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MA alerts its members regarding rebates to 457 business sponsors

MA has received queries from members about rebates to 457 business sponsors for training benchmark contributions, recently offered by Gold Coast Institute of TAFE (GCIT).  The offer has raised concern about compliance with the DIBP training benchmark requirements.

MA has researched this issue and provides the following advice to its members.

The offer of a rebate to business sponsors will act to invalidate the statutory requirements for the relevant contribution required by the Act and the Regulations.  The resultant receipt is untrue and constitutes a false statement caught by section 234 of the Migration Act 1958.

Put simply, if a rebate is paid to the business sponsor then their requirement to pay a designated amount is not met and thus invalidates the relevant attempt to meet the statutory requirement.

Please note that Training Funds can pay commission to Migration Agents for client referrals.  Commission arrangements are best managed through a Referral Agreement.  The Agreement should clearly set out the obligations of both parties, especially the requirement for Migration Agents to disclose commission to their clients, in compliance with Part 2.2 of the Code.

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  • Liana - Allan
    Liana - Allan Friday, 23 May 2014

    And then I just received an email with this in it.....
    Every Business Sponsors Training Plan* paid in full by June 30 2014 receives a bonus 10.1" Android Tablet valued at $299!
    *Plan minimum $1500

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