Risk: Self-Sponsored Business Nomination

As of December 2015, Department Policy states that a nomination applications may be refused if it is found that a position was created solely to secure only a migration outcome.

Where the Director is also the visa applicant, or the visa applicant is a relative or person associate of an officer of the sponsoring business, it is likely a refusal will be imminent.

Consistently, the Department may request current and historical ASIC Extracts which will show the Directors and Shareholders of the Company.

The Department will also closely scrutinise applications where:

– the business has been operating for a short period.
– the business has a low business turnover.
– the business has no Australian employees.

Considering the above is only Department Policy, there have been some decisions in the Administrative Appeals Tribunal which have set aside such refusals by the Department in such cases.

Thus, there is no umbrella approach to self-sponsored applications (as yet) and those considering self-sponsored applications must oblige to obtain legal advice from a well-informed migration practitioner before proceeding with such an application

By Farhan Rehman, Partner at RSG Lawyers.

Footnotes available upon request.

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