Working over the 6 month limit on a WHV

Hi guys, any advice on my predicament would be greatly appreciated.

I've been employed in the research sector for just about 6 months now - my contract is up next week. I took the job and moved to Australia on a 1 year WHV on the proviso that sponsorship would be forthcoming if I did well. My superiors have been keen to push the sponsorship through, but the major stumbling block has been with the University itself as appose to the immigration department. It would seem a rather ridiculous policy exists in the research sector (or at my uni at least) that sponsorship for foreigners will only be considered under a strange set of criteria - which we are struggling to fulfil.

As the sponsorship application is still with the University and has not yet reached the immigration department, I am not entitled to apply for a legitimate extension of my WHV. I am also aware of an extension for those who are a major contributor to an overrunning project that is significant to a government body. Although this applies in my case, the proposed extension is limited to a month at most. I would imagine that it will be another 3 months at least until (hopefully) my sponsorship is approved.

It has been proposed by my superiors that I can continue my work but be paid by an independent company. The degree to which the company is independent I'm really not sure, but fundamentally it is a commercial research group and not part of the university. Essentially I'd be going to work in the same building and would be reporting to the same supervisor, but would be employed by a different company.

I am of course very keen to continue my work, and am happy to sacrifice holiday entitlement, superannuation, etc while I am in this transition period. However, I'm aware that this may not be fully legitimate and would love to hear from anyone that may have, or know some who has, been in a similar situation. Do you think that I am putting my future in Australia at major risk? Or perhaps that this is a reasonable way of re-interpreting the rules?

Thanks in advance for your feedback.