The recent reforms to Australia’s employer-sponsored visa programs have introduced greater flexibility for visa holders, but with that flexibility comes heightened compliance expectations for employers.
For businesses sponsoring workers under the Skills in Demand (SID)(subclass 482) and/or Skills Employer Sponsored Regional (Temporary)(subclass 494) visa program, now is the time to audit your internal processes. Compliance failures can result in serious penalties, reputational damage, and even the loss of your ability to sponsor workers in the future.
In this article, we break down five key areas where employers must double-check their obligations to stay compliant under the latest reforms.
- Correct Salary Levels: Are You Paying the Right Amount?
One of the most common areas of non-compliance involves failing to meet the salary thresholds required under sponsorship obligations. Recent updates include:
- Approved salary
The nomination approval notice stipulates the approved annual salary of the overseas employee sponsored by your business. It is important to note that this is the minimum salary requirement and the amount stated is the base salary, ie exclusive of superannuation. It is important to check that the worker each year is paid at least the approved annual salary.
Action point:
Audit all sponsored positions for compliance with the approved annual salary. Review payroll to ensure consistency.
- Valid Nominated Occupations: Are You Sponsoring for the Right Role?
Each sponsored visa must correspond to a nominated occupation listed on the relevant Skilled Occupation List.
Recent reforms have led to:
- Greater flexibility under new frameworks such as the Skills in Demand (SID) visa as there is no separation between ‘short-term occupations’ and ‘medium to long-term occupations’ as to who can apply for permanent residency through the Employer Nomination Scheme (ENS)(subclass 186) visa.
The nominated occupation for each sponsored overseas employee is stipulated in the nomination approval and the employee must continue to work in this nominated occupation, unless a new nomination is applied for and approved by the Australian Department of Home Affairs.
- Training Benchmarks and Skilling Australians Fund (SAF) Contributions
Although the old Training Benchmarks are no longer required for new standard business sponsorships, the Skilling Australians Fund (SAF) levy remains mandatory for most employer-sponsored visa applications.
Key points:
- The SAF levy must be paid upfront and varies depending on the annual turnover of the business (whether the turnover is above or below AU$10 million), and length of the nomination.
Action point:
Ensure you have budgeted for the full SAF levy at the time of nomination and have accurate reporting of your business’ annual turnover to calculate the correct fee.
- Record Keeping and Reporting Obligations: Are You Audit-Ready?
The Department of Home Affairs has increased compliance activity and sponsors must be ready to demonstrate:
- Employee roles match the nominated occupation;
- Salaries are paid in accordance with contracts and the nomination approval notice;
- Visa holders are working only in the approved role and location; and
- Changes in employment are reported within required timeframes.
Mandatory notifications include:
- Change in business ownership;
- Termination or resignation of the visa holder; or
- Change in work duties or location.
Action point:
Review internal systems for storing contracts, pay slips, timesheets, job descriptions, and communication logs. Establish a compliance calendar to monitor visa expiry dates and reporting obligations.
- Avoiding Breaches: Consequences of Non-Compliance
The risks of non-compliance go beyond individual visa refusals. Penalties can include:
- Civil penalties and infringement notices.
- Bar on future sponsorship.
- Public naming under the Department’s sanctions list.
- Visa cancellations for sponsored workers.
Action point:
Consider conducting a self-audit or engaging an immigration advisor to perform a compliance health check, especially if your business has a large number of sponsored employees.
Take Proactive Steps to Reduce Your Risk
While the recent changes to employer-sponsored visas offer exciting opportunities to bring in skilled workers to Australia more efficiently, they also come with added complexity.
If you’d like a tailored compliance check or assistance navigating Australian visa reforms, our team is here to help.
Disclaimer:
The information on this website is intended only to provide a summary and general overview on relevant matters. It is not intended to be comprehensive nor does it constitute legal advice. You are advised to seek legal or other professional advice before acting or relying on any of the content contained in this website.
