Daryl Maguire, 67, has pleaded not guilty to conspiring to create false and misleading visa applications for 10 Chinese nationals purporting to employ them at businesses in Wagga Wagga in the NSW Riverina region.
Prosecutors allege the visa fraud conspiracy took place from January 2013 to August 2015 and involved the regional MP's associate Maggie Wang - also known as Maggie Logan - and migration agent Monica Hao.
But Maguire didn't know about any conspiracy, his barrister Ian McLachlan told a jury in Sydney's Downing Centre District Court on Thursday.
He had a limited role identifying businesses that could be prospective employers and then referring them to Wang, he told the jury.
The 67-year-old had been a prominent politician who had often flown to China to facilitate trade with smaller businesses in the Riverina area, Mr McLachlan said.
Local business owners wanting skilled labour would approach Maguire, who would then direct them onto Wang, the jury heard.
But it was then up to Wang and Hao to collect information and documents from the employers and process visa applications, Mr McLachlan said.
While the charge Maguire to which pleaded not guilty involved sending false or misleading documents onto the Department of Immigration, there was no evidence he played any part in this, his barrister said.
In a text to Wang in January 2013, Maguire suggested she come along to a NSW Parliament House meeting related to a milk powder factory project to discuss migration.
"You need to ensure that you are on top of the regulations for immigration under the new rules," the then-MP wrote.
"You will be responsible for immigration."
There was also very little evidence showing a connection between Maguire and Hao, who used her migration agent status to submit the visa forms, Mr McLachlan said.
He added immigration law is complex and the Wagga Wagga MP would not have known any of the forms contained false or misleading information.
"If you had no idea as to the (visa) requirements, you really wouldn't have a clue what's being submitted to the government, whether it's true or not," Mr McLachlan said.
Maguire was not a migration agent required to keep updated knowledge of the law through ongoing professional development, Mr McLachlan said.
On Wednesday, prosecutor Sean Flood SC said 10 Chinese nationals applied for their visas through the employer-nominated sponsorship scheme or the regional sponsor migration scheme, both of which could eventually lead to permanent residency.
Wang and Hao sent 20 forms to the Department of Immigration falsely stating the workers would be employed for two years at the local firms that would be paying their wages.
However, some visa applicants did not turn up for work at all.
Some were still paid wages and superannuation which was reimbursed by Wang in cash, the jury heard.
Wang would also pay business owners $30,000 to $60,000 stuffed into envelopes for their part in the scheme, Mr Flood said.
The trial continues.