Employers could face jail time or hefty fines if they charge foreigners for sponsorship on temporary skilled work visas.
Legislation making it illegal to give or receive a benefit to exploit the 457 visa program passed parliament on Wednesday after the federal government made a deal with the crossbench to review some provisions in 18 months.
Government minister Nigel Scullion says the new laws protect overseas workers from exploitation and protect Australian jobs, wages and working conditions.
Labor, with Greens support, failed to make a raft of amendments to the legislation.
Opposition frontbencher Kim Carr wanted the measures extended to student and working holiday visas with increased penalties for sponsors and a provision to protect whistleblowers.
Labor also wanted visa applicants who have been the subject of human trafficking, forced labour or slavery to be exempt from penalties.
