What Happens If Your Business Is Audited by the Department of Home Affairs?

For Australian business owners, sponsoring global talent is the key to scaling operations. However, having a Standard Business Sponsorship (SBS) comes with a set of legal responsibilities. The Department of Home Affairs (DoHA) and the Australian Border Force (ABF) regularly conduct audits and monitoring activities to ensure employers are playing by the rules. Finding out that your business is being audited can be stressful. However, if you view it through the lens of risk management, you can navigate the process without jeopardising your ability to hire international workers.

What is a Sponsorship Audit?

The Department refer to sponsorship audit as monitoring. Essentially, it is a compliance check for your sponsorship obligations to verify that your sponsored workers are being treated fairly and that you are upholding the promises you made in your SBS application. These checks can happen at any point during your 5-year sponsorship period and even up to 2 years after your sponsorship has lapsed.

How the Audit Process Works?

There are generally 2 ways the Department conducts an audit:

You will receive a formal request letter as a desk audit. You will be asked to upload specific evidence, such as payroll records, contracts and/or superannuation records for review.
Inspectors arrive at your place of business. While they often give advance notice, they do have the legal power to arrive unannounced. During a visit, they can inspect the premises, interview sponsored employees, and request to see physical records.

The “Big 3”: What Are Inspectors Looking For?

Inspectors aren’t just there to browse; they focus on 3 areas of compliance:

Salary and Benefits

Are you paying the worker the exact salary listed in the approved nomination? As of 1 July 2026, the floor for most sponsored roles (TSMIT) is $79,423. If your payroll shows you are underpaying a worker by even a few dollars, it is considered a breach. They will also verify that you are paying market rates (AMSR) to ensure local wages aren’t undercut.

Job Duties and Descriptions

If you sponsored someone as a chef, but the inspectors find them washing dishes or working as a waiter, your business is in trouble. Every sponsored worker must perform the specific tasks outlined in their ANZSCO job description. When a skilled worker ends up doing lower-level administrative work, it is a common reason for fines and a breach of obligations.

Record Keeping and Notification

The Department looks for a clear paper trail. You must have records of when the sponsored worker started and when they finished, and proof of their duties. Crucially, they will check if you notified the Department within 28 days of any major changes, such as a worker resigning or a change in your business structure.

What are the Consequences of Non-Compliance?

If an audit reveals a breach, the penalties are:

They can cancel your SBS and bar you from sponsoring anyone else for years.
You may be fine for every individual breach found.
Additionally, the Department maintains a public list of businesses that have failed to meet their sponsorship obligations. Being named can cause significant reputational damage.

How to Protect Your Business?

The best way to ensure a successful audit is to be compliant before the government gets involved. We recommend these steps:

Regularly review your payroll and job descriptions to ensure they match your visa nominations.
Keep all migration-related documents in one accessible place.
Ensure your HR and management teams understand the 28-day notification rule.
Engage an immigration lawyer who specialises in work sponsorship visas and conduct an audit to find and fix potential issues before the government does.

A Department of Home Affairs audit is a standard part of being a sponsor, but the risk is high. As an employer, being prepared is the best way to ensure that an audit remains a minor administrative task rather than a threat to your business operations.

Read our clients’ testimonials on Agape Henry Crux and Accredited Specialist in Immigration Law, Jason Ling.

How Can Agape Henry Crux Help You?

If you are unsure whether you have completed your paperwork and met your obligations, consider speaking with one of our immigration lawyers at Agape Henry Crux for a self-audit. Our team of immigration lawyers works closely with our Accredited Specialists in Immigration Law to handle highly complex matters. We recommend that you book a Migration Planning Session with our team by calling 02 8310 5230 or emailing us at info@ahclawyers.com to arrange a time.

We speak fluent English and Mandarin. If this isn’t your language, we can also help you arrange an interpreter.

Our founder and principal lawyer, Jason Ling, is recognised in the 2026 edition of The Best Lawyers in Australia™ and the 2027 edition of The Best Lawyers in Australia™. Agape Henry Crux is named as Best Immigration Law Firm 2025 - Sydney by APAC Insider Awards and in the 2027 edition of The Best Law Firms™ - Australia.

This article/presentation (“publication”) does not deal extensively with important topics or changes in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you find this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances, please contact our office.

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