Australia halts Significant Investor or ‘Golden Visa’ programme under broad migration overhaul
Australia has paused applications for individuals who invest more than A$5 million ($3.3 million) into the country as part of a broader immigration policy overhaul designed to entice more skilled migrants. All applications for the Significant Investor or Golden Visa programme have been halted. Home Affairs Minister Clare O’Neil said the visa was one of many aspects of Australia’s migration system that the government plans to change in order to create a system which delivers for our country.
Investor visas similar to Australia’s have faced criticism worldwide amid allegations that they have been abused by wealthy individuals and failed to benefit the countries themselves. A key issue is that the funds involved often go into real estate or financial assets rather than productive areas of the economy.
It has been obvious for years that this visa is not delivering what our country and economy needs from a migration system, O’Neil said in a statement.
Australia’s centre-left Labor government revealed a new immigration strategy in December designed to lower new arrivals to pre-COVID levels. Among the features of the strategy were a crackdown on abuse of student visas and greater targeting of skilled migrants to fill growing gaps in the economy.
The Australian newspaper reported on Monday that the Significant Visa category would be scrapped. O’Neil flagged plans to review the visa in 2022, saying she saw little reason to retain the special immigration settings for wealthy migrants.
It’s actually costing us on average for every person, because these are people who are generally coming in at quite a late stage of their life, often at the end of their business career and coming to Australia, basically to settle down and retire, she said at the time.
The Significant Investor visa had also been criticized by Australia’s Grattan Institute think tank. A report in September 2022 found it provided little tax income for the Australian government, while costing the economy large amounts in services to the new arrivals.
The pause on the Significant Investor or Golden Visa programme is part of Australia’s broader immigration policy overhaul aimed at attracting more skilled migrants. By pausing applications for individuals investing more than A$5 million, the government hopes to create a migration system that better serves the country.
Investor visas have come under scrutiny globally due to allegations of abuse by wealthy individuals and a lack of benefits to the host countries. A significant concern is that the funds are often invested in real estate or financial assets rather than contributing to the productive areas of the economy.
Home Affairs Minister Clare O’Neil emphasized the need for change, stating that the visa has not been meeting the country’s needs. Australia’s Labour government has implemented a new immigration strategy, which includes addressing the misuse of student visas and attracting skilled migrants to fill gaps in the economy.
The Australian newspaper reported that the Significant Visa category will be discontinued. O’Neil expressed intentions to review the visa in 2022, questioning the rationale for maintaining special immigration settings for wealthy migrants.
Critics of the Significant Investor visa include Australia’s Grattan Institute think tank, which found that it generates little tax income while placing a burden on the economy through the provision of services to new arrivals.
The decision to pause the Significant Investor or Golden Visa programme is part of Australia’s efforts to reshape its immigration system. By addressing concerns and aligning the program with the country’s specific needs, the government aims to attract skilled migrants who can contribute to the economy in a more productive manner.
Australia’s migration policy overhaul seeks to rectify issues with investor visas that have been widely criticized for benefiting wealthy individuals without providing substantial benefits to the host countries. The focus is to ensure that the funds invested contribute to areas that can drive economic growth, rather than being primarily directed towards real estate or financial assets.
Home Affairs Minister Clare O’Neil acknowledged the shortcomings of the visa, emphasizing the need to create a migration system that better aligns with Australia’s needs. The new immigration strategy includes measures to address the misuse of student visas and target skilled migrants to address workforce gaps.
The discontinuation of the Significant Visa category, as reported by The Australian newspaper, indicates a shift in Australia’s approach to wealthy migrants. O’Neil intends to review the visa in 2022, questioning the rationale behind retaining special immigration settings for individuals who often settle down and retire in Australia.
In line with criticisms from the Grattan Institute think tank, the report highlights that the Significant Investor visa has not generated significant tax income for the Australian government while placing a strain on the economy through the provision of services to new arrivals.
Overall, Australia’s decision to pause the Significant Investor or Golden Visa programme is part of a broader immigration policy overhaul aimed at attracting skilled migrants who can contribute to the country’s economy in a more meaningful way. By addressing the limitations of investor visas and aligning them with Australia’s specific needs, the government hopes to create a more effective and beneficial migration system.
