Migration Act 1958 Direction under section 499 Assessment of Required Assurances of Support (Direction No. 10 of 1999) (Cth)

DIRECTION NO. 10

MIGRATION ACT 1958

DIRECTION UNDER SECTION 499 – ASSESSMENT OF REQUIRED ASSURANCES OF SUPPORT

PREAMBLE:

The Assurance of Support (AOS) scheme has been in place for a number of years as either a required (mandatory) or discretionary criterion for certain visa subclasses where it is considered that applicants will be likely to be high users of the health and welfare systems. The scheme ensures that welfare costs for these migrants are met by an Australian permanent resident or citizen, associated with their application, rather than the Australian community.

The AOS is an undertaking by a person, not necessarily the sponsor, to repay to Centrelink certain recoverable benefits paid during the first two years after arrival or grant of the relevant visa, whichever happens later. Visa subclasses with a required AOS criterion also require lodgement of a refundable bond of $3500 for the principal applicant and $1500 for additional adults on the same application. The bond serves the dual purpose of being a disincentive to social security claims and readily available funds for debt recovery purposes if payments are made.

As part of the Review of the Independent and Skilled-Australian Linked Categories a decision was made to extend the AOS scheme to the new Skilled-Australian Sponsored and Skilled-Regional Sponsored sub-classes which will commence on 1 July 1999. An AOS will be a required criterion for these sub-classes.

The current AOS scheme has been in place since 1991 with very few changes to the Regulations and policy. As part of the review of policy regarding the acceptability of assurers for required assurances the Government believes that it is appropriate to assess potential assurers to ensure that they are in a financial position to meet the undertaking made in signing the assurance – ie to repay to Centrelink any recoverable benefits paid to the migrant during the first two years of settlement.

Discussions between the Department of Immigration and Multicultural Affairs and the Department of Family and Community Services have led to the development of a model for this assessment which is both objective and straightforward in its application. The model is based on minimum taxable income at the level required for eligibility for maximum rate of Family Allowance. In order to apply this test across a range of family compositions the required minimum level threshold is increased for each dependent adult and child (after one) in the assurer’s family and for each adult and child in the family being assured.

The use of this model will streamline the assessment of assurers for required AOSs and will benefit clients not only in terms of faster processing of this function but also in the provision of clear information about the financial requirements of assurers which will lead to greater certainty about the likely outcome of the assessment.

THEREFORE:

I, Philip Ruddock, Minister for Immigration and Multicultural Affairs, hereby give the following Direction pursuant to section 499 of the Act:

1.      This Direction may be cited as Direction – Assessment of Required Assurances of Support – No. 10

2.      Assessments of the acceptability of assurers for required assurances of support should be undertaken with a view to ensuring that the assurer is financially able to meet the undertaking given in accordance with regulation 2.36 of the Migration Regulations and the benefit payable in accordance with regulation 2.38 of the Migration Regulations.

3.      In considering applications from assurers for required assurances, delegates should have due regard to whether:

•      the assurer has demonstrated a sustained minimum income over the two financial years immediately prior to giving the assurance, as evidenced by Income Tax Assessment Notices issued by the Australian Commissioner for Taxation, and

•      the assurer has demonstrated current taxable earnings continuing at or above the same level, as evidenced by payslips contracts or other documents.

4.      For the purposes of this direction, the minimum income referred to in paragraph 3 is the rate for eligibility of the maximum Family Allowance payment by Centrelink, as adjusted upwards by $624 for each dependent or assured child (except for the first dependent child) and by $2000 for each dependent or assured adult.

5.      This Direction is to take effect from 1 July 1999.

Dated this 28th day of June 1999

PHILIP RUDDOCK

Minister for Immigration and Multicultural Affairs