Author Archives: aesadmin

Minister to get powers to revoke citizenship

Regardless of whether a crime is proven, the minister for immigration will be allowed to strip the Australian citizenship of dual-nationals, under proposed amendments to the Citizenship Act.

The intended changes are reportedly aimed at people with links to terrorist groups. The government has started a broad review of Australian citizenship and is looking to tighten that grant criteria as part of its measure to counter radicalisation and safeguard the nation’s social cohesion, according to a report in The Australian.

“Under the legislation that we intend to introduce in the next few weeks, if the minister is satisfied …, he may, subject ultimately to judicial review, strip the Australian citizenship from those individuals and obviously they will then no longer have an entitlement to return to Australia,” announced Prime Minister Tony Abbot.

Dual-nationals stripped of their Australian citizenship by the Immigration Minister would be allowed to seek review of the decision to the Administrative Appeals Tribunal and Federal Court.

The immigration minister will rely on the advice of intelligence agencies in the decision. Mr Peter Dutton, admitted that it will be “very difficult of course to gather sufficient evidence to satisfy an Australian court beyond reasonable doubt that that person committed that offence in that part of the world.”

Former attorney general and immigration minister, Mr Philip Ruddock has been appointed as a special envoy for citizenship and community engagement in the broader review of Australian citizenship. Mr Ruddock said: “We offer people respect for their race, their country of origin, their religion, their cultures, but we do have expectations that all who make a commitment to this nation and its future, will observe the laws of Australia. There is nothing new in that.”

Source: Migration Alliance

DIBP and Centrelink targeting relationship fraud

To assist in a Department of Human Services (DHS) investigation into social welfare fraud, DIBP will release more than 5000 individual records to DHS–Centrelink for data matching purposes.

These records will be electronically matched against DHS–Centrelink data holdings to
identify non-compliance and fraud through declarations regarding relationship status and details.  The DHS is particularly targeting:

• Centrelink customers who are failing to declare their correct relationship status to the ​department

• Visa applicants suspected to be involved in migration fraud in the partner visa programme

• Facilitators / organisers / professionals involved in migration fraud using the partner visa programme as a pathway for their clients to obtain permanent residency in Australia

Source: Migration Institute of Australia

Guess which country’s nationals have the highest rate of visa cancellations on character grounds?

Figures just released by the department of immigration revealed that some 450 foreigners in Australia have had their visa cancelled since July 2014 after being convicted of serious crimes in Australia. Another 100 visa applications were refused under character provisions.

Compared with the previous year this represents an increase of over 450 per cent in visa cancellations and an increase of over 40 per cent in visa refusal decisions. Minister for Immigration and Border Protection Peter Dutton said these actions prove the Government is serious about protecting Australians from foreign criminals.

The DIBP media release noted that in the same period, of the 450 visas cancelled, 34 removals have taken place from New South Wales, with Western Australia (13), Victoria (11) and Queensland (10) together accounting for another 34 removals.

“My message to the minority of people who travel to Australia and violate community standards is that they should consider themselves on notice; we will continue to target you by cancelling your visa and will remove you from Australia as soon as possible,” stated the Minister.

Under changes made by the Australian Government, mandatory visa cancellations can apply to non-citizens convicted of serious crimes like murder, rape, sexual assault and drug crime.

Over the last year, seventy-one people have been deported following criminal convictions in Australia, including nine pedophiles, six rapists and one murderer.

One hundred people had their visa applications refused for failing Australia’s character test in migration laws, including 40 from the United Kingdom and 22 from New Zealand.

The DIBP figures revealed that New Zealanders make up more than half of the 450 foreigners who have had their visas cancelled: 254 Kiwis had their visas cancelled, the highest of any nationality, followed by 40 British nationals.

Source: Migration Alliance

Live in Victoria – Significant Investor Update

This update provides information about the Victorian Government’s activities to support and attract investor migrants to Victoria through the Business Innovation and Investment Program’s Significant Investor Visa stream.

