CANBERRA – Australia has also halted its “golden visa” program, which previously granted wealthy overseas investors the privilege of living in the country.Â
This move is part of a comprehensive immigration overhaul as the government found that the program was yielding “poor economic outcomes.”
As part of the reforms, the significant investor visa (SIV) program or “golden visa” will be replaced by a focus on more skilled worker visas.
The Golden Visa program once became popular but critics raised concerns that the program was being exploited by “corrupt officials” to park illicit funds.
Since its inception in 2012, thousands of SIVs have been granted, with 85% of successful applicants originating from China, according to government data.
As part of the requirements, candidates were required to invest over A$5 million in Australia to qualify, a mechanism through which the country attracted foreign investment.
As per the fresh reform, the government concluded that the program failed to meet its primary objectives.
Though the government had confirmed in a December policy document to discontinue the “golden visa”, the final confirmation came on Monday when Minister for Home Affairs Clare O’Neil stated in a press release that the visa is not delivering what the country and economy needs.
Transparency International Australia’s CEO, Clancy Moore, welcomed the decision and noted that 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.
More and more countries are now doing away with their Golden Visa programs. Australia’s decision aligns with the UK which abolished a similar fast-track residency scheme in 2022 over concerns about the influx of illicit Russian money.
Golden visa programs worldwide, including in Malta, have been under scrutiny for granting speedy citizenship to wealthy non-European Union nationals.Â
One of the most popular Golden Visa schemes was launched by Portugal and it attracted wealthy individuals from across the country; however, the housing crisis also prompted the authorities to end that program.
Portugal’s Golden Visa scheme attracted citizens from across the world as the country increased the investment made through it by 42 percent. Investment raised through golden visas in 2022 amounted to €654.2 million which was a sharp increase from the previous year but even then the program was shut.
The European Union has also advocated against the program on concerns that it gives liberty to the wealthy class, some of whom are also involved in criminal activities.
