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Assurances of Support - Amendments to Income Test and Bond Amounts
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| Author: |
Alan Collett |
| Date: |
Wednesday, January 09, 2008 |
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Some visa applications (notably family visa applications) require what is called an Assurance of Support.
The requirements to be met by the Assurer have changed from the 1st of January, 2008, and in particular the requirements pertaining to:
- The income test to be satisfied by the Assurer, and
- The Assurance of Support Bond
More specifically, effective from 01/01/2008:
- Assurances are no longer required for migrants applying for Skilled visas or Carer visas.
- The amount of the security Centrelink requires for a 2 year Assurance increased from $3,500 to $5,000 for the primary applicant and from $1,500 to $2,000 for a secondary applicant. The total amount required where there are two people covered by a 2 year Assurance has therefore increased from $5,000 to $7,000.
- There are no changes to the amount of the security required for 10 year Assurances, which remains as $10,000 for an individual and $14,000 where there are two people covered by the Assurance.
- There is now an amended income test for Assurers linking the income requirement to the maximum annual basic rate of Newstart Allowance as at 1 July.
- Under the new income test, using current figures, Assurers will be required to have income of $11,931 gross for themselves and $11,931 for each adult they assure.
- These amounts apply to all visas and will be indexed annually.
- Examples of the taxable income required by an Assurer from under the new provisions effective 01/01/2008 are as follows:
o Single Assurer assuring one adult: $23,862
o Single Assurer assuring two adults: $35,793
o Married Assurer assuring one adult: $23,862
o Married Assurer assuring two adults: $35,793
- The income threshold shown above will be increased by the annual base rate of Family Tax Benefit Part A - which is currently $1,890 - for each of the Assurer's dependant children. This threshold calculation only takes into account dependent children of the Assurer who are under 18 years of age and disregards the dependent children in the families of assurees.
- In situations where intending Assurers do not have sufficient Australian taxable income other forms of income may be accepted. This includes a person's foreign income, tax-free pension or benefit paid or payable, reportable fringe benefits and any tax-free salary received during overseas deployment as a member of the Australian Defence Force or Federal Police for the financial year.
- Proof of income will be required for the current year and one of the last two financial years, not two of the last three as has been required to date.
- There are changes to recoverable payments. Parenting Payment and Sickness Allowance will be included and add-ons and smaller payments such as telephone allowance and Crisis payment will only be recoverable where the primary payment is recoverable.
- The full list of recoverable payments are:
* Austudy Payment * Sickness Allowance * Crisis Payment * Special Benefit * Newstart Allowance * Widow Allowance * Parenting Payment * Youth Allowance * Mature Age Allowance * Partner Allowance
- Assurers are no longer allowed to withdraw once the visa has been issued.
Comment
These are significant changes to the Assurance of Support regime. The reduction in the taxable income threshold is welcome, as is the amendment to the tax years in which the income test has to be satisfied - this change is likely to mean that those who have moved to Australia recently will be able to act as an Assurer at least 12 months sooner than was the case under the previous regime.
Note: From the 1st of July 2004 Assurances of Support have been overseen by Centrelink, to whom Assurers will be referred in order that they can complete the relevant documentation. Centrelink can be contacted in relation to the Assurance of Support in Australia on 13 1021, or from overseas on +61 3 6222 3455.
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