How Payroll Data Monitoring Affects Employers of Skilled Visa Holders

Did you know your business’s payroll data could be matched with visa records daily?

For more than a decade, the Australian Government has been quietly monitoring employer compliance behind the scenes, using advanced data-matching to compare payroll records with visa information. If your business employs skilled visa holders, this affects you.

A Longstanding Compliance Program

Since 2009, the Department of Home Affairs (DHA) and the Australian Taxation Office (ATO) have worked together to uphold the integrity of Australia’s skilled migration program. This collaboration uses a powerful data-matching initiative to monitor visa and employment compliance across a wide range of industries.

In the 2024–25 financial year alone, the government has allocated $1.9 million to continue supporting this initiative. The program targets temporary skilled workers and their employers, helping uncover breaches such as incorrect pay, unauthorised work arrangements, and misuse of visa conditions.

What’s Being Monitored

The system draws on data from Single Touch Payroll (STP), tax file numbers, and visa records. These are then analysed to:

Confirm that visa holders are being paid correctly and receiving superannuation
Verify that workers are employed in the correct role and with the approved sponsor
Monitor eligibility for superannuation refunds upon departure
Identify misuse of ABNs (for example, when workers are incorrectly classified as contractors)
Flag incorrect income declarations or suspect tax returns

Daily Checks in Real-Time

Previously, payroll data was collected twice a year—usually in January and August. But since the 2023–24 financial year, the system has moved to daily data ingestion. This means authorities can now access near real-time information to detect compliance issues faster than ever before.

With this shift, businesses can no longer rely on the assumption that minor inconsistencies or delays will go unnoticed.

What This Means for Employers

If you sponsor skilled workers or employ visa holders, you need to ensure your business is fully compliant with Australian immigration and workplace laws. Key obligations include:

Paying the correct market rate salary and superannuation
Ensuring workers are only performing duties listed in their approved visa nomination
Keeping visa holders in the approved location of employment
Notifying the Department of Home Affairs within 28 days of any changes (including role changes, terminations, insolvency, or business restructuring)

Non-compliance can result in serious consequences: financial penalties, sponsorship suspension, or even visa cancellation for the employee. Additionally, a poor compliance history may affect your ability to sponsor workers in the future.

What About Data Privacy?

Understandably, many employers and visa holders have questions about how this payroll data is stored and used. Here’s what you need to know:

All data is exchanged securely between agencies and handled in accordance with the Privacy Act 1988
If the data isn’t used for compliance purposes, it is securely destroyed within 90 days
Any retained data is kept only as long as necessary and destroyed according to the Archives Act 1983

Why This Matters More Than Ever

With real-time payroll data monitoring now in place, it’s no longer a matter of if a compliance issue will be flagged but when. Even small administrative oversights could lead to scrutiny.

The good news? With the right systems, processes, and support in place, your business can stay ahead of these changes.

How AVIE Can Help

At Australian Visa & Immigration Experts (AVIE), we work closely with businesses of all sizes to manage skilled visa sponsorships and maintain full compliance with government regulations.

Whether you’re navigating sponsorship obligations, preparing for an audit, or managing a business restructure, we’re here to help you minimise risk and keep your workforce secure.

Published: 21 July 2025