New Australian Worker Protection Laws Allow Tax Checks

by Mary Swire, Tax-News.com, Hong Kong

15 September 2009

New laws to protect the rights of temporary overseas workers, and ensure Australian wages and conditions are not undermined, have come into effect.

The laws require that all new workers on subclass 457 visas must be paid market salary rates. Employers currently paying less than the market salary rate to existing subclass 457 visa holders employed in Australia will have until January 1, 2010, to commence paying market rates.

A key provision in the new laws will enable the Australian Taxation Office (ATO) to disclose information to the Department of Immigration and Citizenship (DIAC) in order to ensure correct salary levels are being paid to visa holders. In addition, information will be able to be shared with other enforcement bodies including the Fair Work Ombudsman and occupational health and safety agencies.

The new provisions for the disclosure of information will help ensure that overseas workers are being paid the right salary levels and that Australian wages and conditions are not being undermined. The sharing of information among DIAC, the ATO, the Fair Work Ombudsman, and occupational health and safety agencies will act as an effective deterrent to rogue employers and ensure that instances of unfair or unsafe treatment of temporary skilled workers come to light quickly and are dealt with appropriately.

The new laws will also enable specially trained officers with investigative powers to monitor workplaces and conduct site visits to determine whether employers are complying with the redefined sponsorship obligations. Employers found in breach of the obligations in the Migration Regulations may be liable for fines of up to AUD33,000 (USD28,000). The department will retain the ability to cancel an employer's approval as a sponsor or bar them from making applications for approval as a sponsor for a period of time.

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