ZYZ PTY LTD (Migration)

This matter concerned an application for review by ZYZ Pty Ltd (the applicant) of a decision by the Department of Home Affairs to take action under section 140M of the *Migration Act 1958* (Cth). The applicant, an approved standard business sponsor, had failed to satisfy certain sponsorship obligations, including the underpayment of one employee and the non-payment of superannuation contributions to another. Additionally, the applicant had provided false or misleading information. The review was heard by P. Maishman of the Administrative Appeals Tribunal.

The Tribunal was required to determine whether it would be unreasonable to take action under section 140M of the Act, considering the applicant's failures to satisfy sponsorship obligations and its provision of false or misleading information. This involved assessing various criteria outlined in the *Migration Regulations 1994*, including the nature and severity of the failures, whether they were intentional, reckless, or inadvertent, the impact on other persons, and the applicant's cooperation and steps taken to rectify the issues. The Tribunal also considered the validity of a non-disclosure certificate issued under section 375A of the Act.

The Tribunal found that while prescribed circumstances for taking action existed, it would be unreasonable to do so. The Tribunal accepted the evidence of Mr Song, the applicant's director, that the sponsorship failures were inadvertent and not designed to take advantage of workers or gain a commercial advantage. Mr Song's inexperience in running the business, coupled with challenging COVID-related trading conditions and personal health concerns for his wife, contributed to the errors. The Tribunal was satisfied that the actions were done in good faith and that the sponsorship bar period had now passed. The Tribunal also found the section 375A certificate to be valid, noting that relevant information had been disclosed to the applicant.

Consequently, the Tribunal set aside the decision under review and substituted a decision not to take one or more of the actions specified in section 140M of the *Migration Act 1958* (Cth).