Australia Abandons ‘Golden Visa’ Program Targeting Affluent Investors
Australia has terminated its “golden visa” program, which provided affluent foreign investors with the privilege to reside in the country. Originally intended to attract international business, the visa was discontinued during an immigration revamp after the government identified it as yielding “poor economic outcomes.”
Detractors have consistently contended that the initiative was exploited by “corrupt officials” for the purpose of “parking illicit funds.” The replacement for this program will be a focus on introducing more visas for skilled workers.
Since its initiation in 2012, the Significant Investor Visa (SIV) program has granted thousands of visas, with 85% of successful applicants originating from China, according to government statistics. Marketed as a means to stimulate foreign investment and foster innovation, candidates were required to invest over A$5 million (£2.6 million; $3.3 million) in Australia to qualify.
After several assessments, the government determined that the scheme fell short of its primary goals. In a December policy document, the decision to eliminate the program was announced, with a shift towards creating visas for “skilled migrants” capable of making substantial contributions to Australia.
Minister for Home Affairs Clare O’Neil emphasized, “It has been obvious for years that this visa is not delivering what our country and economy needs.”
The move has garnered approval from Clancy Moore, CEO of Transparency International Australia, who asserted that the termination of the golden visa program will help curb the use of Australia as a haven for illicit funds.
The program had been under scrutiny for alleged “loopholes” and “vulnerabilities.” Bill Browder, a key figure behind the Magnitsky Act, criticized the scheme. In 2016, a government inquiry raised concerns about the potential for money laundering, and in 2022, The Australian reported that individuals associated with Cambodia’s Hun Sen regime exploited the system.
The inquiry also found that the visas were attracting individuals with “less business acumen” while offering tax concessions that were a burden on the public. Some asset managers disputed these assessments, arguing that the subsequent investment from SIVs exceeded the initial A$5 million buy-in.
Australia’s decision aligns with the UK’s move in 2022 to abolish a fast-track residency scheme for the super-wealthy due to concerns about the influx of illicit Russian money. Similar golden visa programs have faced scrutiny in Malta, where citizenship has been expedited for wealthy non-European Union nationals, with concerns raised about money laundering, tax evasion, and corruption.
