An employer approved as a standard business sponsor (SBS) or accredited sponsor under Australia's employer-sponsored migration framework takes on a suite of legally binding obligations when they sponsor workers for visas such as the Skills in Demand visa (subclass 482) and the Employer Nomination Scheme (subclass 186). These obligations continue for the duration of the sponsorship and are enforced by the Department of Home Affairs (DHA).

The obligations are designed to protect sponsored workers from exploitation and to ensure that Australia's employer-sponsored migration program is not used to undercut the employment conditions of Australian workers. Non-compliance can result in significant financial penalties and loss of sponsorship status.

• Migration Act 1958, Part 2, Division 3A — the legislative framework for sponsored migration, including sponsor obligations and enforcement
• Migration Regulations 1994 — the specific obligations that apply to standard business sponsors and accredited sponsors
• DHA: Sponsorship obligations for standard business sponsors — immi.homeaffairs.gov.au/sponsor-obligations

Equivalent terms and conditions

A fundamental obligation is to ensure that sponsored workers are employed on terms and conditions no less favourable than those that apply (or would apply) to an Australian citizen or permanent resident in an equivalent position in the same location. This means salary, leave entitlements, and working conditions must meet or exceed what would apply to a local employee. The equivalent terms obligation is designed to prevent sponsors from using visa workers as lower-cost alternatives to Australian employees.

Prohibition on cost recovery from workers

Sponsors cannot recover or transfer to the sponsored worker the costs of the sponsorship or nomination process. Prohibited costs include:

• Visa application charges paid to DHA
• Immigration agent or legal fees associated with the sponsorship or nomination
• Skills assessment fees
• Any other sponsorship-related costs

This prohibition applies both directly (e.g., requiring the worker to pay these costs) and indirectly (e.g., deducting them from wages). Breaching this obligation is a serious non-compliance matter and may result in substantial civil penalties.

Notification obligations — 28-day rule

Sponsors must notify DHA within 28 days of certain specified events, including:

• The sponsored worker ceases employment with the sponsor
• There is a change in the worker's duties (if the change is significant or the worker moves to a different nominated position)
• The worker does not begin working with the sponsor after the visa is granted
• The sponsor ceases to operate as a business, or there are significant changes to the business structure

Failure to notify within 28 days is a breach of sponsor obligations even if the underlying situation would not otherwise affect the visa holder's status.

Cooperation with inspectors

DHA-authorised inspectors have powers to enter business premises, require production of documents and records, and interview persons to verify sponsor compliance. Sponsors must cooperate with these inspections. Obstructing an inspector is a serious breach.

Consequences of non-compliance

DHA has a range of enforcement tools for sponsor non-compliance:

• Civil penalties: Financial penalties for breach of sponsor obligations — amounts vary by obligation and whether the breach is a first or repeat offence
• Infringement notices: On-the-spot fines for certain less serious breaches
• Enforceable undertakings: Agreements by the sponsor to take remedial action
• Barring: A sponsor may be barred from sponsoring new workers or from having sponsorship applications approved for a period
• Cancellation: Sponsorship approval may be cancelled, which affects all current and future nominations

The distinction between the Skills in Demand (SID) visa and the former Temporary Skills Shortage (TSS) visa: the TSS visa (subclass 482) was replaced by the Skills in Demand (SID) visa on 7 December 2024. The SID visa retains the subclass 482 number but has revised stream names and criteria. Sponsor obligations under the SID visa continue to apply in substantially the same form as under the TSS. For current obligations, refer to the DHA sponsor obligations page.

Workers who believe their sponsor has breached their obligations can report concerns to DHA. The Fair Work Ombudsman also has jurisdiction over minimum employment conditions, and a breach of the equivalent terms obligation may simultaneously breach the Fair Work Act 2009.