Attention Parent Visa Applicants!
Important Assurance of Support changes
There have been changes to the Assurance of Support which is required for certain Australian Visas such as Parent Visa (including Contributory Parent Visa subclass 143 and 173). The changes include significant increase in the assurers’ income requirements as well as increase in the amount of bond lodged for the required relevant period depending on Visa being applied for amount of time.
Changes taking place from 1st April 2018:
• a potential assurer must be in Australia at the time of making the application,
• a person who has an outstanding debt due to the Commonwealth is not eligible for providing an AoS, and
• income requirements for an assurer are enhanced to ensure that the assurer has sufficient financial capacity to support the assuree as well as themselves – see details below.
Changes taking place from 1st April 2019:
Assurance of Support Bond amount increase:
With effect from 1 April 2019, there will be an increase to the values of securities that are required for a mandatory 2 year AoS and a mandatory 10 year AoS. The required values of securities for:
• individuals providing an AoS are:
o for contributory parent visas (10-year AoS) – $15,000 for the primary visa applicant and $6,000 for any adult secondary visa applicant (so, $21,000 for two adult applicants)
o for other visas such as non-contributory parent visas (2-year AoS) – $7,500 for the primary visa applicant and $3,000 for any adult secondary visa applicant
• corporations and unincorporated bodies providing an AoS are:
o for contributory parent visas (10-year AoS) – $30,000 (to cover a maximum of 2 adult assurees),
o for other visas such as non-contributory parent visas (2-year AoS) – $15,000 (to cover a maximum of 2 adult assurees).
Assurance of Support – Increase in the assurer’s income requirement – Single individual assurer:
The income requirement requires the assurer (usually the sponsor) to meet the income requirement for a financial year if the amount of the individual’s income for the year is at least the total of:
(a) the newstart income cut-off amount multiplied by the total of:
(i) one (representing the individual giving the assurance of support); and
(ii) the total number of adults receiving assurance under the assurance of support given by the person; and
(iii) if the individual giving the assurance of support has a partner – one; and
(b) 10% of the newstart income cut-off amount multiplied by:
(i) the number of children of the individual giving the assurance of support; and
(ii) the number of children of any adults receiving assurance under the assurance of support.
The below example shows how the income requirement (that is the total amount of assessable income that an assurer has to demonstrate for the AoS to be accepted) is calculated. For example, the assurer ( usually the sponsor) has a partner and one child. The applicants are the assurer’s parents and their two children under the age of 18. The minimum required income amount of the assurer will be calculated as follow:
• $115,476 (the newstart income cut-off amount of $28,869 multiplied by the total number of individuals giving assurance, persons receiving an assurance, and the partner of the individual giving the assurance of support (in total 4 adults)); and
• $8,661 (10% of the newstart income cut-off amount of $28,869 multiplied by the total number of children of both the individual giving the assurance of support, and the persons receiving assurance (in total 3 children)).
(*This example is based on the rate of newstart allowance as indexed at 1 July 2017, which would apply up to and including 30 June 2018).
Assurance of Support – Increase in the assurer’s income requirement – Joint assurers:
The below section specifies the income requirement for an individual (assurer) who gives an assurance of support jointly with another individual or individuals.
The individual in a joint assurance meets the income requirement for a financial year if the Secretary is satisfied that the combined amount of assessable income of all assurers for that year is at least the total of the following amounts:
(a) the newstart income cut-off amount multiplied by the total of:
(i) the total number of individuals giving the assurance of support; and
(ii) the total number of adults receiving assurance under an assurance of support given by the individual; and
(iii) the total number of partners of the individuals that are jointly giving the assurance of support; and
(b) 10% of the newstart income cut-off amount multiplied by:
(i) the number of children of the individuals giving the assurance of support; and
(ii) the number of children of any adults receiving assurance under the assurance of support.
For example, if two joint assurers (who each have a partner and two children) give an assurance of support for a migrating family of two parents and three children under the age of 18, the combined minimum required income amount of both assurers is the total of:
• $173,214 (the newstart income cut-off amount of $28,869 multiplied by the total number individuals giving the assurance of support, persons receiving an assurance, and the partners of the individuals giving the assurance of support (in total 6 adults)); and
• $20,208 (10% of the newstart income cut-off amount of $28,869 multiplied by the total number of dependent children of both the individuals giving the assurance of support, and the persons receiving assurance under the assurance of support (in total 7 children)).
(*This example is based on the rate of newstart allowance as indexed at 1 July 2017, which would apply up to and including 30 June 2018).
The assurer’s new income requirement commences on 1st April 2018 and applies to submitted Visa applications which require an Assurance of Support and which are yet to receive the AoS request.
The Assurance of Support bond increase commences on 1st April 2019 and apply to submitted Visa applications which require an Assurance of Support and which are yet to receive the AoS request.
Further reading:
http://guides.dss.gov.au/guide-social-security-law/9/4/1/50
https://www.centrelink.gov.au/custsite_aoscalc/aoscalc/eligibilityPage.jsf?wec-appid=aoscalc&wec-locale=en_US#stay
https://www.legislation.gov.au/Details/F2018L00425/Download
