GUIDE
Employer compliance and obligations
A comprehensive guide to every sponsorship obligation Australian employers take on when they become an Approved Standard Business Sponsor — and what to do if the Department of Home Affairs comes knocking.
- Comprehensive legal obligations guide
- Civil penalties up to $93,900 per breach
Why Employer Compliance Matters More Than Ever
The Department of Home Affairs has significantly increased its compliance monitoring activity in recent years. A dedicated Employer Compliance team conducts both random audits and targeted investigations across all sectors. The consequences of non-compliance are serious — and importantly, you do not need to have intentionally breached your obligations to face sanctions. Unintentional breaches carry the same penalties as deliberate ones.
The Complete Obligations Framework
| Obligation | What It Requires | Timeframe | Penalty for Breach |
|---|---|---|---|
| Pay market salary | Sponsored workers paid at least market rate and not less than TSMIT | Ongoing | Civil penalty + visa cancellation risk |
| No cost transfer | Cannot charge sponsored workers for sponsorship or visa costs | Ongoing | Civil penalty up to $93,900 |
| Notify of changes | Report significant changes to worker employment within 28 days | Within 28 days of change | Civil penalty |
| Keep records | Maintain employment records for all sponsored workers for 2 years after they leave | Ongoing / 2 years post-employment | Civil penalty |
| Cooperate with inspectors | Allow authorised officers to access premises and provide requested documents | On request | Civil penalty + criminal |
| Facilitate departure | Pay reasonable costs for sponsored worker to return home if requested after visa ceases | If applicable | Civil penalty |
| No unreasonable terms | Cannot impose unreasonable employment terms on sponsored workers | Ongoing | Civil penalty |
| Secondary employment | Cannot allow/require sponsored workers to work for a third party | Ongoing | Civil penalty |
What Happens During a Compliance Audit
A compliance audit by the Department of Home Affairs typically involves:
Notice to Provide Information (NTPI)
You receive a formal notice requesting specific records and documents relating to your sponsorship arrangements. A response deadline is set — typically 14–28 days. Do not respond without legal advice.
Document Review
The Department reviews payroll records, employment contracts, position descriptions, and communication records. Our lawyers compile and review all documents before submission.
Interview or Site Visit (if required)
In some cases, the Department may request an interview with HR staff or conduct a site visit. We prepare you for this thoroughly.
Finding and Outcome
If no breach is found, the matter closes. If a breach is identified, you will receive a notice of intent to sanction. We make submissions on your behalf to minimise any penalty.
If you receive a compliance notice:
Contact us immediately. The deadline in the notice is real, and the consequences of a poorly prepared response — or no response — are severe. Our compliance team has successfully represented employers through dozens of audits with no sanctions imposed.
Proactive Compliance — Our Recommended Approach
- Maintain a dedicated immigration file for each sponsored worker — updated whenever their role, salary or circumstances change
- Calendar every 28-day notification trigger point so nothing is missed
- Conduct an internal compliance review at least annually
- Ensure your payroll team understands the TSMIT and market salary requirements
- Never make changes to a sponsored worker's role or salary without immigration advice first
- Engage Amity Lawyers' ongoing support service — our clients have never faced compliance sanctions
Related Visa Types
Speak to a Lawyer Today
No-obligation consultation