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4. 457 business sponsor obligations

What are my 457 business sponsor obligations?

An important reminder for all 457 business sponsors that they MUST continue to comply with the 457 sponsorship obligations. There are serious sanctions and fines in place for those who fail to comply with these. These obligations include, but are not limited to:

• you must ensure that the people you sponsor are paid the amount specified in the approved work agreement
• you must keep records that show your compliance with your sponsorship obligations. All of the records must be kept in a reproducible format and some must be capable of verification by an independent person
• you must notify the Department of Immigration & Border Protection (DIBP) within 28 calendar days if:
  • the sponsored visa holder’s employment ends, or is expected to end(the sponsor must tell us if the end date changes)
  • there are changes to the work duties carried out by the sponsored visa holder
  • there is a change to the sponsor’s address and contact details
  • you have paid the return travel costs of a sponsored visa holder or any of their family members in accordance with the obligation to pay return travel costs
  • you have become insolvent within the meaning of subsections 5 (2) and (3) of the Bankruptcy Act 1966 and section 95A of the Corporations Act 2001
  • your business ceases to exist as a legal entity.
• a company must also notify the DIBP of the following changes or events within 28 calendar days if:
  • a new director is appointed
  • an administrator is appointed for the company under Part 5.3A of the Corporations Act 2001

Also, please note that, although not specifically a 457 sponsorship obligation, a commitment was made by the 457 business sponsor to comply with training benchmarks throughout the life of the 457 business sponsorship approval.

457 business sponsors have been audited by the DIBP on all of the above sponsorship obligations and training benchmark requirements. We recommend that business sponsors conduct an annual review of their compliance with the 457 sponsor obligations. Please contact us to assist with your audit.