Sponsor compliance: key points (2026)
- Approved sponsors must meet their obligations for every sponsored worker, including the 482 Skills in Demand visa that replaced the TSS visa on 7 December 2024.
- Notify the Department within 28 days of key changes, such as a sponsored worker leaving, or changes to your business details or the worker’s duties.
- Breaches can lead to a bar, cancellation of your sponsorship, infringement notices, civil penalties or enforceable undertakings.
- Since 1 July 2024 it has also been unlawful to use migration status to exploit workers, and serious breaches can lead to a ban on employing new visa holders.
- If you receive a NOITTA, respond by the due date with evidence and a clear explanation.
As a standard business sponsor, you must understand your obligations to prevent having your sponsorship cancelled or barred. In 2009, the sponsorship compliance framework was introduced. The purpose of the framework is to ensure that the working conditions of the visa applicants meet Australian standards, and the visa programs are not exploited. A sponsor who does not meet their sponsorship obligations may be issued a notice (NOITTA) and subsequently be barred or have their sponsorship cancelled.
Circumstances when DoHA may impose sanctions
Department of Home Affairs (DoHA) may impose sanctions and penalties in the following circumstances:
- Failure to satisfy sponsorship obligations
- Provision of false and misleading information
- Sponsor no longer meets approval criteria
- Contravention of the law
Failure to satisfy sponsorship obligations
A standard business sponsor has to meet numerous obligations. Some of the responsibilities of a sponsor include:
- Keep records
- Provide records and information to delegates upon request
- Notify DoHA of changes to the sponsor’s directors or registered address
- Ensure that the visa applicant works in the nominated occupation
- Ensure that the visa applicant works in activities in relation to which the visa was granted.
- Notify DoHA of any changes to position title, tasks, or duties within 28 days of the change
- Ensure that equivalent terms and conditions of employment are offered and they are no less favourable than the terms and conditions the sponsor provides, or would provide, to an Australian citizen or Australian permanent resident to perform work in an equivalent position in the sponsor’s workplace at the same location.
Failure to comply with the obligations may lead to severe sanctions.
Provision of false and misleading information
Regardless of whether the sponsor provides the information knowingly or not, if the information provided is false or misleading, the DoHA may decide to cancel the sponsorship.
DoHA will consider information provided during:
- Current monitoring events
- Previous monitoring events
- Recent or previous sponsorship applications
- Nomination applications
- Visa applications
Therefore, it is essential to ensure consistency in all the applications.
Sponsor no longer meets approval criteria
If a sponsor no longer satisfies the criteria required for approval, DoHA has the authority to cancel the sponsorship. For example, the lawful operation of a business is a criterion to become an approved sponsor. If a sponsor ceases to operate, the sponsorship can be cancelled.
Contravention of law
DoHA may consider barring or cancellation if the sponsor has been found by a court to have breached a Commonwealth, State or Territory law. DoHA will take into account the past and present conduct of the person, the nature of the law that the sponsor has contravened, the gravity of the unlawful activity, and any other relevant factors.
Common Breaches
In our experience, some of the most common breaches are:
- Failing to notify DoHA of a change to the nominated position title, tasks, or duties of a sponsored employee
- Failing to notify DoHA of a change to the company’s registered address
- Failing to notify DoHA of a change to the company’s Directors
- Failure to notify DoHA of cessation of employment of a sponsored employee
As a sponsor, you have the obligation to notify DoHA within 28 days of change.
Possible Enforcement Actions
If the sponsorship obligation has been breached, the DoHA can take the following actions:
- Cancelling the business sponsorship
- Barring sponsor from sponsoring other workers
- Issuing infringement notices (when this post was first written: up to $1,332 for individuals and $6,660 for bodies corporate per breach for a first notice, and up to $2,664 and $13,320 for later notices. These amounts are set in penalty units, which are indexed and have increased since then.)
- Commencing civil litigation
- Issuing informal or formal warnings.
When a sponsorship is cancelled, holders of the former Subclass 457 or the Subclass 482 Skills in Demand visa cannot be nominated by that business for permanent residency. Visa applicants can also have their visa cancelled if the sponsorship is cancelled.
DoHA may impose more than one of the above penalties.
Notice of intention to take action (NOITTA)
If an audit is conducted by the Department and their monitoring officers believe a breach has occurred, then they may issue what is called a Notice of Intention to Take Action (NOITTA) to consider barring or cancelling a sponsor. The NOITTA will:
- Specify details of the circumstances which have resulted in NOITTA being issued
- Specify details of the action(s) that may be taken
- Specify a date for a response
The sponsor will be given an opportunity to respond to the NOITTA after which DoHA will make its decision.
Waiver of a bar
The Department may consider waiving a bar. DoHA will look at:
- whether the interests of Australia would be significantly affected if the bar were not waived and
- whether a substantial trade opportunity would be lost if the bar were not waived and
- whether there would be a significant detriment to the Australian community if the bar were not waived and
- whether the person’s inability to sponsor a proposed primary sponsored person would significantly damage Australia’s relations with the government of another country; and
- whether significant new evidence or information has come to light which was not available at the time the decision to place the bar was made; and
If you are subject of a NOITTA, VisaEnvoy can assist you in preparing a response or defence.
Related guides
Frequently asked questions
What happens to my sponsored workers if my sponsorship is cancelled?
Their visas may be cancelled, and they usually need to find a new sponsor, apply for another visa or leave Australia. Since December 2024, 482 visa holders generally have up to 180 days at a time (365 days in total) to find a new sponsor after their employment ends.
How long do I have to respond to a NOITTA?
The notice states the response date. Respond on time with evidence and an explanation of what you have done to fix any breach. Get advice before you respond.
Can a bar be lifted early?
The Department can waive a bar in limited circumstances, such as where Australia’s interests or a substantial trade opportunity would be significantly affected, or where significant new information has come to light.
How can I avoid breaches?
Keep records, calendar the 28 day notification deadlines, pay sponsored workers at least market salary rates, and run regular internal checks of each sponsored role.
Angela Parmeter
Senior Immigration Consultant- MARN: 1387039
If you would like to discuss your matter or have questions on the above please book a consultation here.
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