We’re selling visas for practically nothing, and missing a huge opportunity. Australia is great because Australians have worked hard to make it that way. That’s why so many people want to live here. Let’s not sell it short.
Here’s a thought experiment for you… How much would I have to pay you to take your Aussie citizenship off you?
And I don’t mean so you can pocket the cash and just pop over the New Zealand. I mean swapping your citizenship rights for Malaysia, or India or China…
… or somewhere in Africa?
How much would I have to pay you? $1mill? $10mill? $50 mill?
A gazillion dollars?
If you’re like me, you couldn’t actually pay me enough. There’s nothing in the world I’d trade it for. Maybe if we stretched it into fantasy. Perhaps I’d give up being an Aussie for a weekend on tropical island with 1980s Elle McPherson…
But even then… I love being an Aussie an awful lot.
And is there anyone here who doesn’t? Born and bread or fresh off the boat, we’ve found ourselves blessed to be citizens of one of the best countries in the world. (If you have little Australian flags, prepare to wave them now.)
We won the lottery of life, and I intend to honour that victory, and everyone who didn’t get so lucky, but enjoying my Aussieness to the limit.
But to come back to my thought experiment, how much would you sell me your citizenship for?
Have a think about it and keep that price in mind.
Now, if prices are symmetrical which every economics text books assumes they are, then that price is what you see the ‘value’ of citizenship as being. What you’re willing to sell it for should be about what you think people should pay for it.
So how much do you actually think it costs to buy Australian citizenship?
What if I said it’s $5 million… What do you think? Does that seem cheap? Expensive?
That’s the cost of the Australian Significant Investor Visa (SIV). In short, if you’ve got a stack of cash you’re willing to invest in Australia, you can effectively buy your way in to the country.
Or in the eloquent language of the Immigration Department (my emphasis):
The purpose of the visa is to provide a boost to the Australian economy and to compete effectively for high net worth individuals seeking investment migration. Migrant investors will be required to invest AUD5million into complying investments for a minimum of four years before being eligible to apply for a permanent visa.
There’s a couple of things that jump out. The first is that it’s very clear that SIV is meant to be a stepping stone towards permanent residency. There’s other visas available if you’re just setting up a business. This one’s about permanent residency.
The other thing that strikes me as odd is that the department sees us as in ‘competition’ with other countries for these high net worth individuals. Really? They make it sound like there’s some kind of bidding war going on…
Last time I looked, there weren’t too many countries in Australia’s league. If you wanted a prosperous and stable economy, a healthy civil society, strong rule of law, beautiful weather, and first class education facilities for your children, where else are you going to go?
Sure, I know the US, Canada and the UK are also popular destinations (the top 4 for wealthy Chinese investors). But last time I looked Canada didn’t have Koala’s.
Ok, maybe there’s a handful in Australia’s league. But I don’t reckon there’s many.
And I’m sure there’s no shortage of demand. There’s a lot of folk around the world who’d be willing buyers if they could be. The broker CLSA reckons that 1 in 7 households in China alone (that’s 10 million of the wealthiest Chinese households) are interested in moving to Australia.
So why are getting involved in this bidding war?
On the face of it, the SIV isn’t cheap by international standards. $5 million here compares with $1.5m in New Zealand, $1m in the US and a million pounds in the UK.
It was $800,000 in Canada before they scrapped their scheme due to overwhelming demand.
If this is a bidding war we need to talk to our negotiators. They’re way off base.
But this is where the SIV story is a bit odd. Because that $5 mill isn’t a fee. It doesn’t go into the government coffers. No. All it says is that you’ve got to park your money in approved investments for a minimum of 4 years.
You get it back at the end of that, plus you keep all the returns you’ve made along the way…
And what are complying investments? Well they are:
- Commonwealth, State or Territory government bonds
- Managed funds with a mandate for investing in Australia; and
- Direct investment into Australian companies.
(Note: property is not a complying investment, but there’s nothing to stop your managed fund taking on an exposure to property if you asked them to.)
So we’re saying to people who want to live and invest in a stable and prosperous economy, that they can do that, but in order to do that, they need to invest some of their money in our safe, prosperous economy.
Isn’t that kind of the point?
In the US, conditions are tougher. People are required to invest in a company and create at least 10 jobs! There’s an idea.
