Data matching boosts employer compliance on skilled visa workforce

Did you know your company’s payroll data could be cross-checked with visa records every day? The Australian Government has been monitoring employer compliance behind the scenes for over a decade, comparing visa and payroll data to uncover breaches. 

Since 2009, the Australian Government has been investing in data-matching programs to improve oversight of employment practices and ensure compliance with workplace and visa-related obligations. The long-standing collaboration between the Department of Home Affairs (DHA) and the Australian Taxation Office (ATO) is designed to protect the integrity of Australia’s skilled migration program and ensure fair treatment of overseas workers. 

For the 2024–25 financial year, $1.9 million had been allocated to support the continuation of these efforts. The program targets skilled visa holders across various visa categories, using data-matching to identify potential non-compliance by both employers and workers. 

What the program involves 

The initiative draws on a range of data, including Single Touch Payroll (STP) submissions, tax file numbers, and visa holder records. It allows government agencies to: 

• Confirm employers are paying appropriate wages and superannuation in line with their obligations

• Ensure skilled visa holders are working for the correct sponsor and in the approved role. 

• Monitor eligibility for superannuation pay outs upon departure from Australia. 

• Identify misuse of Australian Business Numbers (ABNs) when visa holders are incorrectly engaged as independent contractors. 

• Detect incorrect income declarations or tax refund claims. 

Ongoing and historical monitoring 

This program has been operating consistently for over a decade, with data-sharing in place for financial years 2019–20 through to 2024–25. Between 2019–20 and 2022–23, data was collected twice per year, typically in January and August. Since 2023–24, data ingestion has shifted to a daily process, enabling near real-time monitoring of employment and visa-related information. 

This consistent and evolving approach has allowed authorities to proactively identify compliance risks across skilled visa holders and respond with timely enforcement where necessary. 

Data retention and security 

The ATO retains each financial year’s data for two years from the date the final verified files are received from Services Australia. Once no longer required, data is destroyed in accordance with the Archives Act 1983 and the relevant records authorities issued by the National Archives of Australia. These processes ensure that personal information is handled responsibly and in line with national privacy obligations. 

What employers should be doing 

Employers engaging skilled workers on temporary visas must ensure they are meeting all regulatory requirements. This includes: 

• Paying market-appropriate wages and superannuation. 

• Ensuring workers are in the nominated role and location. 

• Notifying the Department within 28 days of changes, such as job role updates, cessation of employment, insolvency, or restructuring. 

Failure to comply can result in warnings, financial penalties, suspension of sponsorship approval, or visa cancellation for affected employees. Non-compliance records are retained and may affect future sponsorship applications. 

Data protection and privacy 

All data is exchanged securely between departments, in line with the Privacy Act 1988. Personal information is handled responsibly, and any data not used for compliance is securely deleted within 90 days. 

A reminder for all employers 

While the spotlight is often on new immigration rules, this data-matching program has been operating quietly but consistently for years—and it’s not going away. With more automation and real-time data sharing, enforcement is becoming faster and more accurate. 

Employers who sponsor or engage skilled visa holders should continue reviewing their HR systems, payroll practices, and internal reporting to avoid unintended compliance breaches. 

For more information on your obligations as an approved sponsor, visit the DHA’s Sponsorship Obligations page or contact Absolute Immigration at aisupport@absoluteimmigration.com for expert advice and assistance.