Significant Investor applications summary

The final program outcomes of the Significant Investor Visa under the previous complying investment framework, which closed on 22 April, are as follows:

From the commencement of the SIV program on 24 November 2012 to 22 April 2015, Victoria has nominated 1,745 investors, whose combined intended investment value is estimated to be in excess of $8.72 billion.

More than 90 per cent of these funds have been invested in government bonds and managed funds.

As at 31 March 2015, the Commonwealth Government had granted 751 visas nationally, of which 428 (57%) were granted to Victorian nominated investors, 245 (33%) to NSW nominated investors, and the remainder to other jurisdictions.

Commonwealth reforms of investor visas

The Commonwealth Government has announced the new complying investment framework for the Significant Investor Visa (SIV) and Premium Investor Visa (PIV) programme. The Government intends that the framework will be implemented from 1 July 2015.

Austrade will also become a nominator for the SIV, alongside State and Territory Governments, and will be the sole nominator for the PIV.

Under the new framework, SIV applicants will be required to invest at least $5 million over four years in complying investments which, under the new rules, must include:

At least $500,000 in eligible Australian venture capital or growth private equity fund(s) investing in start-up and small private companies. The Government expects to increase this to $1 million for new applications within two years as the market responds;

At least $1.5 million in an eligible managed fund(s) or Listed Investment Companies (LICs) that invest in emerging companies listed on the Australian Securities Exchange (ASX); and

A ‘balancing investment’ of up to $3 million in managed fund(s) or LICs that invest in a combination of eligible assets that include other ASX listed companies, eligible corporate bonds or notes, annuities and real property (subject to the 10% limit on residential real estate).

Direct investment in real estate has never been a complying investment for SIV and this will not change under the new arrangements. Indirect investment in residential real estate through managed funds will also now be limited. Importantly, a SIV holder can still independently invest in residential real estate so long as it complies with foreign investment rules, but this would not count as a complying investment to qualify for a visa.

Premium Investor Visa

The Commonwealth Government intends to introduce a new Premium Investor Visa from 1 July 2015 targeting talented entrepreneurs and innovators. The PIV will offer an accelerated 12 month pathway to permanent residency, for those meeting a $15 million threshold.

It is understood that the PIV will be available at the invitation of the Australian Government, with potential recipients to be nominated by Austrade. This programme will be rolled out over the next year, focussing on attracting a small number of highly talented and entrepreneurial individuals. States and Territories will play an important role in helping to identify potential applicants.

Source: Victorian Government

‘Backpacker tax’ could send shockwaves through the English language course sector

One of the shock announcements of the Budget was that working holiday visa holders will be required to pay about a third of their earnings in taxes. The Treasurer announced that from July 2016, those on a working holiday in Australia will no longer enjoy a tax free threshold of up to $18,200, and will instead be forced to pay 32.5 per cent tax from their first dollar earned. That measure will apparently save the budget $540 million over four years.

What is the real cost of this? Backpackers might go elsewhere like New Zealand. Fewer backpackers here could also mean a dive in the enrolments in the ELICOS sector – the English Language Intensive Courses for Overseas students. The ELICOS visa has been used by many backpackers to remain in Australia at the end of their work/holiday stint and some go on to full student visas for other courses.

Sue Blundell, English Australia’s executive director told The Australian that taxing backpackers will affect the ELICOS sector badly as these working holiday-makers could start looking elsewhere and drastically damage a $2 billion dollar industry.

The ELICOS sector accounted for 15.0% of total student enrolments and 21.5% of total commencements in YTD February 2015. A report by EA and the federal Department of Education has found that almost 164,000 students started English language courses last year, with student numbers increasing by 11 per cent on last year and revenues climbing to $2 billion.

China accounted for the largest cohort of enrolments and commencements in ELICOS with shares of 26.1% and 21.7% respectively. Brazil was the next largest nationality for ELICOS enrolments with 8.0%, followed by Thailand and Colombia (7.8% and 6.9% respectively).