So $5 mill sounds like a lot, but at the end of the day it’s close to nothing. You don’t have to give us $5 mill. You just have to prove you have it.
Personally, I reckon we should be auctioning these things off to the highest bidder. Take the money and reinvest it in nation building.
And it should go hand in hand with a significant social contribution visa – where we seek out the bold, the brave, the generous, the innovative from around the world – no matter what their bank balance is.
But selling off visas for practically nothing seems to be selling us, and the greatness of our nation, short.
Ernest says
They can have mine for $5mil make the cheque out to out of here!!
Jenny says
I agree with Jon – couldn’t pay me enough. Even with all the problems we have, we’re better off than US, UK, European countries…
Russell.Ross says
Unfortunately it is costing them nothing at all as they get their M$5 back and the interest as a bonus therefore if one was realistic we are giving it to them for free and after 4 years they can send the money overseas to wherever and live off the interest accrued as well as the generosity of the government with their further hand outs, what wonderful governments the voters of Australia entrust there country to. Viva La Revolution Aussies and get a better government and workable honourable Government
Not convinced says
Umm, Jon, maybe you should review the bit about “strong rule of law”, in light of (Most) “Anti-terrorism” legislation drafted post-2001. It gives Police and other agencies some pretty scary rights to detention without trial, reduced (or no) right to silence, and in some cases, the reversal of the onus of proof (“unexplained wealth” legislation, anyone?) For those who would sprout the “but they’re there to protect us” line, you’d do well to review the various reviews of these laws which have taken place in recent times, which reveal them to be either ineffective, or a serious breach of Civil liberties (or in many cases, both).
Add that to the increasingly exorbitant cost of living, and extreme right-wing Governments that hector and threaten, and the place tends to lose a bit of it’s lustre…
Why not write an article “picking apart” the real LNP Agenda, of forcing the country into recession (austerity measures), driving down wages (and hence Public Savings), while rasing (1st) the pension age, and then the age at which one can access one’s Super. It all adds up to people working ’till they’re 70…75…80. By which time they’ll (hopefully) have shuffled off this mortal coil, and be less of a “burden” on many of the services they’ve subsidised with their taxes through their working lives…
Anlu says
or perhaps you could read in today’s newspapers that Saudi Arabia has executed a person a day this month by beheading, with mock trials and virtually no access to legal representation for these poor souls. Often they have been tortured into their false confessions for ‘crimes’ such as adultery.
Then perhaps you may get some perspective about how ‘bad’ we’ve really got it in Aus.
peter says
Anlu, what you say is factually correct BUT “not convinced” is right. The current government is attempting to take us down the path of Saudi Arabia and other countries that make free speech illegal and assume guilt rather than innocence until proven otherwise. The proposed reduction of civil liberties is outrageously restrictive.
Jon is also right. We are selling our country and surrendering our hardcworked for rights to people who have no alegience to this country and our values; MADNESS.
Anlu says
Sorry Peter, the previous Labor government was the one that brought in the ridiculous anti-free speech laws. Just ask Andrew Bolt. The Abbott govt was trying to unpick some of them and got howled down by the Leftist media.
filomena says
Your insight Jon is very true. If anyone would buy my citizenship, they cannot afford it because that right as an Australian citizen is priceless, no amount of money can buy that from me. There are many people who are enjoying the beauty of Australia, including the benefits they all received, but cannot help themselves complaining, just for the sake of it. These people should be thankful and grateful, that they are living in the most beautiful country in the world, which instead of complaints or whingeing, they should help find something or contribute to benefit Australia in general. May God Bless Australia Forever!!!!
Gan says
They can have mine for $5M as well. Can retire early. How many people have $5M or worth $5M. May be one in every 10,000 or 100,000 people? Any stats?
Blaknight says
If we stay the course with this SIV all profits should be held by the Federal Govt and dispersed appropriately for the betterment of our nation and any losses accepted by the applicant as a risk for the investment in our nation. The investment period should be increased to 10years to be sure that any persons wishing this visa has an interest in waiting as others do that apply without this type of financial backing.. Also I hope these investors are appropriately screened for who knows how they had attained this $5million, legitimately? Illegally? We don’t want this money or to grant visas if the latter applies. There are many more scenarios but I’m out of time.
