The Productivity Commission’s (PC) 2016 Migrant Intake Australia report explicitly called for the abolition of the Significant Investor Visa and the Premium Investor Visa programs, whereby Australian citizenship is sold to high net worth individuals without the usual (albeit weak) checks and balances:
Because there are no English-language requirements for the Significant Investor Visa and Premium Investor Visa, and no upper age limits, it is likely that these immigrants will generate less favourable social impacts than other immigrants. Further, compared to other visa streams, investor visas are prone to misuse and fraud. Concerns about visa fraud played a part in the Canadian Government’s decision in 2014 to scrap its investor visa scheme.
Overall, the case for retaining the Significant Investor Visa and Premium Investor Visa streams is weak and the Government should abolish these visas.
The PC also questioned the merits of the business and investment visa program:
Most immigrants through this stream own or operate established businesses in retail or hospitality with fewer than five employees… The BIIP has recently been reviewed by the Joint Standing Committee on Migration. It found that limited data exist to assess the impacts of the program, and that it is probably not meeting objectives related to increasing innovation or linking with international markets. The Commission agrees with this assessment. Data limitations make it difficult to assess whether the BIIP generates genuine additional economic activity, or simply displaces other potential business owners. It is also not possible to compare the impacts of BIIP immigrants relative to other immigrants…
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With this background in mind, and against the PC’s recommendations, these types of visas are booming. From The SMH:
The number of millionaires streaming into Australia has surged to 7260 in the past year, new figures show…
Visa applications in the Business Innovation and Investment Programme, which includes investors with more than $1 million in business assets, jumped by 74 per cent in 2016-17 up from 5781 to 9051. Of those 7260 were approved, compared to 6484 in 2014-15.
In the same category, a fast-track visa allows the government to plough foreign cash into local projects in exchange for residency rights in as little as 40 days without the person passing an immigration test of their education, English proficiency and employment qualifications.
The “significant investor stream” asks investors to stump up $5 million for Australian bonds, shares and venture capital projects. By March 2018 up to 2000 had been approved, delivering a $10 billion windfall to the Australian economy, despite a slow-down after property was excluded from the category in 2015…
The report said Australia had a net-inflow of 10,000 millionaires in 2017. The Department of Home Affairs confirmed “high wealth individuals may also be granted visas through other visa classes [outside the business and innovation programme]” to explain the difference between the two figures.
“That is the highest net migration of millionaires to any country last year in absolute terms, let alone correcting for population,” said Grattan Institute chief executive John Daley…
China accounted for 90 per cent of all high-net worth investors coming to Australia in 2016-17…
LRG lawyers migration manager Mark Ryan said the visa was attractive to astute investors.
“If you had $5 million why would you not just do that? All you have to do is show up for 40 days,” he said
“It’s a great visa, they don’t have to come and work, it gives them the flexibility to invest $5 million, and then their kids can go to school here.”
Clearly, Australian Citizenship is up for sale to anyone with enough money to pay. Few questions are asked, there’s no rigorous background checks on the persons or the source of their money, there’s no requirement to speak English, and there’s no requirement to work or contribute to society.
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Now compare and contrast these visas to genuine humanitarian migrants who are treated by our policy makers as if they have the plague.
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
