Migration (Payment of visa application charges and fees in foreign currencies) Instrument (LIN 23/004) 2023

Administered by Department of Home Affairs

Legislation au F2023L00805 In force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

Issued by authority of the Minister for Immigration, Citizenship and Multicultural Affairs

Migration Regulations 1994

Migration (Payment of visa application charges and fees in foreign currencies) Instrument (LIN 23/004) 2023

1         The instrument, Departmental reference LIN 23/004, is made under paragraph 5.36(1A)(a) of the Migration Regulations 1994 (the Regulations).

2         The instrument repeals Migration (Payment of visa application charges and fees in foreign currencies) Instrument (LIN 22/003) 2022 (No. 2) in accordance with subsection 33(3) of the Acts Interpretation Act 1901. That subsection provides that a power to make a legislative instrument includes a power to amend or repeal that instrument in the same manner, and subject to the same conditions, as the power to make the instrument.

3         The instrument commences the day after registration and is a legislative instrument for the Legislation Act 2003 (the Legislation Act).

Purpose

4         A number of fees and charges are payable in relation to visa applications. Under subregulation 5.36(1A) of the Regulations, the amount of certain fees payable in a foreign currency is worked out on the basis of:

  • if the currency for the payment is specified in a legislative instrument for paragraph 5.36(1A)(a)—the exchange rate specified in the instrument; or
  • for any other currency—the method outlined in subregulation 5.36(2), which provides a formula using an exchange rate obtained on a commercial basis (paragraph 5.36(1A)(b)).

5         The Department bi-annually reviews Acceptable Currencies and Foreign Currency Exchange Rates (AC&FCER) and accordingly updates foreign currency instruments made for paragraphs 5.36(1)(a), (1)(b) and (1A)(a) of the Regulations (see also Migration (Places and currencies for paying of fees) Instrument (LIN 23/005) 2023).

6         As a result of the bi-annual AC&FCER review, it was identified that there were very few transactions to support the continued specification of additional currencies and foreign currency exchange rates. Foreign currency data indicated that in the 2019-20 financial year, there were 8,081 foreign currency transactions made in 32 currencies, for a total of AUD$32.054 million. Comparatively, in the 2022-23 financial year (to 31 January 2023) there were five foreign currency transactions in one currency for a total of AUD$728.

 

7         The reduced number of foreign currency transactions and the use of foreign currency exchange rates is a result of the Department progressively moving away from paper applications and cash transactions to electronic applications and payments through the IMMI account platform.

8         Accordingly, the purpose of the instrument is to specify the Australian dollar and exchange rate of 1.00000 for paragraph 5.36(1A)(a) of the Regulations. The expected benefits of this change include:

  • removing foreign currency volatility
  • consistency with Department of Foreign Affairs and Trade (DFAT) processes to minimise cash handling risk
  • consistency with citizenship fees that utilise the AC&FCER and now accept only the Australian dollar (from July 2022)

9         The Department will review the changes to the instrument periodically. If necessary, the instrument can be updated to revert back to specifying foreign currencies.

Consultation

10     As only five foreign currency transactions have been made in the 2022-23 financial year (to 31 January 2023) it is deemed that this instrument affects very few people and so consultation was not considered necessary.

11     The Office of Impact Analysis (OIA) was consulted and considered that the instrument dealt with matters of a minor or machinery nature and no regulatory impact statement was required. The OIA reference number is 25184.

Details of the instrument

12     Paragraph (a) specifies the Australian dollar for paragraph 5.36(1A)(a) of the Regulations.

13     Paragraph (b) specifies the exchange rate for the currency mentioned in paragraph (a) is 1.00000, for paragraph 5.36(1A)(a) of the Regulations. The intention of this paragraph is to make clear that the formula in subregulation 5.36(2) should not be used when payment is made in the Australian dollar.

14     Paragraph (c) repeals Migration (Payment of visa application charges and fees in foreign currencies) Instrument (LIN 22/003) 2022 (No. 2).

Parliamentary scrutiny etc.

15     The instrument is exempt from disallowance under section 42 of the Legislation Act. This is because under paragraph (b) of item 20 of the table in section 10 of the Legislation (Exemptions and Other Matters) Regulation 2015, the instrument is exempt from disallowance and therefore a Statement of Compatibility with Human Rights is not required.

16     The instrument is appropriate to be exempt from disallowance as it concerns matters of an administrative nature. Updating legislative instruments that specify administrative matters allows for consistent internal management of the migration policy framework in accordance with Departmental resources and arrangements.

17     The instrument was made by a delegate of the Minister, in accordance with paragraph 5.36(1A)(a) of the Regulations.

