Australia’s Luxury visa scheme for the wealthy falls short
What Happened to the Investment Visa in Australia?
Australia recently made headlines by scrapping a significant investment visa aimed at foreign investors. This decision came after it was found that many applicants paid less tax and contributed less to the economy compared to other skilled visa holders. The program included those willing to invest millions, such as $2.5 million and even up to $5 million, but ultimately these investments were deemed less beneficial.
Understanding the Business Innovation and Investment Program
The Business Innovation and Investment Program was designed to help entrepreneurs and investors gain permanent residency (PR) in Australia through several subclass visas. The subclass 188 visa is at the heart of this program, with four main streams catering to different types of investors. They include:
- A significant investor stream for those investing at least $5 million.
- An investor stream for individuals putting in a minimum of $2.5 million.
- An innovation stream for business owners with an annual turnover of at least $750,000 and $1.25 million in assets.
Unfortunately, it was revealed that holders of these visas were earning significantly less than skilled migrants. For example, the average taxable income for Business Innovation and Investment Program visa holders was only $25,000. In comparison, other skilled workers averaged $64,000.
Why Did This Visa Get Scrapped?
The Home Affairs Department noted that Australia was already attracting plenty of foreign capital, meaning the impact of these investment visas was minimal. Between January 2018 and December 2022, the total investment from more than 1,000 significant investor grants was around $5.385 billion, a drop in the ocean compared to the total foreign investment pool of over $20 trillion.
In July 2024, the new Home Affairs Minister, Tony Burke, officially scrapped this program. However, there were already 15,000 primary and secondary applications in a backlog, illustrating the demand for this visa subclass.
Visa Options for International Job Seekers
If you’re an international job seeker considering a move to Australia, there are other visa options available. The 482 visa allows you to work for an employer who sponsors you, while the 189 visa and 190 visa are pathways to PR through skilled migration.
To be eligible for these skilled visas, you may need to meet a specific income threshold known as the Temporary Skilled Migration Income Threshold (TSMIT), which is set at $53,900 for most visas. This ensures that migrant workers contribute effectively and sustain their living in Australia.
Wrapping Up
The recent changes surrounding investment visas highlight the complexities of Australia’s immigration policies. For job seekers, understanding these trends and available pathways can be vital in your journey to settling in Australia. Keep an eye on policy shifts and explore potential sponsorship opportunities.
Have your say!
Got a question, opinion, or experience to share about working in Australia? Leave a comment below and join the conversation.
Thinking about moving to Australia? Have questions or need help?
Join our free and supportive community here at Oz Visa Forum.
Post in our forums to get advice and support from people who’ve already made the move Down Under.
Not sure where to start? Click here to get started
Responses