The Government is implementing measure in attempt to clamp down on fraud, tax avoidance, superannuation requirements and working without proper permission.  This may impact you directly if you are a visa holder.

The Australian Tax Office (ATO) has announced that around 20 million visa holders are to be scrutinised under a data matching scheme with the aim of catching those who are avoiding tax, falling foul of superannuation compliance and working illegally.

What it means

Under the data matching scheme, the ATO will become privy to your tax, bank, social security and wages and will be able to share this information with the Department of Home Affairs (DHA) (Immigration).

This means it will be easier for officials to detect anyone who is flouting their obligations be that a visa holder or an employer.

The Federal Government will look at records and review information on not just sponsors and visa holders but also migration agents and education providers.  Officials will be able to find out where visa holders have travelled, where they have worked or studied and the payments they have received.

It could also mean that those who left Australia may be entitled to superannuation which they didn’t know about.

How will it affect employers and visa holders?

If you claimed that you undertook some regional work as part of your Working Holiday Visa but didn’t actually carry it out, if that information comes to light, it could prevent you from extending your visa.

If you're employer and an approved sponsor, then you have a duty to keep records of wages and produce pay slips. Even if you pay cash, this needs to be documented.

Subclass 457 and 482 visa holder employees who do not declare their wages to the ATO will be found to be in breach of their visa conditions and this may lead to visa cancellation.

Data matching will pick up any discrepancies between Business Activity Statements (BAS), tax assessments, bank records between employers and employees.  

If evidence emerges that you’re an employer who offers sponsorship and are paying visa holders below average wages, then it could result in your sponsorship approval being cancelled.

When will the audit take place?

This audit will take place over the next three years and is part of a recent Australian Government drive to pay closer attention to the information it holds and be able to share records to investigate fraud and non-compliance.

Should you have any questions about the above information or if you want to discuss your particular circumstances in more detail please do not hesitate to contact us for a confidential discussion on (03) 9614 7111.