Under Australian migration law, it is strictly illegal for an employer to force or request a visa applicant to pay for sponsorship-related costs.

The Department of Home Affairs maintains a firm stance: the costs associated with becoming a sponsor and nominating a worker are business expenses that must be borne entirely by the employer. Any attempt to transfer these costs to a visa holder—whether through direct payment, wage deductions, “clawback” clauses in contracts, or side agreements—is unlawful and can lead to severe civil and criminal penalties for the employer.

Which Costs Employers Must Pay

Employers are legally required to cover the following expenses. They cannot recover these from you under any circumstances, even if you consent or sign a contract agreeing to pay:

• Skilling Australians Fund (SAF) Levy: This is the most significant employer-specific cost and must be paid solely by the business.
• Nomination Fees: Costs associated with nominating a position for a sponsored worker.
• Standard Business Sponsorship (SBS) Fees: The cost to become an approved sponsor.
• Migration Agent/Legal Fees: Professional fees incurred for preparing or lodging the sponsorship or nomination application.
• Recruitment and Advertising Costs: Expenses related to advertising the role or sourcing the candidate.
• Compliance and Monitoring Costs: Ongoing record-keeping and audit-related costs.

What Visa Applicants Are Allowed to Pay

You are only legally responsible for costs related to your own personal visa application. You may pay for:

• Visa Application Charges (VAC): The government fee for your specific visa application (though some employers choose to cover this as a benefit, they are not required to).
• Personal Costs: Expenses for medical examinations, police checks, and English language tests.
• Personal Migration Agent Fees: Costs for an agent or lawyer to assist you specifically with your visa application (not the employer’s sponsorship or nomination paperwork).

Why This is Strictly Enforced

The Migration Act 1958 (Section 245AR) prohibits offering, asking for, or receiving a benefit in return for sponsorship. Engaging in such practices carries significant risks, including:

• For Employers: Civil penalties of up to $396,000 per breach for corporations, sponsorship cancellation, being barred from future sponsorship, and potentially criminal prosecution with prison time.
• For Applicants: If you knowingly participate in an arrangement where you pay for sponsorship, your visa may be refused or canceled for being involved in a “visa scam.”

How to Protect Yourself

If an employer asks you to pay for sponsorship, nomination, or recruitment fees, you should:

1. Refuse the request: State clearly that these are legally required employer obligations.
2. Keep Records: Document all requests, emails, or contractual clauses where the employer attempts to recover these costs.
3. Report Non-Compliance: You can report suspected exploitation or illegal sponsorship practices to the Australian Border Force (ABF) or the Fair Work Ombudsman. Reporting these issues is vital for maintaining your own visa integrity and preventing the exploitation of other workers.