Australia: ‘Golden visa’ scheme for wealthy investors axed
Australia has discontinued its “golden visa” program, which allowed affluent foreign investors to reside in the country. The decision, part of an immigration overhaul, was prompted by the government’s observation of “delivering poor economic outcomes.”
Originally designed to attract foreign business, critics contended that the scheme was being misused by “corrupt officials” for “parking illicit funds.” The program will now be replaced by visas targeting skilled workers.
Since its inception in 2012, thousands of significant investor visas (SIV) have been issued, with government data indicating that 85% of successful applicants were from China. Marketed as a means to encourage foreign investment and foster innovation, candidates were required to invest over A$5 million (£2.6 million; $3.3 million) in Australia to qualify.
Following various reviews, the government determined that the program did not achieve its primary objectives. In a December policy document, it announced the abolition of the scheme, emphasizing the creation of more visas for “skilled migrants” capable of making substantial contributions to Australia.
Minister for Home Affairs Clare O’Neil stated in a Monday release, “It has been obvious for years that this visa is not delivering what our country and economy needs.”
The decision has received approval from Clancy Moore, CEO of Transparency International Australia, who informed the BBC, “For far too long, corrupt officials and kleptocrats have used golden visas as a vehicle to park their illicit funds in Australia and arguably hide their proceeds of crime.”
The program had faced scrutiny for alleged “loopholes” and “vulnerabilities,” with even Bill Browder, credited for the creation of the Magnitsky Act, criticizing the scheme.
In 2016, a government inquiry expressed concerns about its “potential for money laundering and other nefarious activities,” and in 2022, The Australian newspaper reported that members of Cambodia’s Hun Sen regime were among those exploiting the system.
The government inquiry also found that the visas were bringing people into Australia with “less business acumen” than would have otherwise arrived, while offering tax concessions that were costing the public.
Some asset managers have pushed back on those assessments, arguing that the follow-on investment from SIVs has ended up being significantly more than the A$5m buy-in.
Australia now joins the UK, which scrapped a scheme offering fast-track residency to the mega-rich in 2022, due to concerns about the inflow of illicit Russian money.
So-called golden visa schemes have also come under scrutiny in Malta, which has been granting speedy citizenship to wealthy non-European Union nationals.
In 2022, an investigation discovered the visas being granted after people spent just days in the island nation, while the EU had raised concerns over risks of money laundering, tax evasion, and corruption.
