heres why australias 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, 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, 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:
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.
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