Golden Ticket Immigration Visa at Risk of Being Axed: Debate Reignites Between Business and Unions

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The Australia China Business Council (ACBC) has urged the Australian Labor Party to keep the ‘golden ticket’ significant investor visa. This came after Clare O’Neil, the Home Affairs Minister, proposed to abolish the visa. This migration review rekindled the long-standing argument between businesses and labor unions about the amount of migration allowed and the salary floor for temporary skilled migrants.

The Business Chamber of Australia warned that the promised rise in the wage floor should be done gradually, while the Australian Chamber of Commerce and Industry proposed that it should be raised to a ‘modest’ $60,000. Unions asked for the pay floor to be set at $91,000, because of their concerns about overuse of temporary labor.

In September, O’Neil said that the significant investor visa was ‘costing’ the country, and questioned its usefulness. This visa allows foreign nationals to stay in Australia for up to five years, on the condition that they make an investment of at least $5 million in approved investments. The majority of individuals taking this visa are at the end of their business careers and come to Australia to settle down.

The Productivity Commission even gave a recommendation in 2016 that the visa should be eliminated, considering it likely to be fraudulent.

The ACBC defends the investor visa, because it drives innovation and ultimately contributes to the country’s growth. They estimate that a $5 million investment to yield $250,000- $350,000 in taxable income every year, and many people are investing more than $5 million, with the intent to pass on the capital to the next generation.

The ACBC suggests reforming this visa’s rules, by asking for more investment in venture capital, or increasing the minimum stay requirement from 40 to 60 days per year. Since 2012, 85% of the 2,300 significant investor visas have been granted to Chinese nationals, and the ACBC believes that this number could increase even while keeping the overall balance of the migration program.

Abul Rizvi, the former immigration department secretary, does not agree with the investor visa, as it serves more like a retirement vehicle and does not offer much return on investment.

The Albanese Government has increased the 2022-23 permanent migration intake from 160,000 to 195,000, and businesses are further urging for more measures to be taken to resolve the labor shortage. The Business Council of Australia proposed that the migration level should be set as a percentage of the total population, and that a four year estimation should be provided.

The Australian Chamber of Commerce and Industry (ACCI) will be releasing their submission with a $60,000 salary floor being proposed for temporary skilled migrants. The Ai Group believes that $63,000 is already an overly high salary floor and would rule out many trade-level occupations which are in high demand.

Overall, it is important to assess the current situation properly and consider all potential outcomes before a final decision is reached. The reviews and submissions that have been made highlight the varying opinions of the stakeholders, and a well-rounded solution should be taken into action.