ATO Data matching program continues to 2022-23

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In the age of big data, Australia’s government departments are at the forefront of utilising as much information as possible to assist them with policy planning. You only need to look at projections made in the Federal Budget on various aspects important to government, such as tax revenue and population growth to see how significant data is to estimating likely scenarios in the years ahead. Forecasts can, however, be wildly inaccurate at times…this year and the coronavirus pandemic is as good an example available as ever.

The data on visa holders and migrants is no exception, and the ATO is one government department where data matching with the information held by Home Affairs can assist in ensuring compliance with taxation and immigration laws.

The exchange of information between these two department began back in 2013. A gazette notice published this week confirms this data matching will continue through to 2023.

The data items are the same as 2013:

  • Address history for visa applicants and sponsors

  • Contact history for visa applicants and sponsors

  • All visa grants

  • Visa grant status by point in time

  • Migration agents (visa application preparer who assisted or facilitated the processing of the visa)

  • Address history for migration agents

  • Contact history for migration agents

  • All international travel movements undertaken by visa holders (arrivals and departures)

  • Sponsor details

  • Education providers (educational institution where a student visa holder intends to undertake their study)

  • Visa subclass name

The big difference is that the scope and therefore the amount of data has increased dramatically. Back in 2013, it was estimated that records for approximately 1 million individuals will be obtained. That has ballooned to records of approximately 10 million individuals each financial year. This is likely to include visitor visa holders, which supports the added objective of “support compliance activities under Australia's foreign investment rules.”

Furthermore, as most Australian employers have moved to direct reporting to the ATO every time an employee is paid, known as Single Touch Payroll (STP), the ATO will have recent information and are able to assess whether individuals and businesses are failing to meet their taxation and superannuation registration and/or lodgement obligations much faster than before STP was widespread.

Sponsors, and indeed all businesses in general, need to have sufficient systems in place to ensure they are compliant as the alternative is being found to have breached sponsorship obligations if they have sponsored a worker for a Subclass 482 - Temporary Skill Shortage visa. Among other administrative sanctions, business sponsors will find themselves listed on the register of sanctioned sponsors.

It would not be surprising if Home Affairs, Fair Work Australia, and the Australian Border Force have received referrals from the ATO for anomalies to investigate.