The 'golden visa' scheme, which allowed affluent foreign investors permanent residency in Australia, is supposedly being phased out by the Australian government.
According to Australia's Minister for Home Affairs Clare O'Neil, the initiative was decided to end after the government saw it didn't produce the expected economic results, as revealed on Monday.
The Australian government introduced the golden visa in 2012 as a strategy to entice high-net-worth people (HNWIs) by providing a road to permanent citizenship. Investors from outside the nation might be eligible for a five-year work visa if they put at least $5 million into certain businesses. Shares, corporate bonds, and non-residential real estate might each get up to 60% of this total.
However, the Australian government has now decided to shift its focus from the golden visa program to issuing more visas for skilled workers, emphasizing individuals capable of making substantial contributions to Australia.
The golden visa program has allowed over 100,000 overseas migrants to gain residency in Australia since its inception in 2012, with 85 percent of them being Chinese millionaires. Notably, the scheme did not mandate English language proficiency or impose any age limits on applicants.
Critics argued that the program facilitated wealthy foreign nationals parking illegal funds in Australia, and a 2016 review indicated its susceptibility to money laundering and other illicit activities. Clancy Moore, the CEO of Transparency International Australia, expressed concerns about the program being exploited by corrupt officials and kleptocrats to conceal the proceeds of crime.
Similar investment visa programs have been terminated in other countries, including Canada, Britain, and Singapore, amid allegations of abuse by wealthy individuals and a lack of tangible benefits for the host nations.