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Update on Sponsorship Obligations

The Department of Immigration and Citizenship (DIAC) has recently announced updatedamendments to sponsorship obligations.

The two obligations which cause most concern to employees and their assignees are thereturn travel costs and showing equivalent terms and conditions. Please find below anextract from the revised Policy that details how and when records of these obligations mustbe kept.

Return travel costs

Regulation 2.82(3)(a) applies to standard business sponsors, religious worker sponsors,special program sponsors or a party to a work agreement and requires that the person mustkeep the following records:

The Department considers an independent person is a person who is free from influence orauthority of the sponsor, who can establish the correctness of a record on the basis of thepresented facts.

All of the records must be kept in a reproducible format. No record needs to be kept for morethan five years.

Equivalent terms and conditions of employment

Regulation 2.82(3)(c) applies to standard business sponsors or a party to a work agreementand requires that the person must keep:

The following records must be maintained in a manner capable of being verified by anindependent person:

The Department’s position is that cash payments are generally not capable of being verifiedby an independent person. If a sponsor chooses to pay sponsored persons in cash, theonus is on the sponsor to ensure that they keep records of such payments. To avoid anydoubt, sponsors are strongly encouraged to use salary payment methods such as ElectronicFunds Transfers.

Please contact Jane Simpson for further information.

Jane Simpson
NSW Manager, Relocation Services
Tel: (61) 2 96457700