L & Z Restore Massage Pty Ltd (Migration)

This matter concerned an appeal by L & Z Restore Massage Pty Ltd against a decision to cancel its sponsorship approval. The dispute arose from the applicant's failure to ensure that a primary sponsored person, Mr Ping Huang, worked only in the nominated occupation of Massage Therapist. The delegate also found that the applicant no longer satisfied the prescribed criteria for approval or variation of the sponsorship, specifically in relation to regulation 2.91(2) of the Migration Regulations 1994. The decision was reviewed by the Administrative Appeals Tribunal.

The Tribunal was required to determine whether the circumstances prescribed under the Migration Regulations 1994 for taking action against an approved sponsor existed, and if so, what action, if any, should be taken under section 140M of the Act. Specifically, the Tribunal had to consider whether the applicant had failed to satisfy a sponsorship obligation under regulation 2.89, and whether the applicant no longer met the criteria for sponsorship approval or variation under regulation 2.91(2). The Tribunal was also tasked with applying the relevant criteria set out in regulations 2.89(3) and 2.91(3) to determine the appropriate sanction.

In its reasoning, the Tribunal found that the applicant had indeed failed to satisfy a sponsorship obligation by not ensuring the primary sponsored person worked in the nominated occupation. The Tribunal also found that the applicant no longer met the prescribed criteria for sponsorship. Applying the criteria for determining action, including the nature and severity of the failure, the impact on another person, and the steps taken to rectify the situation, the Tribunal concluded that it was not reasonable to disregard the adverse information. Despite the failure being a one-off incident, the Tribunal determined that an action under section 140M(1)(c) was warranted.

Consequently, the Tribunal set aside the delegate's decision and substituted a new decision to bar the applicant for a period of three months from sponsoring any more people under the terms of its existing approval as a standard business sponsor.