Australia has axed its controversial “golden visa” scheme, which granted wealthy foreign investors the right to live in the country. The scheme, which was initially intended to drive foreign investment and stoke innovation, will be replaced with more visas for skilled migrants capable of making significant contributions to Australia. The decision to eliminate the so-called golden visa comes after the Australian government found that the program was delivering poor economic outcomes and was being exploited by corrupt officials to park illicit funds in the country.
The significant investor visa (SIV) program has been heavily criticized and has been under intense scrutiny for alleged loopholes and vulnerabilities. The government found that the visas were bringing people into Australia with less business acumen than would have otherwise arrived, while also offering tax concessions that were costing the public. The move to scrap the scheme has been supported by Clancy Moore, chief executive of Transparency International Australia, who stated that “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.” The decision to eliminate the Australian golden visa follows similar moves by the UK to scrap a scheme offering fast-track residency to wealthy non-EU nationals due to concerns about the inflow of illicit funds, demonstrating a growing global trend to crackdown on these types of visa schemes.