Section 140E — Sponsorship obligations
Text of provision
(1) The Minister must approve a person as a work sponsor in relation to one or more classes prescribed for the purpose of subsection (2) if prescribed criteria are satisfied.
Note: A person (other than a Minister) who is a party to a work agreement is an approved work sponsor and does not need to be approved as a work sponsor under this section (see paragraph (b) of the definition of approved work sponsor).
(1A) The Minister must approve a person as a family sponsor in relation to one or more classes prescribed for the purpose of subsection (2) if prescribed criteria are satisfied.
(2) The regulations must prescribe classes in relation to which a person may be approved as a work sponsor or family sponsor.
(3) Different criteria may be prescribed for:
(a) different kinds of visa (however described); and
(b) different classes in relation to which a person may be approved as a work sponsor or family sponsor; and
(c) different classes of person within a class in relation to which a person may be approved as a work sponsor or family sponsor.
Plain English
Section 140E empowers the regulations to impose obligations on approved sponsors. These obligations include: paying no less than the market salary rate; not engaging in inappropriate recruitment practices; not charging the worker for sponsorship-related costs; cooperating with Department inspectors; maintaining records; and ensuring the worker leaves Australia if the visa ceases. The specific obligations are set out in the Migration Regulations 1994.
Practical effect
The sponsorship obligations regime is the primary mechanism for protecting sponsored workers from exploitation. In practice, the most important obligations for practitioners are the "no cost to worker" obligation (sponsors cannot recoup sponsorship or visa application costs from the worker) and the market salary rate obligation. Non-compliance can result in civil penalties up to $93,900 per contravention (as of 2026), sponsor bar orders, and criminal prosecution for serious contraventions. The "no cost to worker" obligation is strictly enforced — repayment clauses in employment contracts are void and unenforceable.