Sudesh Bali says
The main reason why a sensible Aussie will not leave his citizenship is the difficulty to find a Civil community with Rule of law and healthy-life habits and green and salubrious surroundings we see in Victoria.
Tim H says
I’m with you Jon. They couldn’t find enough cash to pay me to give up my Aussie citizenship.
To Ernest and Gan save someone the money and get on the next plane out of here.
Sudesh congratulations you understand what Jon is saying.
Aussie as there’ll ever be and bloody proud and happy about it too !!!!!
Paul G says
Sorry to tell you mate but Australia is only a sham Democracy. We have lost our Common Law Rights and are considered by the government as assets. They have legislated away everything (including our constitution). You cannot even have something tested in the Court systems, the Government of the day (State or Federal) can instruct the Judiciary that your case is not to be heard, and that is that.
My Family has shed blood for this country in Two world Wars. I served. I have told my children to get out as soon as they can.
Ken says
Everyone should read Tim H again before whingeing. Paul G, you’re not the only one to shed blood for this country. But sorry mate you are not old enough to have served in a real war. If you had, you would cherish this country like you would your own kids.
huckleberry says
perhaps i’m wrong, but the reason “we” are all so anti “illegal immigrant” (boat people) is because “we” all believe that they are not legitimate refugees and they have “paid” their way into Australia, thus if they have money then they should get to the end of the line. but an SIV give those with MORE MONEY a front of the line pass. when the Titanic went down they locked the lower decks (the cheap seats) and gave the life boats to those who had large bank balances. next time i’m 4 times over the legal limit and i roll my car down Bellevue Hill hopefully i’ll get a pat on the head too.
Brian says
That is one type of migrant, and I think they are contributing pretty well as is. At least they are able to apply capital to improve our economy in ways of their choosing. To me, the bigger problem is the people who bring nothing in, then need public funds to support them, sometimes for years. And to rub salt in further, a small proportion of them openly disrespect our culture and laws. We need to have a means of having a second thought about retaining such people here. (Provisional visas for 5 years?). I am surprised at the attitude of some of your readers, which implies that the government is being too dictatorial as it is. Seems we need more strict selecivity, not less…… Brian
Sandy says
This is my thoughts only, the Chinese people have been in Australia for 200+ years and have not been any great problem not like some country,s/religions so I think this should be looked at in a sensible light .
This country needs to learn how to produce products and learn how to work at nation building(go to china and have a look). Don’t get me wrong we don’t let any tom,dick and Harry here but look at it properly before this country looses all of its ability to manufacture anything.
Ps I am a 7 th generation Australian and proud of it and I operate a medium sized company. All I ask is think about who we want in this country.
gerald says
Ernest, Gan, are you guys for real? would you really live in China forever for $5 mil? Seems cheap to me…
Eileen says
Gerald, I agree with you, some people think $5 million is a lot of money. I wouldn’t live anywhere else in the world for any amount of money. Perhaps I value Australia more than most native born Aussies because I didn’t grow up here. I have travelled quite a bit and had a chance to compare other places to what I have now.
Many people protest about losing our freedoms in this country, but are quite happy to show their reward cards, (and soon to obtain their mortgages) from one of the two supermarket bullies who will then know where you live, what you earn, what your disposable income is, what you eat, how much alcohol you drink and exactly what you eat! Surely this is more invasive than having to explain ‘unexplained wealth’………….which from memory was never the onus of the government to prove in the first place!
Why shouldn’t we stop people who come on leaky boats to these shores? Both sides of politics agreed that they are ‘enonomic’ refugees. They are breaking the law! I’m sick of the whingers knocking this country…………..have you seen the economies in some of the other countries that are still on their knees? So please do be quiet, I’m sick of it! The worst thing that I have seen in the time that I have lived here is the Rudd/Gilliard government that simply gave away all the money that the Liberal party saved. I can’t forgive myself for voting for them!
I look at my stimulus package diamond bracelet, (and my husband’s stimulus money too) and I am constantly reminded about the 1100 people drowned on the high seas, children in detention, smaller school halls program, the pink batt fiasco, and God knows what other dreadful things they orchestrated whilst in Government. Thank God that’s over!
