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
Overview
The Migration Act 1958 was enacted by the Parliament of Australia to regulate the entry, stay, and departure of people from Australia. The Act was introduced to address the need for a comprehensive framework governing immigration and visa matters, ensuring that the flow of people into the country is managed in a way that balances economic, social, and humanitarian considerations. One legislative instrument under this Act is Direction No. 10, issued in 1999 by Philip Ruddock, the Minister for Immigration and Multicultural Affairs, under section 499 of the Act. This Direction pertains to the assessment of required assurances of support within the Assurance of Support (AOS) scheme. The policy objective of this Direction is to ensure that potential assurers for required assurances are assessed to confirm their financial capacity to meet the obligations of repaying any recoverable benefits paid to the migrant during the initial two years post-arrival or visa grant. This assessment model is designed to streamline the process and provide clarity on the financial requirements for assurers, thus enhancing the certainty and efficiency of the AOS scheme.
Scope and Application
The Direction No. 10 under the Migration Act 1958 pertains to the assessment of required assurances of support for certain visa subclasses, including the new Skilled-Australian Sponsored and Skilled-Regional Sponsored sub-classes, which will be effective from 1 July 1999. The purpose of this Direction is to ensure that the assurer is financially capable of meeting the obligations of repaying to Centrelink any recoverable benefits paid to the migrant during the first two years of settlement. This assessment is based on the assurer's demonstrated sustained minimum income over the two financial years immediately prior to giving the assurance and their current taxable earnings continuing at or above the same level. The minimum income threshold is determined by the rate for eligibility of the maximum Family Allowance payment by Centrelink, adjusted for each dependent or assured child (except for the first dependent child) and each dependent or assured adult. This Direction applies to persons acting as assurers for required assurances of support for the specified visa subclasses, and it streamlines the assessment process by providing a clear and objective model for evaluating the financial capacity of potential assurers.
Key Provisions
This legislative instrument, Direction No. 10 under the Migration Act 1958, pertains to the assessment of required assurances of support (AOS) for certain visa subclasses. The primary objective of this Direction, as outlined in section 2, is to ensure that assurers for required AOS are financially capable of fulfilling the commitment to repay any recoverable benefits paid to the migrant during the first two years after arrival or visa grant (sections 2.36 and 2.38 of the Migration Regulations). To achieve this, section 3 of the Direction mandates that delegates consider applications from assurers with due regard to the assurer's financial stability. Specifically, the assurer must demonstrate a sustained minimum income over the two financial years preceding the assurance, as evidenced by Income Tax Assessment Notices from the Australian Taxation Office, and must show current taxable earnings that continue at or above the same level, as evidenced by payslips, contracts, or other relevant documents. The minimum income requirement, as specified in section 4, is the rate for eligibility of the maximum Family Allowance payment by Centrelink, adjusted upwards by $624 for each dependent or assured child (excluding the first dependent child) and by $2000 for each dependent or assured adult. The Direction, which is to take effect from 1 July 1999, aims to streamline the assessment process for required AOS and provide clarity on the financial requirements for assurers.
Under this Direction, assurers for required AOS must meet stringent financial criteria to be considered acceptable. The requirements, as per section 3, include demonstrating a sustained minimum income over the two financial years immediately prior to giving the assurance. This income must be evidenced by Income Tax Assessment Notices issued by the Australian Taxation Office. Additionally, the assurer must show that their current taxable earnings are at or above the same level as demonstrated in the assessment period, with evidence such as payslips, contracts, or other documents. The minimum income requirement, adjusted as per section 4, is the rate for eligibility of the maximum Family Allowance payment by Centrelink, increased by specific amounts for each dependent or assured child and adult. These obligations are intended to ensure that assurers are in a financial position to meet their commitments under the AOS scheme.
Breach of the requirements outlined in this Direction may have significant consequences for assurers. While the Direction itself does not explicitly outline specific offences, penalties, or civil/criminal consequences for non-compliance, it is reasonable to infer that failure to meet the financial criteria for required AOS could lead to the refusal of an AOS application. This, in turn, could impact the visa application process for the migrant. The potential consequences include delays in visa processing, additional scrutiny, and the possibility of visa applications being rejected if the assurer is deemed financially incapable of meeting the AOS commitments. Although the Direction does not specify maximum penalties, the implications of non-compliance could be substantial for both the assurer and the migrant involved.