SBS Cancelled: Consequences for the Business and the Sponsored Worker

Having a Standard Business Sponsorship (SBS) cancelled is a serious situation for both the business and the worker on a 482 visa. Understanding the consequences and the window to respond is important.

When DHA cancels an SBS

DHA may cancel an SBS if the business:

• Breaches its financial obligations (does not pay the market salary rate to the 482 worker)
• Fails to meet its training benchmark obligation
• Allows the 482 worker to work in a role other than the one nominated
• Does not report when a worker leaves
• Provided false information when applying for the SBS
• No longer operates a lawful business, or the business closes

Consequences for the worker on a 482 visa

When an SBS is cancelled, the worker’s 482 visa is not cancelled immediately, but:

• The 482 visa remains in effect, though its conditions are affected
• The worker usually has 60 days (counted from when the business notifies the end of employment) to:
  • Find a new employer and transfer the sponsorship
  • Apply for a different visa
  • Depart Australia

For the steps involved in moving to a new sponsor, see the guidance on transferring 482 sponsorship to a new employer.

Consequences for the business

A business whose SBS is cancelled:

• Cannot sponsor new overseas workers (the SBS has been cancelled)
• May face a financial penalty depending on the severity of the breach
• May be publicly listed as a non-compliant employer (Work Health and Safety and Workplace Relations records)
• Will find it harder to obtain a new SBS in the future

The process when an SBS is at risk of cancellation

DHA does not cancel an SBS automatically without notice. Typically:

1. DHA issues a show cause notice (a request for an explanation)
2. The business has a set period to respond and provide evidence
3. DHA makes a decision — it may cancel or retain the SBS

Advice for the business

Keep complete internal records of:

• The actual salary paid to 482 workers (compared with the market rate)
• Training expenditure that has been carried out
• Any change to the role or work location of a 482 worker
• All notifications sent to DHA

Reporting changes proactively rather than waiting for DHA to discover them usually leads to a better outcome.