Subclass 482 Sponsor Obligations: Equivalent Terms, SBS Approval and Training
Migration Act 1958 (Cth) and Migration Regulations 1994 obligations for Standard Business Sponsors of Subclass 482 visa holders: equivalent terms, monitoring and SAF levy.
Standard Business Sponsorship approval
Standard Business Sponsorship approval is a prerequisite for nominating a visa holder under the Subclass 482 (Skills in Demand) visa. This requirement is outlined in Division 2.19 of Part 2A of the Migration Regulations 1994, as enabled by the Migration Act 1958 (Cth). Without SBS approval, a nomination cannot be lodged.
SBS approval is typically valid for a period of five years. To be eligible, a business must be lawfully operating in Australia and have no adverse information relating to the business itself or any individuals associated with it. Sponsors considering employing Working Holiday Maker tax and super (417/462) visa holders should ensure they meet all relevant requirements.
Certain low-risk sponsors may be eligible for Accredited Sponsor status. This status provides priority processing and requires meeting additional criteria beyond those for SBS approval.
Equivalent terms and conditions of employment
Regulation 2.79 mandates that the terms and conditions of employment offered to a sponsored worker must be no less favourable than those provided to an Australian citizen or permanent resident performing equivalent work in the same workplace location. This obligation also requires that the terms and conditions are no less favourable than those stated in the approved nomination. ‘Terms and conditions’ encompasses a range of elements, including wages, leave, allowances, hours, and other employment benefits. Casual employee definition: section 15A Fair Work Act applies to this assessment.
The obligation to provide equivalent terms and conditions does not apply if the sponsored worker’s annual earnings are AUD 250,000 or more. This exemption applies regardless of the nature of the work being performed.
Failure to comply with the equivalent terms obligation can have serious consequences. These may include sanctions such as barring, cancellation of sponsorship, and the imposition of civil penalties.
Skilling Australians Fund levy
The Skilling Australians Fund (SAF) levy replaced training benchmark contributions for all nomination applications lodged from 12 August 2018. This levy contributes to funding for training and skills development programs in Australia. Employers must be aware of their obligations regarding this levy as part of their sponsorship responsibilities. National Employment Standards: 11 entitlements deep dive
The amount payable for the SAF levy varies depending on business size. Small businesses, defined as those with an annual turnover of less than AUD 10 million, pay AUD 1,200 per year of nomination. Larger businesses, with an annual turnover of AUD 10 million or more, pay AUD 1,800 per year of nomination.
Payment of the SAF levy is required in full at the time the nomination is lodged. The levy is generally not refundable, except in very limited circumstances. Labour Agreement sponsors should also check their specific obligations, as they may be required to satisfy training contribution requirements under their agreement.
Monitoring, record-keeping and reporting
Sponsors are required to maintain comprehensive records demonstrating ongoing compliance with their sponsorship obligations. These records must be made available to the Department of Home Affairs upon request. Sponsors must also adhere to the ‘no cost recovery’ obligation, meaning they cannot seek reimbursement from sponsored workers for any costs associated with their sponsorship. Age Discrimination Act 2004: overview may also be relevant to record-keeping practices.
Certain events trigger mandatory reporting obligations to Home Affairs. Sponsors must notify the Department within a specified timeframe, either 28 days or 10 days depending on the event. These notifications ensure Home Affairs is informed of changes affecting sponsored workers and the ongoing validity of the sponsorship.
Sponsors are obligated to cooperate fully with inspectors appointed under the Migration Act 1958, including those from the Australian Border Force. Failure to comply with these obligations can lead to administrative sanctions, civil penalties (potentially up to AUD 99,000 per contravention for bodies corporate, subject to indexation), and barring from the Subclass 482 program.
Frequently asked
What is the salary threshold above which the equivalent terms obligation does not apply?
Where the sponsored worker's guaranteed annual earnings (excluding non-monetary benefits) are AUD 250,000 or more, regulation 2.79 does not require terms equivalent to those of an Australian doing the same work in the same location.
Are training benchmarks A and B still in force?
No. Training benchmarks A and B were replaced by the Skilling Australians Fund levy for nominations lodged from 12 August 2018. The levy is AUD 1,200 (small business) or AUD 1,800 (larger business) per year of nomination.