Fair Work Inspecting 482 Visa Sponsors: The Real Process

Two agencies, one goal

When it comes to checking 482 visa sponsor compliance, there are two agencies to understand:

DHA (Department of Home Affairs) — manages SBS status and migration sponsor obligations. DHA can suspend or cancel SBS status and seek civil penalties.

Fair Work Ombudsman (FWO) — the agency that enforces the Fair Work Act, overseeing fair pay, working conditions, and the protection of workers’ rights. The FWO can bring civil proceedings independently of DHA.

These two agencies share information and coordinate investigations, particularly in cases involving foreign workers. An FWO investigation into underpayment can trigger a DHA investigation into a breach of sponsor obligations, and vice versa.

How an inspection is triggered

1. A complaint from a nominee or former employee

This is the most common source. A nominee dissatisfied with working conditions, or one who has left, can complain to the FWO or DHA. Anonymous complaints are also accepted.

Common complaints include:

• Being paid less than the rate committed to in the nomination
• Being forced to work unpaid overtime
• Being charged costs related to the visa (immigration costs)
• Unsafe working conditions
• Being threatened with cancellation of sponsorship unless they accept unfavourable conditions

2. Random compliance activity

DHA and the FWO periodically conduct random checks on SBS sponsors, particularly in higher-risk industries such as:

• Construction and mining
• Hospitality and restaurants
• Health care
• Agriculture and food

A business sponsoring many nominees, or one in a higher-risk industry, has a greater chance of being selected for inspection.

3. Information from a third party

The FWO receives information from unions, competitors, or witnesses. In industries with strong unions, 482 sponsorship activity is often closely watched.

4. Internal data analysis

DHA and the ATO share payroll and tax data. A discrepancy between the salary declared in the nomination and the actual income reported to the ATO is an automatic warning sign.

The real inspection process

Stage 1: Notice and request for documents

Typically, the inspecting agency sends a formal letter requiring the sponsor to provide:

• Payslips and payroll records for all nominees over the requested period
• Timesheets
• Employment contracts
• Evidence of superannuation paid
• Internal training records
• An org chart and evidence of the nominee’s actual work

The deadline is usually 14–28 days. Failing to respond, or responding incompletely, worsens the situation.

Stage 2: Interview or on-site inspection

For more complex cases, an inspecting officer may:

• Interview the nominee directly (sometimes without prior notice)
• Visit the workplace to inspect it
• Interview management and HR

An important note: the nominee has the right to legal support during an interview. DHA must not use a nominee’s information to remove them while they are cooperating in a compliance investigation.

Stage 3: Assessment and decision

After gathering enough information, the inspecting agency reaches a conclusion:

• No breach → the file is closed
• Minor breach → warning, and a requirement to remediate
• Systemic breach → administrative penalty or proceedings
• Serious breach → referral to the FWO for civil proceedings, or DHA cancellation of the SBS

What specifically is checked

TSMIT and market salary compliance: Whether the actual salary paid meets the current TSMIT. Overtime cannot be counted to reach TSMIT — the base salary must be sufficient.

Equal pay: Whether the nominee is paid the same as, or more than, an Australian colleague in the same position, with the same experience, at the same location.

No charging the nominee for the visa: The sponsor absolutely must not charge visa costs, nomination costs, or the SAF levy to the nominee — whether directly or indirectly (such as through salary deductions, or loans with conditions, and so on).

Timely notification to DHA: Whether the sponsor notified DHA of mandatory events (the nominee leaving, a change in conditions, and so on) within the required period.

Training: Whether the sponsor met the requirement to contribute to the training of Australian workers (whether the SAF levy was paid correctly).

Consequences when a breach is found

• A formal warning and a requirement to remediate within a deadline
• An administrative penalty under the relevant scale (see the article on civil penalties)
• Suspension of SBS status — temporarily unable to lodge new nominations
• Cancellation of SBS status — no longer able to sponsor until restored or a new application is lodged
• Civil proceedings brought by the FWO in the Federal Court — penalties can reach hundreds of thousands of dollars
• Recovery of back pay and compensation for a disadvantaged nominee

Preparing for inspection from the outset

Rather than waiting until inspected, a smart sponsor will:

• Maintain accurate, auditable payroll records
• Conduct an annual internal review of salary and conditions compliance
• Ensure the nominee’s employment contract reflects the actual conditions
• Never charge any visa-related fee to the nominee
• Notify DHA promptly of every mandatory change

A culture of compliance from the start is the best way to keep the risk of an inspection from becoming an investigation.