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The Australian Health System:

Immigration Sponsorship and Legal Liabilities

Department of Immigration & Citizenship - Regulations from 1 November 2005

Sponsoring a Temporary Resident to Australia involves accepting responsibility for:
-the medical and hospital expenses incurred by the sponsored person for treatment administered in a public hospital.
-the costs of return travel to home country.
Note that these undertakings differ from those required of sponsors who lodged their sponsorship application prior to 1 November 2005.

This undertaking releases the Australian Government from any liability for the medical and hospital costs incurred in a public hospital, and places the responsibility on the Employer/Sponsor.

Employers/Sponsors can require sponsored employees to sign an employee agreement requiring the employee to maintain health insurance which is deemed acceptable to the Employer/Sponsor.

Please note that, where an applicant is working for a Sponsor on a subclass 457 visa, the Sponsor's obligations remain in force until the visa holder is granted permanent residence. This does not change if the 457 visa holder is issued with an Interim Medicare Card, as advised by Business Employment Section, Department of Immigration & Citizenship(November 2004).