Australian sponsorship visas that are available, including their key features and requirements, as well as the Australian sponsorship visa costs, including the subclass 482 visa cost for the employer as well as other work visa sponsorship costs. We also provide links to further information so that you can learn more about how you can sponsor an foreign worker for your business.
Australia’s migration laws are complex, and each case is different. We recommend that you seek professional advice if you are interested in sponsoring a foreign worker for your business, as being fully informed will give you the best chance of achieving a successful outcome on your case. A migration professional can help you to do this.
For up to date advice on how to sponsor workers for your business, as well as the Australian sponsorship visa costs, including the subclass 482 visa cost for the employer and other visa sponsorship costs, book your confidential consultation with a migration agent in Adelaide. PAX Migration Australia is a leading immigration advice service based in Adelaide.
Sources/Links
Skilled and Business Migration South Australia – Application Fees – Nomination Process