Here’s Why Australia’s Golden Visa is Causing Chaos Among Migrants

Last updated on February 12th, 2024 at 06:48 am

Australia’s so-called “golden visa”, which granted wealthy overseas investors the right to live in the country, has been axed by the government, sparking chaos and confusion among migrants who had applied or planned to apply for it. 

The visa, which required a minimum investment of A$5m (£2.6m;$3.3m) in Australia, was scrapped in an immigration overhaul that aimed to prioritize skilled workers and address the economic and social challenges posed by the COVID-19 pandemic.

The Golden Visa Scheme and Its Problems

The golden visa scheme, officially known as the Significant Investor Visa (SIV), was introduced in 2012 as a way to attract foreign capital and talent to Australia, and to boost its competitiveness and innovation. The scheme offered a fast-track pathway to permanent residency and citizenship for high-net-worth individuals who invested in specific sectors and projects in Australia, such as infrastructure, venture capital, and emerging industries.

However, the scheme was widely criticized for its poor design and outcomes, as well as its potential for abuse and misuse. Some of the problems with the scheme were:

The scheme failed to deliver the expected economic benefits for Australia, as most of the investments were passive and low-risk, such as government bonds and real estate, which had little impact on job creation, productivity, and growth. The scheme also offered generous tax concessions and exemptions to the investors, which reduced the public revenue and increased the fiscal burden.

The scheme created social and environmental issues for Australia, as it contributed to the overheating and distortion of the housing market, especially in Sydney and Melbourne, where most of the investors settled. The scheme also increased the inequality and resentment among the local population, who felt that the investors were buying their way into the country and enjoying privileges and advantages that they did not deserve or earn.

The scheme facilitated money laundering and corruption, as it allowed the investors to transfer and hide their illicit funds and assets in Australia, without proper scrutiny and oversight. The scheme also attracted some dubious and undesirable individuals, such as corrupt officials, criminals, and kleptocrats, who used the visa as a means to escape justice and accountability in their home countries.

The Immigration Reform and Its Implications

The immigration reform, which was announced in December 2020 and implemented in January 2024, abolished the golden visa scheme, along with other investor and business visas, and replaced them with a new and streamlined Global Talent Visa (GTV), which targets highly skilled and talented migrants who can contribute to Australia’s economic recovery and future growth. The reform also introduced a new points-based system, which assesses the applicants’ skills, qualifications, experience, and English proficiency, and allocates them to different streams and categories, such as innovation, science, technology, engineering, mathematics, and arts.

The immigration reform has significant and mixed implications for the migrants who had applied or planned to apply for the golden visa, as well as for the Australian society and economy, such as:

• Disrupting and disappointing the existing and prospective applicants: The immigration reform has disrupted and disappointed the existing and prospective applicants for the golden visa, who had invested or intended to invest millions of dollars in Australia, and who had expected to obtain permanent residency and citizenship in return. The reform has left them in a state of uncertainty and limbo, as they have to either withdraw or reapply for the new visa, which has different and stricter criteria and conditions.
• Improving and diversifying the quality and quantity of migrants: The immigration reform has improved and diversified the quality and quantity of migrants who come to Australia, as it focuses on attracting and retaining the best and brightest minds and talents from around the world, who can bring innovation, creativity, and diversity to the Australian society and economy. The reform has also increased the competitiveness and attractiveness of Australia as a destination for skilled migration, as it offers a clear and fair pathway to residency and citizenship.
• Enhancing and balancing the economic and social benefits and costs: The immigration reform has enhanced and balanced the economic and social benefits and costs of migration for Australia, as it ensures that the migrants who come to the country are aligned with its needs and priorities, and that they contribute more than they consume. The reform has also reduced the risks and challenges of migration for Australia, such as money laundering, corruption, housing affordability, and social cohesion.

Australia’s golden visa, which granted wealthy overseas investors the right to live in the country, has been axed by the government, causing chaos among migrants who had applied or planned to apply for it. The visa, which required a minimum investment of A$5m in Australia, was scrapped in an immigration overhaul that aimed to prioritize skilled workers and address the economic and social challenges posed by the COVID-19 pandemic. 

The reform has significant and mixed implications for the migrants, as well as for the Australian society and economy, as it seeks to improve and diversify the quality and quantity of migration, and to enhance and balance its benefits and costs.