In June, Australia ranked the fifth most preferred destination for millionaire migrants, with a net inflow of 2,500 wealthy migrants in 2023. This number has steadily increased by 35 percent over the last decade.
Yet a move by the Albanese government in January to scrap the millionaire migration program, known as the “Golden Ticket,” has raised concerns major investors are turning to other countries.
“They all have investor programs, and investors are looking around the world. Australia is in competition for talent, but we’re also in competition for foreign direct investment,” says Tony Le Nevez, managing partner at Henley & Partners Australia.
The program was initially cut over concerns that it was ineffective and could be misused for money laundering.
Despite the visa scrap, Le Nevez said investors were still keen on Australia.
The country also tops the “Safe Haven 8” list, including Switzerland, Singapore, the United Arab Emirates, New Zealand, Malta, Monaco, and Mauritius.
A safe-haven country is safe, secure, and is largely shielded from the world’s political and economic problems.
“Australia has many natural advantages, and we are missing out because we don’t have an investor program. New Zealand has seen significant uptake in interest in their investor program since the Australian program closed,” he told The Epoch Times.
Ben Watt, a migration lawyer with Visa Envoy, argues that removing the visas has complicated pathways for genuine clients.
“One of my clients runs a successful real estate development company in China. The migration pathway they need to follow now is overly complex and doesn’t suit their needs,” he said.
As per the World Wealth Migration Report, released in June by Henley & Partners, 2024 is shaping up to be a watershed moment in the global migration of wealth.
“An unprecedented 128,000 millionaires are expected to relocate worldwide this year, eclipsing the previous record of 120,000 set in 2023,” it said.
The report attributes this surge to increasing geopolitical tensions, economic uncertainty, and social upheaval.
Watt claims that in the absence of an investment program, clients insist on solutions through different pathways. Some try things like forming a company in Australia or leveraging an existing overseas company.
He explains that this involves applying for an employer-sponsored Temporary Skill Shortage (TSS) visa.
Prospective migrants need to establish substantial operations in Australia, meet high standards, and sponsor themselves for a work visa.
Impact on Angel Investments
Experts argue that restricting millionaire migrants has hurt angel investments in Australia.The visa required applicants to invest $5 million (US$3.2 million) in a managed investment fund, with about 20 percent going into venture capital funding, aiding startups, and small businesses.
Soon after the program was scrapped, Jane Doe, CEO of Startup Australia, announced that this would risk stifling innovation.
Le Nevez believes the impact of the program has started to show.
“Now that’s dried up,” Le Nevez said. He further said that Australia’s venture capital industry is not huge, unlike the United States, so these funds played a crucial role.
Watt echoes this sentiment, emphasising Australia’s successful migration program.
Hope for Millionaire Migrants
The proposed National Innovation Program, expected by November 2024, offers hope. Le Nevez anticipates it will include a pathway for investors.“The new program may require migrants to be seasoned angel investors, like those who’ve invested in venture capital,” Le Nevez said.
The new visa is expected to include stringent application evaluations, monitoring periods, and potential cancellation clauses.
Financial investment alone may not suffice; proven business acumen, links to Australia, and a history of innovation could be critical factors.
Watt believes that starting anew will be disruptive.
“When they bring another one in, which they’re going to have to do, they'll have to start everything again. It’s going to be very hard to start from scratch,” he said.
The Epoch Times reached out to the Home Minister’s office for comment.
Many countries worldwide have scrapped the investment visa. In October 2022, the European Commission urged many European countries to do so as it “posed risks as regards security, money laundering, tax evasion, terrorist financing, corruption and infiltration by organised crime.
With Australia raising its terror threat level to “probable” from “possible,” citing a rise in extremist views, there’s now more than a 50 percent chance of an onshore attack being planned within the next 12 months. Consequently, Australia needs to exercise greater caution in determining who is allowed into the country.
