Australia Scraps “Golden Visa” Scheme: Focus Shifts to Skilled Workers

In a decisive move, Australia on Sunday officially abandoned its contentious “golden visa” program, formally known as the Significant Investor Visa (SIV). The program, designed to attract wealthy overseas investors by offering residency in return for a substantial financial commitment, has been under scrutiny for its purported negative economic impact.

Reasons for Scrapping the Golden Visa

Poor Economic Outcomes: The Australian government cited “poor economic outcomes” as the primary reason for scrapping the Significant Investor Visa (SIV) program. Reviews revealed that the program attracted investors with limited business acumen, resulting in underwhelming contributions to the economy.

Corruption Concerns: Critics, including Transparency International Australia, voiced concerns about the program’s susceptibility to misuse by corrupt officials and money launderers seeking to park illicit funds in Australia.

Dominance of Chinese Investors: According to government data, a staggering 85% of SIVs were granted to Chinese investors, raising concerns about national security and potentially skewed economic benefits.

Shifting Focus to Skilled Workers

The axing of the SIV program reflects a broader shift in Australia’s immigration policy towards attracting skilled workers. The government aims to replace the investment-based scheme with a system that prioritizes individuals with expertise in critical fields aligned with national economic needs.

Global Trend Against “Golden Visas”

Australia’s decision follows a global trend, with several European countries, including the United Kingdom, also discontinuing golden visas or similar residency-by-investment programs.

In 2022, the UK terminated its investment-driven residency program over concerns that it was being exploited by money launderers, particularly from Russia.

Reactions to the Decision

Proponents of the SIV program argue that it attracted valuable foreign investment and contributed to economic growth. However, many welcome the government’s decision, viewing it as a positive step towards a more transparent and meritocratic immigration system.

Clancy Moore, the chief executive of Transparency International Australia, hailed the move, stating, “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.”

Moving Forward

Australia’s decision to scrap its “golden visa” program marks a significant shift in its immigration policy. The focus on skilled workers reflects a recognition of the need to attract individuals who can contribute meaningfully to the nation’s economic and social well-being.

As other countries grapple with similar challenges, Australia’s experience could offer valuable insights into formulating effective and responsible immigration policies.