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A Department audit can happen at any time — with or without warning. Knowing what auditors look for and having your records in order is not optional. It is essential.
Employer compliance audits are conducted by the Department of Home Affairs to verify that sponsors are meeting their legal obligations. Audits can be routine or triggered by red flags. Sponsors must produce records on request, including payslips, employment contracts, and proof of Annual Market Salary Rate. Visa Advisor (Registered Migration Agent) helps employers prepare and respond.
The Department of Home Affairs has broad powers to audit approved sponsors at any time — announced or unannounced. An audit is a formal investigation into whether your business is meeting all sponsor obligations for every worker you sponsor.
Auditors can request access to your premises, your records, your HR systems, and your personnel. They can interview employees — including your sponsored workers — without your involvement. Obstructing an audit is itself a compliance breach.
The Department uses audits proactively, not just reactively. Being a compliant sponsor does not mean you will not be audited. Being prepared is the only defence.
Auditors follow a structured framework covering all sponsor obligations. These are the eight areas they assess in every audit.
Auditors verify that each sponsored worker has been paid at or above the Annual Market Salary Rate (AMSR) for the full duration of their employment. Payslips, bank records, and tax data are cross-referenced.
Auditors check that all required records exist, are complete, and are accessible. Missing or incomplete records — even without a substantive breach — attract penalties under the record-keeping obligation.
The worker's actual duties are compared against the nominated ANZSCO occupation. Auditors may interview the worker directly. Any significant deviation from the nomination is treated as a breach.
Auditors examine whether any migration costs — SAF levy, sponsorship fees, nomination fees, or agent fees — have been recovered from the sponsored worker directly or indirectly. Employment contracts and bank records are reviewed.
The Department checks whether you notified them within 28 days of required events — particularly workers ceasing employment and business structure changes. Late or absent notifications are a common finding.
Auditors verify that sponsored workers have not been subjected to adverse action for exercising their workplace rights. Fair Work records and worker interviews may be used as part of this assessment.
Where the worker is performing work, and for whom, is assessed. Outsourcing or on-hiring sponsored workers without proper approvals is a significant compliance risk frequently identified in audits.
Where applicable, auditors check whether return airfare obligations have been met for workers whose employment or visa has ceased. Failure to meet this obligation when required is a breach.
Whether announced or unannounced, audits follow a broadly consistent process. Knowing each stage helps you respond appropriately and protect your business.
Announced audits begin with a formal notice requesting records and setting a timeframe. Unannounced audits begin with inspectors arriving at your premises with identification and authorisation.
Day 0Auditors request payslips, employment contracts, duty records, visa documents, and any other records relevant to your sponsor obligations. You must provide these promptly and completely.
Days 1–14Auditors may interview sponsored workers privately. Workers can be interviewed without your presence. Managers and HR staff may also be interviewed. All interviews are formal and may be recorded.
During auditAfter review, the Department issues findings. If breaches are identified, they will detail the breach, the applicable penalty, and any corrective action required. You have the right to respond before final determination.
Post-auditYou don't need to wait for an audit to start. These six preparation steps significantly reduce your compliance risk and audit exposure. For a step-by-step walkthrough, read our guide: How to Prepare for Sponsorship Audits.
Audit yourself before the Department does. Review payslips, employment contracts, and records for every sponsored worker annually. Identify and rectify gaps before they become findings.
Keep all sponsor-related records — payslips, contracts, visa documents, nomination correspondence — in one organised location accessible within hours, not days. Delays in producing records raise red flags.
Market salary rates change. Confirm annually — or when industry awards change — that each sponsored worker's pay rate still meets or exceeds the AMSR for their role and location.
Create a calendar system that flags when sponsored workers resign, are terminated, or when your business structure changes. Missed notifications are the most commonly cited finding in compliance audits.
Everyone in HR should know what to do if inspectors arrive: verify their authorisation, contact your migration agent immediately, cooperate fully, and never obstruct or mislead inspectors.
If you discover a historical breach during self-review, seek MARA-registered advice immediately — do not alter records. Concealment significantly escalates penalties and may constitute a criminal offence.
Findings range from minor administrative issues to serious compliance failures. The Department's response is proportionate to the severity and frequency of the breaches identified.
For first-time, minor or administrative breaches the Department may issue a formal warning without financial penalty. This creates a compliance record and increases the likelihood and intensity of future audits.
For more serious single breaches the Department may issue an infringement notice — a financial penalty that can be paid without admission of guilt. Faster to resolve than court proceedings but still creates a record.
Court-ordered civil penalties for serious or repeated breaches. Each obligation breach is counted separately — an audit revealing multiple breaches across multiple workers can result in cumulative penalties of hundreds of thousands of dollars.
The Department can suspend or cancel your SBS approval immediately, preventing new nominations and potentially affecting existing sponsored workers. Cancellation is typically reserved for the most serious or systemic non-compliance.
A prohibition on applying for fresh SBS approval for a specified period. Effectively prevents your business from sponsoring overseas workers for years. Applied in cases of deliberate, repeated, or egregious non-compliance.
The Department publishes the names of non-compliant sponsors. Public naming causes reputational damage to your business, affects recruitment, and can deter prospective sponsored workers from accepting offers with your organisation.
Visa Advisor provides practical, hands-on compliance support — from proactive audit preparation through to representing your interests if a breach is identified.
Quick answers to the most common questions about employer compliance audits.
Yes. Approved sponsors are legally required to cooperate with Department inspectors and allow them access to your premises, records, and personnel. Inspectors must produce their authorisation and identification before entering.
You should verify their identity, then contact your migration agent immediately. Cooperate fully — obstructing, hindering, or misleading inspectors is an independent compliance breach that can significantly escalate penalties.
Yes. Department inspectors have the right to interview sponsored workers privately, without the employer present and without the employer's consent. Workers can also speak to inspectors voluntarily outside of a formal audit.
This is why genuine compliance matters — workers will give their own account of their duties, salary, and working conditions. Discrepancies between employer records and worker accounts are treated seriously.
Seek MARA-registered advice immediately — before taking any action. Do not alter records, backdate documents, or make payments without advice. In some circumstances, voluntary disclosure to the Department can result in reduced penalties compared to the same breach being discovered in a formal audit.
The approach depends on the nature of the breach, how long ago it occurred, and whether it is ongoing. Early legal and migration advice gives you the most options.
The duration varies significantly based on the size of your sponsorship programme, the nature of the audit trigger, and how quickly you produce requested documents. Straightforward audits of a small number of sponsored workers can be resolved in 4–8 weeks. Complex audits involving multiple workers, multiple sites, or suspected systemic non-compliance can take 6–18 months from commencement to final determination.
Yes. Before a final penalty determination is made, you have the right to respond to preliminary findings with additional evidence or submissions. The Department must consider your response before finalising the outcome.
If you disagree with a final determination, you may be able to seek review through the Administrative Review Tribunal (ART) or pursue judicial review through the Federal Court, depending on the decision type. A MARA-registered agent or legal representative can advise on the most appropriate avenue.
Sponsored workers' visas are not automatically cancelled because you are found non-compliant. However, if your SBS approval is cancelled as a result, your sponsored workers may face visa cancellation proceedings separately.
Workers are not penalised for their employer's non-compliance where they had no involvement — but they do bear practical consequences. Acting quickly to resolve compliance issues protects both your business and your workers.
Don't wait for an audit notice to find out. Speak with a Registered Migration Agent for a proactive compliance review — and know exactly where your business stands before the Department does.