Australia has recently announced the cancellation of its “Golden Visa” scheme, which allowed wealthy foreign investors to live in the country. The decision to axe the program comes after the government found that it was not yielding positive economic outcomes and was being exploited by corrupt officials to launder illicit funds. The move towards scrapping the scheme aims to shift the focus towards attracting skilled migrants who can make significant contributions to Australia’s economy.
The Golden Visa program, also known as the Significant Investor visa (SIV), was introduced in 2012 in an attempt to encourage foreign investment and drive innovation in the country. Under the program, individuals were required to invest more than A$5 million in Australia to be eligible for the visa. The majority of successful applicants came from China, comprising 85% of all SIV recipients, according to government data.
However, the program has faced significant criticism since its inception. Critics have long argued that it provided opportunities for money laundering and other illegal activities. In 2016, a government inquiry raised concerns about the potential for exploitation and the arrival of individuals with limited business acumen. Additionally, the program offered tax concessions that were costing the public.
Despite alternative perspectives claiming that the follow-on investment from SIVs outweighed the initial investment, the negative aspects of the program have overshadowed any potential benefits. Furthermore, the Australian newspaper reported in 2022 that individuals affiliated with the Cambodian Hun Sen regime were among those who had taken advantage of the system.
The decision to terminate the Golden Visa scheme aligns with the UK’s move to scrap a similar program in 2022 due to concerns about corrupt money inflows from Russia. Both Australia and the UK are signaling a shift in their immigration policies, prioritizing skilled migrants over wealthy investors.
Transparency International Australia, an anti-corruption organization, welcomed the cancellation of the program. CEO Clancy Moore emphasized that Golden Visas had served as a vehicle for corrupt officials and kleptocrats to park their illicit funds in Australia. The move is seen as a step towards combating money laundering and addressing concerns about transparency in the immigration process.
As the Golden Visa scheme comes to an end, Australia plans to replace it with a focus on creating more visas for skilled migrants who can contribute significantly to the country’s economy. This shift indicates a recognition of the importance of attracting individuals with relevant expertise and abilities.
The decision to dismantle the program is a proactive step towards reducing vulnerability to illicit financial activities and enhancing the integrity of Australia’s immigration system. It highlights the government’s commitment to creating a transparent and robust framework that aligns with the country’s economic interests and values. By prioritizing skilled migrants, Australia aims to ensure that its immigration policy supports sustainable economic growth and innovation in the long run.
