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Sponsorship Obligation Amendments – Regulation Impact Statement – Department of Immigration and Citizenship

On February 23 the Minister for Immigration and Citizenship announced changes to the temporary work (skilled) (subclass 457) visa sponsorship obligations. Further announcements were subsequently made. These measures seek to enhance the enforceability of worker protection reforms which came into effect on 14 September 2009. Since implementing the 2009 reforms, the Department for Immigration and Citizenship (DIAC) has been alerted to instances where subclass 457 sponsors may be circumventing the policy intent of these laws. These include instances where sponsored persons were not participating in their nominated occupation, program or activity, such as through engaging in certain on-hire or independent contracting arrangements. Some evidence also suggests that sponsors were circumventing their responsibility to not recover the costs of sponsorship by receiving up-front payments from the sponsored person. However, there is limited evidence of the extent of these breaches or of the economic or social harm which may result. The Government has sought to address these issues through the following regulatory amendments:

  • specifically prohibiting on-hire labour agreements that fall outside approved labour agreements;
  • preventing sponsors from engaging in certain independent contracting arrangements; and
  • strengthening the obligation for sponsors to not recover certain costs from a primary sponsored or secondary sponsored person.

A Regulation Impact Statement was prepared by DIAC and assessed as adequate by the Office of Best Practice Regulation.