The Australian government has canceled its golden visa program for investors due to some economic and financial issues and has decided to replace it with a skilled work visa.
The first Golden Visa was designed to increase investment and innovation in Australia, and SIV asked candidates to invest $5 million; But then there are concerns about the participation of this program in affairs Corrupt and illegal transfer Funds to the country were generated by wealthy foreigners, fueling criticism of the program. Eventually, this led to the cancellation of Australia's golden visa for investors.
Poor economic results after visa issuance
Poor economic results and a major immigration overhaul prompted the government to end Australia's golden visa program, which was designed to attract foreign investment. Following this issue, this program was completely canceled. Claire O'Neill, the Minister of the Interior of Australia, said in a statement: “For several years, it has been clear that this visa has not provided what our economy and country needs and what “Our economy does not provide what we want from an immigration system.”
Non-utilization of immigrants' capital in production with golden visa
According to research conducted by the Australian government, the golden visa program not only suffered from abuse, but also provided a platform for people who lacked business acumen and prevented the benefits anticipated by wealthy investors. These people usually came to Australia for retirement and residence at the end of their lives and businesses, and this issue imposed costs on the shoulders of the Australian government for each of them.
According to Australian government data and information, Chinese investors dominated the list of successful SIV applicants, comprising 85% of all applicants. This situation caused more and more criticism and forced the government to evaluate the effectiveness of this program on the country's economy.
Finally, it became clear that this program is being abused by the rich and is not for the benefit of the country itself, and this was one of the reasons for canceling the Australian golden visa for investors.
Money laundering and illegal activities with golden visa
A group of researchers in 2016 found that the golden visas potentially allow for money laundering and other criminal and illegal activities, and critics have long argued that corrupt officials use the golden visa program to launder money. The “Australian” newspaper reported in 2022 that members of Cambodia's Hun Sen regime are among the people who abused this program. Clancy Moore, the executive director of Transparency International, was at the forefront of the campaign to cancel Australia's golden visa for investors, and one of the actions of the Australian government. It was welcomed in this context. He also accelerated the process of canceling this program by pointing out the violations, damages and concealment of proceeds from crime and money laundering by corrupt officials.
Low taxable income for visa holders
The Golden Visa for Investors was also criticized by the Australian Grattan Institute think tank, and a report in 2022 showed that this program, in addition to imposing huge costs on the country's economy, also provides low and little tax revenue to the Australian government.
Finally, these factors caused the Australian government to definitively cancel the golden visa, which was known as the important SIV program. Australia's decision to cancel this program was in line with the global trend, and other countries had canceled similar plans. One such country was the UK, which ended its investment-based residency program in 2022 due to concerns over abuse and money laundering.
Source: economictimes.indiatimes.com
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