On 9 January 2019, the Australian federal government announced that the Department of Home Affairs (DoHA) will be exchanging data with the Australian Taxation Office (ATO) to encourage tax and immigration compliance by business sponsors and their temporary skilled visa holders.
On 9 January 2019, the Australian federal government announced that the Department of Home Affairs (DoHA) will be exchanging data with the Australian Taxation Office (ATO) to encourage tax and immigration compliance by business sponsors and their temporary skilled visa holders.1
DoHA will be providing the name, address, and birth date of individuals who are, or were in the three most recently-completed financial years ended 30 June, holders of either of the 457 or 482 visa subclasses, as well as providing details of the these individuals’ business sponsors.
This data will be electronically matched against ATO records, and income and employment data for the relevant individuals will be provided to DoHA.
It is estimated that data relating to around 280,000 individuals will be matched.
The data matching program has been developed to assist Australian tax and immigration authorities to effectively detect, and deal with compliance risks within the visa holding population. The aim is to crack down on fraud in the temporary employer-sponsored visa programs.
The consequences of non-compliance are serious.
In addition to the financial and reputational penalties that can be imposed for tax shortfalls identified through the program, the more critical risk to multinational employers is the possibility that the organisation’s approval to sponsor such visas can be cancelled, preventing them from using foreign talent to work in Australia.
1 See: Australian Dept. of Home Affairs notice of data matching for temporary skilled visa program.
2 See: https://immi.homeaffairs.gov.au/visas/getting-a-visa/visa-listing/repealed-visas/temporary-work-skilled-457
*Please note the KPMG International member firm in the United States does not provide immigration or labour law services. However, KPMG Law LLP in Canada can assist clients with U.S. immigration matters.
The information contained in this newsletter was submitted by the KPMG International member firm in Australia.
©2021 KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.
Liability limited by a scheme approved under Professional Standards Legislation.
For more detail about the structure of the KPMG global organisation please visit https://home.kpmg/governance.
Flash Alert is an Global Mobility Services publication of KPMG LLPs Washington National Tax practice. The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.