Sponsor Obligations Checker
As an approved sponsor, you have significant legal obligations. Use this checklist to ensure your business is compliant — and avoid penalties of up to $93,900 per breach (as at March 2026).
Important: Sponsor obligations apply from the moment your sponsorship is approved. The Department of Home Affairs conducts regular audits of sponsors. Non-compliance can result in civil penalties, criminal prosecution, and a ban on sponsoring workers.
Pay the market salary rate
CRITICALEMPLOYMENTYou must pay your sponsored worker at least the market salary rate for their occupation and location. This must be no less than the Temporary Skilled Migration Income Threshold (TSMIT) — currently $73,150 per year (as at March 2026 — verify on the Department of Home Affairs website).
Consequence of non-compliance: Failure to pay the market salary rate can result in a bar on sponsoring workers, civil penalties of up to $93,900 per breach (as at March 2026), and criminal prosecution in serious cases.
Ensure the worker works in their nominated occupation
CRITICALEMPLOYMENTYour sponsored worker must only work in the occupation that was nominated on their visa. You cannot direct them to work in a different occupation, even temporarily.
Consequence of non-compliance: Allowing a worker to work in a different occupation can result in visa cancellation for the worker and sanctions for the sponsor.
Provide equivalent terms and conditions
CRITICALEMPLOYMENTYou must provide your sponsored worker with the same terms and conditions of employment as an Australian worker in the same position. This includes leave entitlements, overtime, and other benefits.
Consequence of non-compliance: Providing lesser conditions than Australian workers is a serious breach and can result in significant penalties.
Do not recover certain costs from the worker
CRITICALCOSTSYou cannot recover, transfer, or charge the worker for: sponsorship costs, nomination costs, or any other costs associated with the visa application. You can only recover the visa application charge (VAC) in limited circumstances.
Consequence of non-compliance: Recovering prohibited costs can result in civil penalties and criminal prosecution.
Pay return travel costs if required
IMPORTANTCOSTSIf your sponsored worker's employment ends (for any reason), you may be required to pay their reasonable travel costs to return to their home country, if they request it.
Consequence of non-compliance: Failure to pay return travel costs when required can result in civil penalties.
Notify the Department of changes
IMPORTANTREPORTINGYou must notify the Department of Home Affairs within 28 days of certain events, including: the worker ceasing employment, changes to the worker's position or duties, changes to your business structure, or if the worker is not working in their nominated occupation.
Consequence of non-compliance: Failure to notify can result in a bar on sponsoring workers and civil penalties.
Maintain records
IMPORTANTREPORTINGYou must keep records of your compliance with sponsor obligations for the duration of the sponsorship and for 2 years after the sponsorship ends. This includes payroll records, employment contracts, and evidence of the worker's occupation.
Consequence of non-compliance: Failure to maintain records can result in civil penalties and make it difficult to demonstrate compliance during a Department audit.
Cooperate with Department inspections
CRITICALCOOPERATIONYou must cooperate with any inspection, monitoring, or audit by the Department of Home Affairs or the Australian Border Force. This includes providing access to your premises and records.
Consequence of non-compliance: Failure to cooperate with inspections is a serious breach and can result in criminal prosecution.
Do not engage in coercive conduct
CRITICALWORKER WELFAREYou must not engage in coercive conduct toward your sponsored worker, including threatening to cancel their visa, threatening to report them to immigration authorities, or using their visa status to prevent them from exercising their workplace rights.
Consequence of non-compliance: Coercive conduct is a criminal offence under the Migration Act and can result in imprisonment.
Ensure the worker has access to healthcare
IMPORTANTWORKER WELFAREYou must ensure your sponsored worker has access to appropriate healthcare during their employment, including workers compensation insurance.
Consequence of non-compliance: Failure to provide workers compensation can result in significant penalties.
Pay the Skilling Australians Fund (SAF) levy
STANDARDSKILLING AUSTRALIANS FUNDAs a sponsor, you must pay the SAF levy when you nominate a worker. The levy is $1,200 per year for small businesses (turnover < $10M) or $1,800 per year for large businesses, for each year of the visa (as at March 2026 — verify on the Department of Home Affairs website).
Consequence of non-compliance: The SAF levy must be paid before the nomination is approved. Non-payment will result in the nomination being refused.
Maintain your standard business sponsorship
IMPORTANTSKILLING AUSTRALIANS FUNDYour Standard Business Sponsorship (SBS) must remain current. You must notify the Department of any changes to your business that may affect your eligibility to be a sponsor.
Consequence of non-compliance: If your SBS lapses or is cancelled, your sponsored workers may have their visas cancelled.
Need help with sponsor compliance?
Nilesh Nandan advises employers on their sponsor obligations and represents sponsors in Department investigations and audits. Book a consultation to ensure your business is fully compliant.
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