Australian Natural Foodstuff Pty Ltd (Migration)

This matter concerned an appeal by Australian Natural Foodstuff Pty Ltd against a decision to cancel its approval as a standard business sponsor. The dispute arose from allegations that the company had failed to meet its sponsorship obligations, specifically by not keeping proper records and by the sponsored persons not working in their nominated occupations. The appeal was heard by Marten Kennedy, a Member of the Tribunal.

The primary legal issue before the Tribunal was whether the circumstances prescribed by the *Migration Act 1958* (Cth) and its associated regulations for the imposition of sanctions on approved sponsors existed. This involved determining if Australian Natural Foodstuff Pty Ltd had failed to satisfy its sponsorship obligations, as stipulated in Division 2.19 of the Regulations, and if the criteria for taking action under section 140M of the Act were met. The Tribunal was required to consider the totality of any breaches of obligation when deciding on the appropriate sanction.

The Tribunal considered evidence from a previous hearing and the applicant's registered migration agent. It noted that section 140M of the Act allows for various sanctions, including cancellation of sponsorship approval and barring the sponsor from future applications, if prescribed circumstances are met. Regulation 2.79, which requires sponsors to ensure sponsored persons receive terms and conditions of employment no less favourable than those provided to Australian citizens or permanent residents for equivalent work, was specifically examined. The Tribunal found that the applicant had failed to satisfy its sponsorship obligations.

Consequently, the Tribunal set aside the Department's decision and substituted its own. It ordered that Australian Natural Foodstuff Pty Ltd's approval as a sponsor for all classes be cancelled, and that the company be barred from making future applications for standard business sponsorship approval for the period from 6 July 2015 to 31 May 2017.