Parent visa application charge limit and indexation formula
1 July 2003 - Legislation change
Client summary
From 1 July 2003, immigration law has been amended to give effect to changes to the Migration (Visa Application) Charge Act 1997 to allow for a substantially increased charge limit and a specific indexation mechanism for certain parent visas. The changes are detailed below.
Technical details
Additional information: On 27 June 2003 and 1 July 2003, 4 new parent visa classes, each comprising one subclass and known generally as contributory parent visas, are commencing. These new classes are in addition to the existing classes in the Parent Visa Program: Parent (Class AX) and Aged Parent (Class BP).
The contributory parent visa classes and subclasses for those applicants who usually reside outside Australia are:
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Contributory Parent (Class CA) (Subclass 143 (Contributory Parent) visa ); and
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Contributory Parent (Temporary) (Class UT) (Subclass 173 (Contributory Parent (Temporary) visa).
The start date for these two classes is 27 June 2003.
The contributory parent visa classes and subclasses for those applicants who usually reside in Australia are:
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Contributory Aged Parent (Class DG) (Subclass 864 (Contributory Aged Parent) visa); and
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Contributory Aged Parent (Class UU) (Subclass 884 (Contributory Aged Parent (Temporary) visa).
The start date for these two classes is 1 July 2003.
Applicants for a contributory parent visa are subject to two visa application charges:
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at time of lodgement of their application, a first visa application charge; and
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just prior to grant of a contributory parent visa, a second visa application charge.
Given that the second visa application charge is substantial (up to $25,000 for the 2003-2004 financial year) and that such an amount is to be unique to contributory parent visas, a visa application charge limit specific to contributory parent visas has been set.
In addition to setting a charge limit, a mechanism for annually indexing the second visa application charges for contributory parent visas has been introduced. This mechanism is a formula known as the "Contributory Parent Visa Composite Index". The formula has been developed by the Australian Government Actuary to ensure that the charges for a contributory parent visa increase in a way that accurately reflects the increase in health costs. This new index is necessary because parent visa health costs have been found to increase over time at a rate faster than the Consumer Price Index, the normal index used in adjusting charges levied by the Department.
Transitional arrangements: Not applicable
Forms: Not applicable
Instructions: Not applicable
Effect on delegations: Nil
Effect on systems: ICSE and IRIS have been updated to reflect the legislative amendments with effect from 1 July 2003.