Section 140H — Nominations by standard business sponsors
Text of provision
Requirement to satisfy sponsorship obligations
(1) A person who is or was an approved sponsor must satisfy the sponsorship obligations prescribed by the regulations. Work agreements and sponsorship obligations
(2) However, if:
(a) a person (other than a Minister) is or was a party to a work agreement; and
(b) a sponsorship obligation, that would otherwise be imposed on the person by the regulations, is varied by a term of the agreement; then, the person must satisfy the sponsorship obligation as so varied.
(3) If:
(a) a person (other than a Minister) is or was a party to a work agreement; and
(b) an obligation, identified in the agreement as a sponsorship obligation, is imposed on the person by a term of the agreement; then, the person must also satisfy the sponsorship obligation imposed by the term of the agreement. Sponsorship obligation regulations
(4) The regulations may require a person to satisfy sponsorship obligations in respect of each visa holder sponsored by the person or generally.
(5) Sponsorship obligations must be satisfied in the manner (if any) and within the period (if any) prescribed by the regulations.
(6) Different kinds of sponsorship obligations may be prescribed for:
(a) different kinds of visa (however described); and
(b) different classes in relation to which a person may be, or may have been, approved as a work sponsor or family sponsor.
(7) The regulations cannot prescribe, as a sponsorship obligation, an obligation to pay the Commonwealth an amount relating to the cost of a person’s immigration detention.
Plain English
Section 140H provides that a standard business sponsor must lodge a nomination of a position or activity before a person can apply for certain employer-sponsored visas. The nomination must satisfy criteria set out in the regulations, including that the position is genuine, falls within an eligible occupation, and meets the market salary rate. The Minister must approve or refuse nominations.
Practical effect
The nomination step is the critical quality gate in the TSS and ENS visa processes. A nomination approval does not guarantee visa grant — the worker must still satisfy the visa criteria. Common nomination refusal grounds: the position is not a genuine full-time role; the occupation is not on the relevant skills list; the salary offered is below the Temporary Skilled Migration Income Threshold (TSMIT) or the market salary rate. TSMIT is $73,150 per year as of July 2023 and indexed annually.