Carey Group Quarterly Newsletter

Visa Sponsorship Under Scrutiny: What the ATO–Home Affairs Data Sharing Means for You

The Australian Government has intensified its oversight of skilled visa holders and their sponsoring employers through a powerful new data-matching initiative between the Department of Home Affairs and the Australian Taxation Office (ATO). This move marks a significant shift in how employer compliance is monitored – from passive audits to real-time, data-driven enforcement.

What’s Changing?

Under this program, visa records are being cross-checked against Single Touch Payroll (STP) data to verify that:

• Employers are paying the correct salary.
• Visa holders are working in their nominated occupation.
• Sponsorship obligations are being met throughout the visa term.

The initiative currently targets over 58,000 subclass 482 visa holders and their employers, but its scope may expand to other visa subclasses if successful.

Why It Matters for Employers

Employers sponsoring skilled migrants must now ensure:

• Accurate payroll records that match visa nominations.
• Timely reporting of changes in employment, duties, or business structure.
• Compliance with salary thresholds and visa conditions.

Any discrepancies – such as underpayment, role changes, or off-the-books work – may trigger investigations, audits, or even penalties. The Department of Home Affairs can now receive real-time alerts when a visa holder is removed from payroll or paid below the nominated salary.

Implications for Visa Holders

For skilled migrants, this means:

• Greater protection from exploitation.
• Assurance that employers are held accountable.
• Increased transparency in the sponsorship process.

However, visa holders must also ensure they are working only for their approved sponsor and within the scope of their nominated role. Breaches could affect visa status or future applications.

What Businesses Should Do Now

With this level of scrutiny, businesses should:

• Review employment contracts and job descriptions.
• Ensure payroll systems are up-to-date and compliant.
• Maintain clear documentation of sponsorship obligations.
• Notify the Department of any changes within 28 calendar days.

Industries with high reliance on skilled migrants – such as health, construction, IT, and hospitality – are especially urged to act now.

The Bottom Line

This data-sharing program signals a new era of proactive compliance enforcement. Sponsoring a visa holder is no longer just a paperwork exercise – it’s a commitment that’s being monitored in real time.

Stay informed. Stay compliant. And make sure your records tell the right story.