Can a director be personally fined for sponsor breaches in Australia in 2026?
How personal fines, bans and name publication apply to individual sponsors and directors who breach Australian sponsorship obligations.
The published sanctions set separate amounts for a body corporate and for an individual, so where a person is the sponsor in their own name — for example a sole trader or a partner — the penalty is issued to that person personally; the Department's pages do not set out a separate rule making a director of a corporate sponsor personally liable for the company's breaches. According to the Department of Home Affairs' Sponsor responsibilities page, an infringement notice issued to an individual carries a specified financial penalty of $15,840 for each failure, and a court can impose a civil penalty of up to $79,200 for an individual for each failure (against up to $396,000 for a body corporate). Separately, under the Migration Act 1958, serious, deliberate or repeated breaches can attract fines of up to $131,040 (360 penalty units) and up to five years' jail, according to the Department's Information for employers and labour hire organisations page.
What does "personally liable" actually mean here?
The published sanctions distinguish between a body corporate and an individual, rather than setting out a separate test for directors. Where a person is proceeded against as an individual — a sole trader or partner who sponsors in their own name, or an individual the Department deals with directly — the individual figures are the ones that apply, and it is the person's own money that meets the penalty.
That matters even when a company is involved, because the consequences are not only financial. The Department's employer page states that if you are penalised for exploiting migrant workers, your business name or your personal name can be published on the register of sanctioned sponsors. A fine that only the company pays still leaves reputational exposure attached to a named person.
This article describes how the published rules work; it is general information, not advice on your own position, and the official pages remain the authority on current amounts and outcomes.
How much can one person be fined?
| Sanction | Individual | Body corporate |
|---|---|---|
| Infringement notice, per failure | $15,840 | $79,200 |
| Court-imposed civil penalty, per failure | up to $79,200 | up to $396,000 |
The Department presents the infringement notice amounts as examples of a "specified financial penalty", so the figure on a particular notice depends on the obligation breached.
Is the fine per breach or per investigation?
Per failure. The Department states both the infringement notice and the civil penalty figures "for each failure", so one monitoring visit that uncovers several problems — unpaid wages, a different position from the approved nomination, and a failure to notify a change — can be counted as several failures rather than one.
Sanctions also stack. The Department's Sponsor responsibilities page says more than one sanction can be imposed, and lists the range available:
- cancellation of approval as a sponsor
- a ban on sponsoring other workers
- a ban on making future applications for approval as a sponsor
- an infringement notice with a specified financial penalty
- civil penalties imposed by the courts
- a compliance notice requiring you to address alleged breaches
- an enforceable undertaking, a legally binding written agreement between the sponsor and the Department of Home Affairs / Australian Border Force
A single set of facts can therefore produce an infringement notice, a compliance notice and a ban at the same time.
What happens beyond the fine?
The Department's employer page sets out what can follow a breach of the Migration Act: you can be directed to take certain action or stop doing something, be fined, be banned from employing migrant workers for a defined period and declared a "prohibited employer", and face other consequences including criminal prosecution and a civil penalty.
The prohibited employer scheme is the one that reaches individuals directly. The Minister for Immigration may designate an individual or a corporation as a prohibited employer. Once designated, you cannot employ any new temporary visa holders, and your business name is published on the Australian Border Force website. Temporary visa holders already working for you at the time of the declaration may continue if they wish.
For serious, deliberate or repeated breaches of the Migration Act, the penalties include up to five years' jail and fines of up to $131,040 (360 penalty units). Breaching a prohibition itself can lead to criminal prosecution, up to five years' jail, a fine of up to $131,040 (360 penalty units), or both.
How long can a personal ban last?
The length depends on the finding against you:
| Finding | Maximum length of prohibition |
|---|---|
| Human trafficking and modern slavery | No maximum length |
| A criminal offence other than human trafficking or modern slavery | Up to 10 years |
| All other migrant worker sanctions | Up to 5 years |
Before a declaration is made, you receive a letter inviting you to explain why you should not be declared a prohibited employer. Your response is considered and a decision is made; the Department states that the timeframe for responding and any rights to seek review of the decision are explained to you at that point.
Does using a labour hire company move the risk away from you?
No. The Department's employer page states that using a labour hire organisation does not free you from your obligations to migrant workers — you must still know and follow the law and ensure workers are treated fairly. The page suggests considering a clause in your contracts with labour hire providers requiring them to check visa conditions through VEVO and to ensure migrant workers are paid correctly and treated fairly under Australian law, including the Fair Work Act 2009 and the Migration Act.
What obligations trigger these penalties in the first place?
The obligations most often breached, as described on the Department's employer page, include paying a sponsored worker less than the salary agreed when the visa was granted, taking money from their pay for sponsorship, recruitment or migration agent costs, making them do a different job from the approved nomination, and forcing them to work too many hours. It is also against the law to keep a migrant worker's passport, threaten their visa or future visa applications, ask for money in exchange for sponsorship, or pressure them to break their visa conditions.
Sponsors also carry a standing notification duty: the Department must be told if your business circumstances change or if there is a change relating to the person you are sponsoring. The Sponsor responsibilities page lists two channels — emailing sponsor.notifications@abf.gov.au, or completing the sponsor changes form in ImmiAccount. An infringement notice, once issued, can be paid using BPAY.
Frequently Asked Questions
Can a director be fined personally if the company holds the sponsorship?
The published sanctions set penalty amounts for a body corporate and for an individual, rather than a separate director test, and a personal name — not only a business name — can be published on the register of sanctioned sponsors. Whether an individual is proceeded against depends on the circumstances, and the Department's pages do not describe how that decision is made.
Is the fine a one-off, or can it be charged several times?
Both the infringement notice and the civil penalty amounts are stated "for each failure", so multiple breaches found in the same matter can each be counted. The Department also confirms that more than one type of sanction can be imposed at once.
What is the difference between an infringement notice and a civil penalty?
An infringement notice is issued by the Department and imposes a specified financial penalty; the Department gives $15,840 for an individual per failure as an example. A civil penalty is imposed by a court and can reach $79,200 for an individual per failure. An infringement notice can be paid using BPAY.
Can sponsorship breaches lead to jail?
Yes, for serious, deliberate or repeated breaches of the Migration Act, where penalties include up to five years' jail and fines of up to $131,040 (360 penalty units). Breaching a prohibition order carries the same maximum jail term and fine, or both.
Will my name be made public?
It can be. If you are penalised for exploiting migrant workers, your business name or your personal name can be published on the register of sanctioned sponsors, and a prohibited employer's business name is published on the Australian Border Force website.
If I am banned, do my current sponsored workers have to leave?
No. Temporary visa holders already working for you when the declaration is made may continue working for you if they wish. The ban applies to hiring new temporary visa holders.