In what may well be Peter Dutton’s last major move as immigration minister, legislation was introduced to the Parliament to make it a criminal offence for a sponsor to be paid by a visa applicant in return for securing a migration outcome.

The Migration Amendment (Charging for a Migration Outcome) Bill 2015 amends the Migration Act 1958 ('the act') to introduce a new criminal and civil penalty regime that will make it unlawful for a person to ask for, receive, offer or provide payment or other benefits in return for a range of sponsorship related events. The bill also allows visa cancellation to be considered where the visa holder has engaged in such conduct, referred to as 'payment for visas' conduct.

'Payment for visas' conduct is not currently unlawful. However a key recommendation of the independent review into the subclass 457 program recommended that legislation is introduced to strengthen the integrity of the program by allowing action to be taken where 'payment for visas' conduct has occurred.

In his second reading speech, Mr Dutton noted that 'payment for visas' conduct may occur through an employer offering to sponsor a visa applicant in return for a payment or benefit. It may occur before the applicant applies for a visa or during the visa holder's stay in Australia. Evidence obtained through monitoring sponsors indicates that the sponsor and applicant are complicit in the majority of 'payment for visas' activity. Employers may also exploit an employee by requiring payment in return for an ongoing sponsorship.

The bill will amend the act to make it a criminal offence for a sponsor or other third party to ask for or receive a benefit in relation to a sponsorship related event. The offence will be punishable by a maximum of two years imprisonment or a fine of up to 360 penalty units, which currently equates to $64,800 for an individual person or five times higher—$324,000—for a body corporate.

The bill introduces civil penalties applicable to a sponsor, visa applicant or any other third party who asks for or receives, or provides or offers a benefit in relation to a sponsorship related event. The maximum pecuniary penalty is 240 penalty units, which currently equates to $43,200 for an individual person or five times higher—$216,000—for a body corporate.

The bill defines 'benefit' in wide terms to include any payment or deduction, and any kind of real or personal property, advantage, service or gift. It does not include payments of reasonable amounts for the provision of a professional service such as by a migration or recruitment agent.

The Bill also introduces a new discretionary power to allow for cancellation of a visa where the visa holder has engaged in 'payment for visas' activity.

In a media release, Assistant Minister for Immigration Michaelia Cash warned, 'Unlawful arrangements whereby payment, inducements or other incentives are promised or exchanged to try and achieve a migration outcome will not be tolerated by this Government...The practice of giving or receiving a benefit in return for visa sponsorship can have serious detrimental effects including possible exploitation, undermining of Australian pay and conditions and can damage the integrity of Australia's migration programmes.