Still not convinced says
“Unexplianed wealth” legislation has been brought in – specifically – to reverse the onus of proof. Traditionally, you were innocent until proven guilty. Ergo, the Government (via the Police/Courts) had to prove that disputed (or “un-explained”) assets were procured via the proceeds of crime. This legislation reverses that, by forcing someone thus charged to “prove” they weren’t obtained illegally. (Hope you’ve kept your receipts over the years!)
Gut feel is that this kind of legislation is the tip of the iceberg. If people accept the reversal of the onus of proof, legislators will move on to the next “crime” and so on.
Who knows…2 years down the track, you might be prosecuted for something you saw/did on the internet. Wasn’ttt illegal when you did it, but is in two years’ time. They’ll have the incriminating “evidence” (metadata), and you’ll be forced to try and “prove” you didn’t…Think not? Put the metadata retention debate together with the LNP’s stance on copyright breaches (particularly downloading), and you may think again…
Rose says
No amount of money would ever be enough for me to relinquish my beloved Australian citizenship (enjoyed from birth).
By the same token, I believe that citizenship earned by new Australians should require a period of
time spent assimilating here, additional to a passion for and an understanding of the preciousness
of acquiring Australian citizenship and a ready to relinquish your now redundant country of origin citizenship. And if you are here for all the right reasons, I wish you an unreserved, “welcome”.
Angela says
How many of you are proud to be an Australian? I am.
When people ask me what nationality I am , I proudly proclaimed that I am an Australian. They would laugh and jeer. Why, what an Australian look like ? Definitely not blonde hair and blue eyes.
But those with that features claim our country even they had been here only a short time.
Our country are made up of all races of the world. We all make and call Australia home.
We all came to Australia to seek a better live for us or for our children. You may not have to do it yourself but your ancestor had done it for you. You are in the same boat.
Yes, Australia is a lucky country, it is heaven on earth. Maybe most of us not realize it and take it for granted.
To come here as a migrant is not easy. First the culture and food and lifestyle.
It takes time to adapt and adjust.
I saw many talented people not doing the same job they are they are qualified for the
entry to Australia.
Efficient in English language is a must for all Australian, so that they can compete to get a decent job and not depends on the government handout.
Phll M. says
I am born & bred Aussie & very proud to be an Aussie. I love this country, I would NEVER change my citizenship for any amount of money whatsoever. I know we have crap politicians, don’t all countries? Come on Australia, Be true blue To those who don’t like Australia remember the saying – “If you don’t like it here – LEAVE.
Jota says
Mine is for sale for the exorbitant price of $1. And I think I am ripping you off at that. Any takers.?
David Liao says
totally agree. We shouldn’t short sell our PR for just $5m. the money should park here for much longer, not that 4 years.
Frank says
This is quite frightening. I had always assumed a SIV had to actually invest in Oz. This needs to be brought to the attention of the general public & Parliament. It is scandous & needs to be corrected. Frank
Ken. says
Not sure what some of you are on about, but the press and Bolt need to show some respect when talking about most things. If this is freedom of speech, some people will keep getting into trouble because of a few idiots that are only trying to get their shit shows a better rating.
WRJ says
So I am a citizen of China, or Russia, or where ever, and I want to get out. I borrow $5 million worth of local currency or perhaps a bit more from a bank or a rich relative. I invest it in Australian government bonds or Australian companies that pay a pretty good rate of return at present in global terms. I send the bonds and share certificates to the people who loaned me the money just so they are comfortable that I am not going to run off with their money. I use the interest to pay the interest on the borrowings in my home country because most countries have lower interest rates than Australia at present. I keep a little of the earnings here just to help me get started.
At the end of the period I apply for the permanent residence visa and then cash in the bonds or shares pay the money back. By then – with even a modicum of work – I have learned enough English and made enough friends to be able to support myself. I then apply for visas to bring my wife and siblings out and in 10 years I have successfully moved most of my family to Australia. And it has cost me … not much at all. Now that makes paying people smugglers sound like a very expensive route into the country.
And the net result for Australia is what? I have helped to temporarily support the Australian dollar at high levels of exchange that have contributed to the demise of Australian export industries. And maintained local interest rates and share prices.
Is that really what was intended?