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Information About Contributory Parent Visas

Author: Alan Collett
Date: Monday, April 21, 2003
 
For eligible parents the new category of Contributory Parent visas that are being introduced from the end of June 2003 will introduce (for most) a faster route to permanent residency. Here is a summary of the key issues and some comments as to strategies:

The New Sub-Classes
There are 2 new offshore visa sub-classes (you can apply for these if you are inside or outside Australia):
- Contributory Parent visa (Migrant), sub class 143
- Contributory Parent visa (Temporary), sublass 173

Plus, there are two new subclasses that can only be applied for if you are in Australia (ie you are "onshore") as the holder of a valid visa - for example a Retirement visa:
- Contributory Aged Parent visa (Residence), subclass 864
- Contributory Aged Parent visa (Temporary), subclass 884

In other words there are permanent and temporary visas for each of the onshore and offshore visas. The temporary visa is valid for 2 years, during which time the visa holder can apply for a permanent Contributory Parent visa.

To be eligible for the Aged Parent visa the main applicant must be aged 65 (if male) or - currently - 62 (if female). There is no requirement in terms of age in respect of the partner or spouse of the main applicant.

Visa Application Charges and the Bond
This is a key difference between the existing Parent visas and the new category:

- The initial fee payable with the visa application is (presently) A$1,175 if you are outside Australia, and A$1,745 if you are applying in Australia.
- For a permanent visa application the second Visa Application Charge is A$25,000 per adult. For a temporary visa application the second VAC is A$15,000. This fee will be requested once the visa application has been substantially processed and is close to the grant of the visa.
- For permanent visa applicants there is also a Bond payable of A$10,000 for the first adult, and A$4,000 for adult dependents.
- Temporary visa holders who apply for a permanent Contributory Parent visa will be required to pay a second VAC of A$10,000 and the same Bond as described above once their permanent visa is about to be granted.

The Bond is a sum lodged with the Commonwealth Bank of Australia for a period of 10 years, at the end of which time the monies will be returned less any welfare payments that the parents have received during that 10 year period, plus interest accrued over the Bond period.

When Can I Apply for a Contributory Parent visa?
You can lodge your application for one of the offshore visas on or after 27/06/2003; applications for the onshore visas can be accepted from 01/07/2003. Note though that the visa application forms (including sponsor forms) are not yet available - we are expecting them to be available from early in June.

Eligibility Issues
The same eligibility issues as pertain to the existing Parent visas apply to the new visa categories:

- The parent must have a sponsor (who is an Australian citizen, an Australian permanent resident, or an eligible new Zealand citizen) who is "settled" in Australia. "Settled" is taken as meaning that the sponsor must have lived in Australia as a permanent resident (or citizen) for at least the last 2 years.

- The parent must satisfy the "balance of family test." This requires that the parent must have at least half of their children living in Australia, or more children living in Australia than any other single country. In this regard note that the following are included:

i. Children of both parents, including children of previous marriages or de facto relationships of either parent, including adopted and stepchildren, and children in institutions;
ii. Children of both parents, whether they are dependent or self-supporting, single, married or divorced.

Children whose whereabouts are unknown or cannot be verified are counted as being in their parents' country of usual residence.

- The usual requirements as to health and character apply.

Where to apply
Those who are in Australia when submitting their application for a Contributory Parent visa should lodge the paperwork at their local Department of Immigration.

Applicants who are outside Australia should send their application to the Perth Offshore Parents Processing Centre:

By mail to the Perth Offshore Parents Centre,
Locked Bag 7,
NORTHBRIDGE,
WA 6865,
AUSTRALIA.

By courier to the Perth Offshore Parents Centre,
411, Wellington Street,
PERTH,
WA 6000,
AUSTRALIA.

Strategies
Those Who Have Already Lodged Applications for Parent Visas
Such people should note that it will not be possible to apply for a Contributory Parent visa if they do not withdraw their application for a Parent visa - the new applications forms will have a box to be ticked that will allow "existing applicants" to withdraw their present application. Such applicants will need to make a judgement as to whether their present application will reach the front of the queue before an application for one of the new Contributory Parent visas.

We understand that the Department of Immigration is intending to include a planner on its website in the near future so that persons affected can enter their "queue date" to see how many people are ahead of them in the queue for a Parent visa.

Temporary or Permanent Contributory Parent Visa?
As already noted above, it will be possible to apply for a 2-year temporary Contributory Parent visa, and to apply for a permanent visa during this 2 years. Subject to having the cash available to pay the higher Visa Application Charge, we cannot see a compelling reason to defer lodging an application for the permanent visa, save for tax planning reasons. Some tax measures in Australia (notably the Foreign Investment Fund Rules, and possibly some other planned tax exemptions) do not apply to those who hold temporary visas so long as the individual has not applied for a permanent residency visa. Tax planning should therefore be an integral part of the decision as to which Contributory Parent visa to apply for - please contact us to discuss the interaction of your tax affairs with your application for a Contributory Parent visa.

Generally
As already noted on an earlier news story there is an increased number of Contributory Parent visas available from the end of June. We believe that this will mean that those applying for one of the new visas early in July can look forward to a relatively speedy visa decision (certainly much quicker than would have been the case under the old Parent visas).

If you are in the UK, Go Matilda is ideally placed to assist, as we have offices in the UK and in Australia. This means that over the next few weeks we can assimilate your Contributory Parent visa application in the UK, can forward the paperwork to our offices in Australia, and can then send your application to the Perth Offshore Processing Centre on a next day delivery basis, meaning that your application will be one of the first in the queue.

Please contact us for details about how we can help with your application for one of the new Contributory Parent visas.

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