The Skilled Migration Consultative Panel will assist the Government to finalise the sponsorship obligations that will apply to all employers of subclass 457 visa holders.

The draft sponsorship obligations include:

• To cooperate with inspectors (inspectors will be given powers similar to those of workplace inspectors under the Workplace Relations Act 1999).

• To pay the minimum salary level at or above the level worked out in a way specified in a legislative instrument (if any) made for the purpose of this subsection (as in force from time to time). The Government is considering basing the minimum wage for subclass 457 visa holders on the market rate paid to Australian workers employed in similar positions.

• To pay travel costs to enable 457 visa holders to leave Australia (the travel costs are for economy class air travel or the equivalent of economy class air travel).

• To pay to the Commonwealth costs of locating and removing a 457 visa holder or secondary visa applicant from Australia of up to $10,000. However, if a sponsor has already paid the costs of the return travel and the 457 visa holder failed to use the return travel paid, the sponsor is not liable to pay the Commonwealth’s removal costs.

• To keep records for approximately 5 years after the employer ceases to be a standard business sponsor and the 457 visa holder ceased employment or is granted another visa.

• To provide records and information to the Minister when requested.

• To provide information to Immigration regarding the following:

-The cessation, or expected cessation of a 457 visa holder’s employment

-Any change of information relating to the training requirement and a sponsor’s address and contact details

-Any change to the sponsor’s legal structure or ownership of the business

-Any sponsor involved in bankruptcy, voluntary administration, receivership or winding up proceedings

The draft obligations do not require sponsors to be liable for recruitment costs associated with the primary visa holder or the costs of migration agent services.

The draft obligations also propose removing the requirement for employees to cover health care costs for temporary overseas worker. The Minister for Immigration has announced that subclass 457 visa holders may be required to take out private health insurance at their own expense and cover any school expenses for their children.

Under the Worker Protection Bill passed through both Houses of Parliament late last year, employers who fail to satisfy a sponsorship obligation may face administrative sanctions and/or pecuniary penalties of up to $33,000 from September 2009. The Worker Protection Bill is expected to come into force on 1 July 2009.