Overview

The Migration Regulations 1994 (the Regulations) were amended in 2023 to address the issue of minimal foreign currency transactions for visa application fees and charges. This was achieved through the enactment of the Migration (Payment of visa application charges and fees in foreign currencies) Instrument (LIN 23/004) 2023, which was issued by authority of the Minister for Immigration, Citizenship and Multicultural Affairs. This legislative instrument was designed to respond to the declining use of foreign currencies in visa application payments, a trend attributed to the increased adoption of electronic applications and payments. The policy objective of this instrument is to enhance consistency in payment methods and reduce foreign currency volatility, aligning with the Department of Foreign Affairs and Trade's practices of minimising cash handling risks. The instrument specifies that, effective from its commencement, only the Australian dollar is to be accepted for the payment of visa application fees and charges, with an exchange rate of 1.00000 for the Australian dollar. This change was implemented to streamline the payment process and to reduce administrative burdens associated with foreign currency transactions, which have seen a significant decline over recent years. The instrument also repeals the previous Migration (Payment of visa application charges and fees in foreign currencies) Instrument (LIN 22/003) 2022 (No. 2), ensuring that the legislative framework is current and reflects the practical realities of contemporary visa application processes.

Scope and Application

The Migration (Payment of visa application charges and fees in foreign currencies) Instrument (LIN 23/004) 2023, made under the Migration Regulations 1994, specifies the conditions under which visa application charges and fees can be paid in foreign currencies. This instrument applies to the payment of certain fees and charges in relation to visa applications, where the amount of fees payable in a foreign currency is determined according to the specified exchange rates or, if not specified, by a formula using a commercial exchange rate. The instrument repeals the previous instrument (LIN 22/003) 2022 and updates the currency specifications to reflect the current administrative practices and the reduced number of foreign currency transactions. This legislative instrument is applicable to the Commonwealth level, as it is made under the authority of the Minister for Immigration, Citizenship and Multicultural Affairs. The instrument specifies that the Australian dollar is the currency to be used for payments under the specified regulation, with an exchange rate of 1.00000, and it exempts itself from disallowance, considering its administrative nature.

Key Provisions

The key provisions of this instrument (LIN 23/004) are contained in paragraphs (a) to (c) of the explanatory statement, which detail the changes being made to the Migration Regulations 1994. Paragraph (a) specifies that payments for certain visa application fees must now be made in Australian dollars, replacing the previous requirement to accept payments in foreign currencies as outlined in Migration (Payment of visa application charges and fees in foreign currencies) Instrument (LIN 22/003) 2022. Paragraph (b) sets the exchange rate for the Australian dollar at 1.00000, clarifying that the formula in subregulation 5.36(2) should not be used for payments made in Australian dollars. Paragraph (c) formally repeals the previous instrument (LIN 22/003) in line with subsection 33(3) of the Acts Interpretation Act 1901. This instrument aims to simplify the payment process by reducing the number of currencies accepted and aligning the department's practices with those of the Department of Foreign Affairs and Trade (DFAT) and citizenship fees, which also now only accept Australian dollars. The obligations imposed by this instrument include ensuring that all payments for specified visa application fees are made in Australian dollars. This change is expected to bring consistency to the payment process, reduce volatility associated with foreign currency exchange rates, and align with DFAT's processes to minimise cash handling risk. The instrument also requires that the exchange rate for the Australian dollar is set at 1.00000, making it clear that the formula in subregulation 5.36(2) should not be used for Australian dollar payments. Additionally, the instrument mandates the repeal of the previous instrument (LIN 22/003) to ensure that only the current regulations are in effect. In terms of consequences for non-compliance, the explanatory statement notes that this instrument is exempt from disallowance under section 42 of the Legislation Act. This means that no formal parliamentary scrutiny or disallowance process is required. However, failure to comply with the new requirements, such as continuing to make payments in foreign currencies, could result in the application not being processed. There are no specific penalties outlined in the explanatory statement for non-compliance with the new payment requirements; however, the administrative nature of the changes suggests that the primary consequence would be procedural rather than financial. Overall, this instrument streamlines the payment process for certain visa application fees by specifying that payments must be made in Australian dollars and setting the exchange rate at 1.00000. The changes are intended to bring consistency and reduce complexity in the payment process, aligning with broader departmental practices. The instrument imposes clear obligations on applicants and the department to adhere to the new payment requirements, although specific penalties for non-compliance are not detailed.

Legal classification tags

Area of Law
Immigration & Refugee Law
Instrument
Legislative Instrument
Concepts
Repeal & Amendment
Foreign Currency Exchange Rates
Administrative Provisions

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.