Ms Blundell said ELICOS colleges faced a tougher time from July next year following last week’s budget decision to remove the tax-free threshold from working holiday-makers’ earnings.

“But the tax status of working holiday-makers is a huge thing,” she said. “We’re going to see ourselves losing working holiday-makers hand over fist — they’ll go to New Zealand, where they can still have those tax benefits.”

Source: Migration Alliance

Further information on biometrics collection for Australian visa applicants in Hong Kong

From 22 May 2015, we will commence the collection of biometrics in Hong Kong.

Biometrics will be collected from visa applicants who are in Hong Kong at the time of making a visa application to enter Australia, unless they are excluded or exempted from doing so under Australian Government policy.

Exemption:
Holders of Hong Kong SAR, Macau SAR, British National Overseas, and People’s Republic of China passports do not need to provide biometric data when applying in Hong Kong for visas to enter Australia.

Visa applicants residing in Hong Kong who lodge their application at the Australian Visa Application Centre (AVAC) in Hong Kong will be asked to provide their biometrics at the same time.

Visa applicants who send their applications by post to the Australian Consulate-General in Hong Kong or to the AVAC, will be sent a letter requiring them to attend the AVAC, in person, to provide their biometrics.

Some applicants lodging their visas online might be sent a letter informing them that they need to attend the AVAC in person to provide their biometrics.​​​​​

Applicants will need to contact the Australian Visa Application Centre to make an appointment and have their biometrics collected.

Biometric data will be collected by the Australian Government’s service provider VFS Global through a quick, discreet and a non-intrusive process that captures a facial image and a 10-digit fingerprint scan.

More information about these new arrangements is available on DIBP’s Hong Kong page. ​​​​​​​​​​​

Source: DIBP

New SIV and PIV announced by Austrade

Today the Government announced the new complying investment framework for the Significant Investor Visa (SIV) and Premium Investor Visa (PIV) programme. The Government intends that the framework will be implemented from 1 July 2015 and will encourage investment into innovative Australian ideas and emerging companies. Austrade will also become a nominator for the SIV, alongside State and Territory Governments, and the sole nominator for the PIV.

The new arrangements are part of the Government’s Industry Innovation and Competitiveness Agenda, announced by the Prime Minister in October 2014. Since the announcement, Austrade has undertaken extensive consultations with interested stakeholders, including public consideration of complying investment design options through two rounds of public written submissions (receiving approximately 170 submissions). Austrade and the Department of Immigration and Border Protection will continue to consult with stakeholders to explain the investment framework ahead of the changes to the programme being implemented on 1 July 2015.

Under the new framework, SIV applicants will be required to invest at least $5 million over four years in complying investments, which must now include:

• At least $500,000 in eligible Australian venture capital or growth private equity fund(s) investing in start-up and small private companies. The Government expects to increase this to $1 million for new applications within two years as the market responds;

• At least $1.5 million in an eligible managed fund(s) or Listed Investment Companies (LICs) that invest in emerging companies listed on the Australian Securities Exchange (ASX); an

• A ‘balancing investment’ of up to $3 million in managed fund(s) or LICs that invest in a combination of eligible assets that include other ASX listed companies, eligible corporate bonds or notes, annuities and real property (subject to the 10% limit on residential real estate).

Previously, investment through the SIV programme was largely going into passive investments like government bonds and residential real estate funds – areas that already attract large capital flows.

Direct investment in real estate has never been a complying investment for SIV and this will not change under the new arrangements. Indirect investment in residential real estate through managed funds will also now be limited. Importantly, a SIV holder can still independently invest in residential real estate so long as it complies with foreign investment rules, but this would not count as a complying investment to qualify for a visa.

The Government intends to introduce a new PIV from 1 July 2015 targeting talented entrepreneurs and innovators. The PIV will offer an accelerated 12 month pathway to permanent residency, for those meeting a $15 million threshold. The PIV will be available at the invitation of the Australian Government only, with potential recipients to be nominated by Austrade. This programme will be rolled out over the next year, focussing on attracting a small number of highly talented and entrepreneurial individuals. States and Territories will play an important role in helping to identify potential applicants.

