Visa compliance enforcement enters new era with Government data matching

The Australian Government has intensified its oversight of skilled visa holders, introducing a data-matching initiative that marks a significant escalation of employer compliance monitoring.

A one-off data exchange between the Department of Home Affairs and the Australian Taxation Office (ATO) will match visa records with payroll data. The program is focusing on sponsoring employers and subclass 482 Temporary Skill Shortage visa holders. Around 58,000 visa holders and their employers across three financial years are being reviewed, and if the program proves to be successful, it is expected to form the foundation of ongoing cross-agency compliance monitoring.

From passive audits to proactive data-driven surveillance

Information sharing between immigration authorities and the ATO is not new. The ATO has long collected visa data from Home Affairs to ensure that visa holders and sponsors fulfil their tax and superannuation obligations. In fact, a formal Data Matching Program to Enhance Compliance in the Temporary Skilled Visa Program was introduced back in January 2019.

However, this latest move takes things a step further. For the first time, Home Affairs is actively leveraging ATO payroll data to verify compliance in real time, rather than relying on complaints or delayed audits. Under this initiative, Home Affairs will compare its visa data with the ATO’s Single Touch Payroll records to identify potential breaches. This means sponsors or temporary skilled visa holders should be prepared for closer scrutiny of their employer practices. Home Affairs will assess a range of compliance areas, including:

• Correct occupation - Are temporary skilled visa holders working in their approved occupation and position?
• Authorised employer - Are visa holders only working for the sponsoring business or an approved related entity?
• Fair pay - Are visa holders being paid the amount specified in their sponsorship or nomination, and is it in line with market salary rates or the Temporary Skilled Migration Income Threshold (TSMIT)?
• Work conditions compliance - Are visa holders receiving the conditions and benefits promised in their visa obligations, including hours and entitlements?
• Accurate reporting - Are sponsors meeting their reporting obligations to Home Affairs?
• Tax and payroll alignment - Do ATO income and payroll records match what was declared in sponsorship and visa documentation?
• Timely updates - Have sponsors promptly notified Home Affairs of any significant changes to the visa holder’s role, pay or employment status?

Any gaps between what’s approved in a visa nomination and what appears in payroll data could soon trigger a compliance review. This isn’t about waiting for an audit down the track, it’s about proactive, data-driven checks becoming part of everyday oversight.

What does this mean for employers?

Compliance is no longer something you can assume. Just because no questions have been asked doesn’t mean all is well. The level of scrutiny is increasing, and payroll data is now the government’s frontline tool for monitoring.

For employers, this means it’s no longer enough to submit a compliant application at the start of a sponsorship. You need systems that hold up over time, from accurate payroll and clear contracts to well-documented changes in roles, locations or salaries.

The consequences can be significant; non-compliance, even if unintentional, can lead to visa cancellations for employees, loss of sponsorship rights, penalties and reputational damage that invites further scrutiny.

A timely reminder

Industries that rely on skilled migration, such as health, construction, IT, and hospitality, should treat this as a call to action.

Now is a good time to take a step back and review:

• Are employment contracts aligned with visa conditions?
• Are contractor arrangements legitimate and properly documented?
• Are internal controls fit for purpose?

 

Be proactive, not reactive

This program is designed to enforce compliance, protect temporary skilled workers from exploitation and ensure a level playing field for Australian businesses. By acting early, like auditing your records, aligning payroll with nominations and promptly reporting any changes,  you can avoid unnecessary risk.

Proactivity is no longer optional, it’s essential. With Home Affairs and the ATO working in partnership, enforcement will become faster, more precise and harder to challenge after the fact.

Are you compliant?

Compliance in sponsoring both workers and employers is not a set-and-forget arrangement. With the ATO and Home Affairs steadily using data-matching programs, employers need to proactively assess their compliance and ensure they have the proper systems and safeguards in place to meet their obligations.

At BDO, our migration services team helps businesses in understanding and fulfilling complex compliance obligations. We support businesses in reducing risk through compliance reviews, policy updates, and internal audits, so you can stay ahead of regulatory changes and avoid potential penalties.