This topic has been discussed numerous times in different forums. Here are excerpts posted by a moderator who also happens to be a MARA registered agent. The full thread is here: <a href="">http://www.australiaforum.com/visas-immigration/18541-190-visa-state-requirements.html</a>
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My view: you must put forth a good faith effort to find a job in the state that sponsors you. However, if you cannot find a job that suits you after such an effort, they will not stop you from looking elsewhere. At that point you are a permanent resident, and they certainly cannot force you to live in a state where you cannot find suitable work.
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<i>The requirement to live and work in the state is not strictly a condition of the visa, it's a condition of an agreement you make with the state. If you walked away from it, it's conceivable that the state could say you obtained the visa fraudulently and never had any intention of living there. But by the same token, if you cannot find work there, is it legal for them to somehow require you to work there and go broke? This opens up an entirely different set of laws (civil laws) regarding contracts, freedom of movement in a country, etc. If you find yourself not able to meet a state sponsorship obligation, the best way through that may be to work out an arrangement with the state to release you from the sponsorship agreement.</i>
<i>I wouldn't expect an issue at citizenship since the state sponsorship obligations do not exist in federal immigration law and are not a part of your visa with DIAC. Unless they're going to accuse you of some sort of fraudulent intent in getting the visa, I don't see how a state sponsorship authority would have any way of causing a problem with your visa, or causing an issue with a citizenship application.</i>
Hope this sheds some light for those who are finding themselves in the same situation π
Cheers!