Australia has decided to scrap a major visa program that provided overseas wealthy investors with the right to live in the country. According to BBC, the scheme dubbed 'golden visa' was halted after the Australian government found that the visa program was not delivering the desired economic outcomes. Introduced in 2012, the 'golden visa' offered High Net Worth Individuals (HNIs) a way to gain permanent residency in Australia.
''It has been obvious for years that this visa is not delivering what our country and economy needs,'' Minister for Home Affairs Clare O'Neil said in a statement on Monday.
After scrapping this programme, the Australian Government will be focusing on issuing more visas to skilled workers instead, capable ''of making outsized contributions to Australia.''
What is the Golden Visa scheme?
As per News.com.au, the visa allowed foreign nationals to stay in Australia for up to five years if they invest at least $5m in approved investments. Of this, a maximum of 60 per cent can be invested in non-residential real estate, corporate bonds, and shares. The program was designed to attract more foreign businesses and investors into the country.
According to the Home Affairs Department, more than 100,000 overseas migrants have used one of the BIIP streams to gain residency in Australia since 2012. Of these, 85 percent are Chinese millionaires. Unlike other visa schemes, the golden visa did not require people to speak English and did not have any age limit.
Criticism over the Golden Visa scheme
Critics argued that the scheme only allowed wealthy foreign nationals to park illegal funds in Australia. A review in 2016 showed that the policy had ''potential for money laundering and other nefarious activities.''
An inquiry by the Australian government also revealed that not only the 'golden visa' programme was misused, but it also allowed people with 'less business acumen' to reside in the country.
Clancy Moore, the chief executive of Transparency International Australia, told the BBC, ''For far too long corrupt officials and kleptocrats have used golden visas as a vehicle to park their illicit funds in Australia and arguably hide their proceeds of crime."
Similar investment visa schemes have been scrapped in Canada, Britain, and Singapore amid allegations that they have been abused by wealthy individuals and failed to benefit the countries themselves.
