Australia Scraps 'Golden Visa' Initiative for Wealthy Income Propellers
Australia Abandons "Golden Visa" Program, Shifts Focus to Skilled Migrants
In a significant shift, Australia has decided to discontinue its "golden visa" program, a move that has been long anticipated due to concerns surrounding illicit financial flows, insufficient benefits to the local economy, and potential for abuse by wealthy applicants. The decision aligns with the UK's move to abolish a fast-track residency scheme for the super-wealthy, due to similar concerns about the influx of illicit money.
The golden visa program, which provided affluent foreign investors with the privilege to reside in the country, was terminated primarily due to these concerns. In its place, Australia is focusing on skilled migration streams, with an emphasis on visas for individuals capable of making substantial contributions to the country.
The replacement for the golden visa program will focus on introducing more visas for skilled workers. The Australian migration strategy for 2024-2025 prioritizes skilled workers through various visa streams, including Employer-Sponsored, Skilled Independent, Regional, and State/Territory Nominated visas. In 2024-2025, Australia plans to grant 185,000 permanent resident visas primarily through skilled migration routes to align immigration with labor market needs, especially in priority sectors and regional areas.
The skilled visa programs have detailed eligibility criteria, including occupations on priority skills lists, points-based assessments, and state nominations. These measures aim to ensure migrants fill genuine skills shortages rather than simply investing capital for residency.
The discontinuation of the golden visa program has been met with approval by some, including Clancy Moore, CEO of Transparency International Australia. However, detractors have consistently contended that the program was exploited by corrupt officials for the purpose of parking illicit funds.
Since its initiation in 2012, the Significant Investor Visa (SIV) program has granted thousands of visas. According to government statistics, 85% of successful applicants for the SIV program originated from China. Candidates for the SIV program were required to invest over A$5 million in Australia to qualify.
There have been allegations that the SIV scheme fell short of its primary goals, with the inquiry finding that the visas were attracting individuals with less business acumen. Furthermore, the program offered tax concessions that were a burden on the public.
The scrutiny of the golden visa program is not unique to Australia. Similar programs have faced scrutiny in Malta, with concerns raised about money laundering, tax evasion, and corruption. Bill Browder, a key figure behind the Magnitsky Act, has criticized the golden visa scheme. In 2022, The Australian reported that individuals associated with Cambodia's Hun Sen regime exploited the golden visa system.
In 2016, a government inquiry raised concerns about the potential for money laundering in the golden visa program. These concerns, along with those related to security risks and social integration challenges, have led to the decision to eliminate the SIV program and shift towards creating visas for "skilled migrants" capable of making substantial contributions to Australia.
In response to concerns about illicit financial flows and potential abuse, Australia has decided to shift its focus from the golden visa program to introducing more visas for skilled workers, with the aim of ensuring migrants can make substantial contributions to the country's economy and labor market. This new approach aligns with the Australian migration strategy for 2024-2025, which prioritizes skilled workers and business innovation, and hopes to address issues of money laundering, tax evasion, and corruption that were associated with the previous golden visa program.