A link to the Government’s announcement and further information on the new complying investment framework for the SIV and PIV can be found on Austrade’swebpage  Information on the process of applying for a SIV can be found on the Department of Immigration and Border Protection’s webpage.

Is it time to keep an eye on small cap stocks with the changes to the SIV?

Anyone here know a good small cap stock fund manager? Australia’s venture capital groups and small cap stocks fund managers probably had a great weekend given the announcement that a significant portion of funds under the SIV programme is to be directed their way from 1 July 2015.

If the SIV program leads to the grant of 1000 visas a year, there could well be an injection of AU$5 billion into the Australian economy annually. Venture capital groups are expected see $500,000 million of this with the Australian small cap stocks possibly absorbing AU$1.5billion.

The question hanging over the changes is whether the wealthy Chinese investors who make up over 90 per cent of SIV applicants will still remain keen on the programme. Venture capital groups and fund managers who spoke to The Australian Financial Review (AFR) were quick to play down the higher risk element introduced into the SIV program with one saying,

“…they [Chinese investors] like to keep their money so it won’t disappear, but they also understand that with high risks such as VCs come high returns.”

According to an AFR report, last year, Australian small-cap managers posted a remarkable 16.25 per cent (their equal-weighted average return) against the S&P/ASX Small Ordinaries 0.76 per cent loss, according to the S&P Dow Jones SPIVA Australia Scorecard.

But small cap fund managers are known to charge hefty fees which can strip 20% of any gains for their work in investigating hundreds of companies each year to find the most promising ones for their clients.

Minister Robb said the previous SIV framework had set the bar too low, with investment largely directed into passive investments such as government bonds and residential real estate schemes – areas that already attract large capital flows. Australia is looking for investors with a different mindset.

It however, still remains unclear how the government is going to deal with the ‘loan-back’ schemes of some SIV fund manager apart from Minister Robbs statement that, “Indirect investment in residential real estate through managed funds will now be restricted.”

Some analysts have pointed out such schemes were allowing SIV funds to be directed into the Australian property market with banks making it easy for investors to access their investment funds by way of loans against their SIV investments.

Source: Migration Alliance

Visa application charge increases 1 July 2015

Following the release of the Federal Budget for 2015-16, the increases in visa application charges (VAC) have been announced on 13 May 2015 by the Department.

While relatively minor changes have been made to many VACs in line with inflation or where sustained volume is expected, significant increases have been made for the Significant Investor Visa subclasses and also for offshore Partner visas.

VAC increases include:

• 3% for GSM, Skilled Graduate, 457, Visitor and Student streams

• 5% for Temporary Short Term Business, Entertainment, Working Holiday, RRV, Retirement and Contributory Parent streams

• 10% for Remaining Relative, Carer and Aged Dependent Relative and non contributory Parent visas

• 50% for Significant Investor visas and Offshore Partner visas.

Please refer to the following link to access the full list of fee increases from 1 July 2015 for each visa subclass/class:

http://www.immi.gov.au/pub-res/Documents/budget/VAC-increases-fact-sheet.pdf

2015 Budget Immigration Highlights

• Funding to international aid reduced by a further $1 billion from 2014-15
• $14.5 million being allocated in 2015-16 for an expansion of the Adult Migration English Program to include refugees on temporary visas
• $22.1 million over four years to support young people from refugee and migrant backgrounds to build skills to improve their participation in education and work ( in Social Services portfolio)
• Funding to international aid reduced by a further $1 billion from 2014-15
• Working Holiday visa holders no longer be eligible for the tax free threshold on earnings and will pay 32.5% tax from the first dollar earned
• Free trade agreement with India opening the possibility of Working Holiday Visas for Indian nationals
• Increase scrutiny and transparency surrounding foreign investment in agriculture and agribusiness
• Net loss of over $8 million to the Department over four years by not requiring lawyers to register as RMAs
• Saving of $1 million by merging the OMARA back into the Department

Source: MIA