The Government announced tougher penalties to unauthorised employment of non-citizen from 1 June 2013. There will be new non-fault civil penalty penalties for employers who allow an unlawful non-citizen to work, refer an unlawful person to a third person for work, allow a lawful non-citizen to work in breach of a work-related visa condition or refer a lawful non-citizen to a third person for work in breach of a work-related visa condition. Offending employers will be responsible regardless of whether they knew or were reckless about verifying the non-citizen’s work entitlements. Infringement notices can also be issued as an alternative to commencing civil penalty proceedings. The legislation will modify existing criminal offences for employers, increase liability of executive officers of corporate bodies involved in employing unlawful workers and provide new investigative powers to the Department of Immigration and Citizenship.

It is essential for Australian employers to be proactive in verifying the immigration status and work rights of all existing and prospective non-citizen workers to avoid the risk of sanctions.

It was announced in the federal budget that the application fees for Subclass 457 Temporary Work (Skilled) visas would almost double. From 1 July 2013, visa application fees will increase from $455 to $900, earning the Government an extra $47 million dollars in the next financial year.

The announcement did not mention the extent of increase (if any) for the Standard Business Sponsorship fee or nomination fees, which are currently at $420 and $85 respectively. It is likely that these fees will be at least subjected to the annual index to CPI from 1 July.

The increase in 457 visa fees will contribute to the funding of the Fair Work Ombudsman (FWO) in the monitoring of Standard Business Sponsors.

The FWO is a statutory office responsible for ensuring compliance with national workplace relations law. The FWO’s jurisdiction is set out in the Fair Work Act, and he operates independently of Government, making his own decisions about all investigations.

In March 2013, it was announced that the FWO would be given powers to investigate compliance with sponsorship obligations to ensure that subclass 457 workers are employed in their nominated occupation and are receiving market salary rates specified in their visa applications

Fair Work Inspectors have the power to enter business premises at any time during work hours and request to inspect any relevant documents or interview any person.

“Currently the Department has 34 active inspectors to investigate sponsors’ compliance with the sponsorship obligations. In 2011-12 there were over 22 000 active sponsors of Subclass 457 visa holders. The FWO currently has over 300 appointed inspectors across the country. Their appointment as inspectors under the Migration Act 1958 (Migration Act) will substantially expand the sponsor monitoring inspectorate, and the government’s capacity to monitor the Subclass 457 program.”