Australia halting 'Golden Visa' program to have minimal impact on Indians, say experts

As of 2022, the United States and United Kingdom are the biggest investors in Australia, followed by Belgium, Japan and Singapore. India stands at 17th position with an investment of A$ 34.5 in 2022 (0.8 percent) of total investment.

Australia halting the Significant Investor or “Golden Visa” program will not have much impact on Indians, according to Varun Singh, MD of XIPHIAS Immigration.

The stream was for people who invest at least A$ 5 million ($3.3 million) in Australian investments that meet certain requirements and maintain investment activity in Australia. These investments typically included areas such as venture capital and managed funds, as well as investments in Australian companies.

The visa program had substantial benefits which included permission to carry out investment activity in Australia, stay for up to 5 years, bring eligible members of the family and apply for a permanent Business Innovation and Investment visa.

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As of 2022, the United States and United Kingdom are the biggest investors in Australia, followed by Belgium, Japan and Singapore. India stands at 17th position with an investment of A$ 34.5 in 2022 (0.8 percent) of total investment.

According to Singh, the minimum amount required by Australia exceeds the limit of the Liberalised Remittance Scheme (LRS) of the Reserve Bank of India (RBI), which allows resident individuals to remit up to Rs 2.5 crore per financial year for any permitted current or capital account transaction or a combination of both.

“Therefore, Indian investors need to obtain special permission from the RBI to transfer funds above the LRS limit, which is not easy to get. In fact, we got three rejections last year because the RBI did not approve the fund transfer for the Ultra High Net Worth Individuals (UHNI) who wanted to get residency in Australia,” Singh said.

Besides, Australia has a very limited number of quotas for investors, which are often filled quickly. Australia is more focused on attracting technology and talent pools, rather than investors. Hence, the decision will not have much impact on Indians planning to move to Australia, as most of them do not qualify for the investor visa due to financial and regulatory constraints.

Larger overhaul

The Australian government has designed the 2023–24 permanent Migration Programme. The reforms focus on targeted skilled migration and higher standards for international students, among others.

The government said it will introduce a four-year temporary skilled worker visa—the Skills in Demand visa. It will replace the single employer-sponsored Temporary Skill Shortage visa.

Besides, there will be three targeted pathways within the Skills-in-Demand visa programme. The first pathway is the Specialist Skills Pathway which recognises highly skilled migrants, earning at least $135,000 and no less than Australian workers holding the same occupation.

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The second pathway is the Core Skills Pathway. It might include, for example, a registered nurse or secondary school teacher, who will be paid a salary of or above $70,000.

The third is the Essential Skills Pathway, a more regulated pathway for lower-paid workers with essential skills. The arrangements would be sector-specific, capped, and embedded with stronger regulation.

Moneycontrol earlier reported that changes in immigration policies have made Indian students fret over post-study work opportunities. Many students view countries such as Germany and France, with their more flexible work visa regulations and growing job markets, as attractive alternatives.

“In New Zealand, the average annual tuition fees range from NZD 20,000 to NZD 25,000. Similarly, other European countries present tuition expenses averaging between EUR 10,000 and EUR 20,000 annually. This affordability factor makes them highly desirable and practical destinations for studying. Additionally, the overall cost of living in these European countries is reasonable, contributing to students’ inclination to pursue their education there,” Gaurav Batra, Founder and spokesperson of Infinite Group, told Moneycontrol.

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