Overview of Sponsorship Obligations

The Standard Business Sponsorship (SBS) allows employers to sponsor persons to fill skilled positions in
their business. An SBS is usually valid for 5 years and there is no limit to the number of temporary business
entrants you can sponsor within the 5 years.
The Australian Immigration Department (DIBP) must be satisfied that the business is able to meet these
sponsorship undertakings in relation to all those it has sponsored, including secondary applicants.
Obligation to cooperate with inspectors
The business sponsor must cooperate with inspectors appointed under the Migration Act 1958 in determining
whether:
A sponsorship obligation is being, or has been, complied with: and
Other circumstances in which the department may take administrative action, exist or have existed
This obligation starts to apply on the day the business sponsorship is approved.
This obligation ends 5 years after the day on which the business ceases to be an approved sponsor
Obligation to ensure equivalent terms and conditions of employment
The business sponsor must ensure that the terms and conditions of employment provided to the primary
sponsored person are no less favourable than the terms and conditions the person provides, or would
provide, to an Australian citizen or Australian permanent resident to perfom equivalent work in the persons
workplace at the same location.
Obligation to pay travel costs to enable sponsored persons to leave Australia
The business sponsor must pay reasonable and necessary travel costs to enable the sponsored persons to
leave Australia if the costs have been requested in writing by the department or the sponsored persons and
the costs have not already been paid by the sponsor in accordance with this obligation.
The costs will be considered reasonable and necessary provided:They include travel from the primary sponsored persons usual place of residence in Australia to the
place of departure from Australia:
Include travel from Australia to the country (for which the person holds a passport) specified in the
request to pay travel costs; and
Are for economy class air travel or, the equivalent of economy class air travel
Costs are to be paid within 30 days of receiving the request
Obligation to pay costs incurred by the Commonwealth to locate and remove unlawful non-citizen
The business sponsor must pay costs incurred by the Commonwealth in locating and/or removing the
primary or secondary unlawful sponsored persons from Australia if requested. The sponsor is liable to pay
the Commonwealth the difference between the actual costs incurred by the Commonwealth (up to a
maximum of AUD$10,000) and any amount already paid under the obligation to pay travel costs to enable
sponsored persons to leave Australia.
Obligation to keep records
The sponsor must keep records of their compliance with the obligations. All of the records must be
reproducible and must be capable of verification by an independent person.

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This obligation starts to apply on the day the business sponsorship is approved.
This obligation ends 2 years after the approved standard business sponsorship ceases or there are no
remaining 457 visa holders employed by the sponsor.
Obligation to provide records and information to the Minister
The sponsor must provide records or information that goes to determining whether:
a sponsorship obligation is being, or has been, complied with ; and
other circumstances in which the Minister may take administrative action, exist or have existed;
on request and in the manner and timeframe requested by the Minister.
This obligation ends 2 years after the approved standard business sponsorship ceases or there are no
remaining 457 visa holders employed by the sponsor.
Obligation to provide information to the department when certain events occur
This obligation ends 2 years after the approved standard business sponsorship ceases or there are no
remaining 457 visa holders employed by the sponsor.
Cessation of the applicants employment within 28 days
Change to work duties
Cessation of business
Change of Director(s)
Change of business address
Obligation to ensure primary sponsored person works or participates in the nominated occupation,
program or activity
The sponsor must ensure that the sponsored person does not work in an occupation other than the
occupation for which they were nominated. If the sponsor wants to employ the person in a different
occupation then a new nomination must be lodged.
Obligation not to recover certain costs from a sponsored or secondary person
The business sponsor must not recover all or part of the costs of their recruitment or costs associated with
being a sponsor (including Migration Agent costs)
Obligation to provide training
Businesses operating in Australia must be able to confirm continual training and must maintain records.
In applying for a new business sponsorship, the business must show that they have continued to
meet the benchmarks during the previous sponsorship term
12 months after the approval of the business sponsorship, DIBP will contact the business to ask for
confirmation that the training is being maintained
The obligation ends when the sponsorship expires, unless renewing
Obligation not to engage in discriminatory recruitment practices
A sponsor cannot directly or indirectly discriminate against a person based on the immigration status or
citizenship of the person, other than a practice engaged in to comply with a Commonwealth, State or
Territory law.

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