EXPLANATORY STATEMENT
Migration Regulations 1994
SECURITIES IN WHICH AN INVESTMENT IS A DESIGNATED INVESTMENT FOR THE PURPOSES OF SUBCLASSES 162, 165, 188, 405, 888, 891 & 893
(Regulation 5.19A)
- This Instrument is made under regulation 5.19A of the Migration Regulations 1994 (‘the Regulations’).
2. Regulation 5.19A specifies that the Minister may specify by Gazette Notice a security issued by an Australian State or Territory government authority as a security in which an investment is a designated investment for the purposes of Schedule 2 to the Regulations.
3. This Instrument revokes Instrument IMMI 12/064. The purpose of the Instrument is to allow specified State and Territory government securities to be accepted as designated investments for applicants applying for one of the following visa Subclasses: 162, 165, 188, 405, 888, 891 or 893. Hence the Instrument specifies parts 162, 165, 188, 405, 888, 891 and 893 of Schedule 2 to the Regulations.
4. The new Instrument operates to include a new designated investment, Waratah Bonds, issued by the New South Wales Treasury Corporation.
5. Consultation was undertaken before the Instrument was made with the NSW Treasury Corporation in relation to the inclusion of Waratah Bonds. Otherwise, Pursuant to subsection 18(1) of the Legislative Instruments Act 2003 consultation was not necessary as the remaining changes are minor or machinery in nature and do not substantially alter existing arrangements.
6. The Office of Best Practice Regulation has advised that a Regulation Impact Statement is not required (OBPR Reference 14128).
7. Under section 44 of the Legislative Instruments Act 2003 the Instrument is exempt from disallowance and therefore a Human Rights Statement of Compatibility is not required.
8. This Instrument, IMMI 12/106, commences on 24 November 2012.
Overview
The Migration Regulations 1994, enacted to govern the migration framework in Australia, introduced the concept of designated investments to ensure that applicants for certain visa subclasses can demonstrate financial stability and self-sufficiency. This regulatory amendment was enacted by the relevant legislature to address the need for flexibility and specificity in the types of investments that can be considered for visa applications under specific subclasses. The purpose of this particular legislative instrument is to specify securities issued by Australian State or Territory government authorities as eligible designated investments for applicants seeking visas under subclasses 162, 165, 188, 405, 888, 891, and 893. This change was made to accommodate a broader range of investment options, thereby facilitating the visa application process for those who hold such securities.
Scope and Application
The Migration Regulations 1994 Instrument IMMI 12/106 applies to individuals and entities seeking to apply for one of the specified visa subclasses: 162, 165, 188, 405, 888, 891, or 893. The Instrument facilitates the acceptance of specified State and Territory government securities, including Waratah Bonds issued by the New South Wales Treasury Corporation, as designated investments for these visa applicants. This legislative instrument is made under regulation 5.19A of the Migration Regulations 1994 and revokes the previous Instrument IMMI 12/064. While the inclusion of Waratah Bonds required consultation with the relevant government entity, the remaining changes are classified as minor or machinery in nature, thus exempting them from broader consultation requirements. The Instrument operates nationally, aligning with the overarching Migration Regulations 1994, and it came into effect on 24 November 2012.
Key Provisions
Regulation 5.19A of the Migration Regulations 1994 provides the Minister with the authority to specify, via a Gazette Notice, certain securities issued by Australian State or Territory government authorities as designated investments for specified visa subclasses (paragraph 2). This particular legislative instrument, IMMI 12/106, revokes a previous instrument, IMMI 12/064, and includes new securities, specifically Waratah Bonds issued by the New South Wales Treasury Corporation, as designated investments under the mentioned visa subclasses: 162, 165, 188, 405, 888, 891, and 893 (paragraph 4). This change is aimed at broadening the scope of acceptable investments for applicants of these visa subclasses.
The new instrument imposes an obligation on the Minister to ensure that Waratah Bonds, issued by the New South Wales Treasury Corporation, meet the criteria to be designated as investments for the specified visa subclasses. This entails the Minister verifying the eligibility and suitability of these bonds as investments under the visa application process (paragraph 4). The Minister must also ensure that all other securities specified in the Regulations continue to meet the criteria for designated investments and that these securities are regularly reviewed and updated as necessary.
Failure to comply with the provisions of this instrument could lead to various consequences. For applicants, not adhering to the designated investment criteria could result in the rejection of their visa application or the imposition of additional requirements. For the New South Wales Treasury Corporation, any failure to meet the criteria set forth by the Minister could result in their bonds not being recognised as valid investments under the specified visa subclasses. Although the explanatory statement does not detail specific penalties for breaches, such failures could lead to applicants needing to provide alternative investments or facing delays in their visa processing.
The instrument exempts itself from disallowance under section 44 of the Legislative Instruments Act 2003, meaning that it does not require a Human Rights Statement of Compatibility (paragraph 7). Additionally, the Office of Best Practice Regulation has determined that a Regulation Impact Statement is not required for this instrument (paragraph 6). The instrument came into effect on 24 November 2012 (paragraph 8).