Professionals and other Skilled Migrants

Frequently Asked Questions – Capital Investment Scheme

Background

Prior to 1 September 2007 General Skilled Migration (GSM) visa applicants could earn 5 bonus points if they deposited at least $100 000 in a designated security for a term of not less than 12 months. This is known as the capital investment scheme.

From 1 September 2007 the GSM points test did not include provision for this facility. This change affected all GSM applications lodged after that date.

The States and Territories who had participated in this scheme for applications lodged before 1 September 2007, withdrew their support in December 2007 following allegations of substantial fraud.

This means that currently no State or Territory will issue a security for a GSM visa application in which an investment is a ‘designated security’.

What is a ‘capital investment’?

To meet the requirements for five bonus points for a capital investment or ‘designated security’ for a pre 1 September 2007 GSM visa, applicants must meet the definition in Regulation 2.26C. Only a case officer may decide if an investment meets this definition.

The department wishes to clarify the situation regarding lodging a deposit as an individual investor to meet the requirements for a capital investment. The department is not aware of any investment products currently offered by the four State and Territory Government Authorities listed in the Instrument which meet all the requirements as listed in Regulation 2.26C.

The Regulation provides which State or Territory governments may accept a capital investment, that is:

The conditions a capital investment must meet are that:

Specifically, we are not aware of any individual investment products offered by the four State and Territory Government Authorities which mature in no less than one year and can not be transferred or redeemed before maturity.

Why can’t I just put the money in Commonwealth bonds or a bank?

The Instrument in the Regulations specifies that the capital investment must be deposited in one of the participating Australian State or Territory government authorities. The Regulations do not permit a deposit in Commonwealth bonds.

This provision was available when I lodged my visa, why can’t I access it now?

The Commonwealth and the State and Territory Governments are separate jurisdictions in Australia. Although immigration is the responsibility of the Commonwealth Government, some States offer sponsorship for certain skilled applicants, and also participated by offering the capital investment facility.

It was the prerogative of State and Territory Governments to particpate in or withdraw from the scheme, and the Commonwealth has no power to compel States or Territories to continue in the scheme. Whether the State or Territory Government authorities actually issue a security is, and always was, a matter for them to determine.

Applicants for any visa must meet the requirements specified in the Migration Act 1958 and the Migration Regulations 1994. There is no provision within the legislation to waive the requirement to meet the points required for a GSM visa.

So, those GSM applicants who had deposited a capital investment before the scheme closed received the bonus five (5) points. Those who were unable to lodge their capital investment are now unable to receive the 5 bonus points.

What is the department doing to resolve this issue?

The department is continuing to investigate a number of options within the limits of the legislative framework which applies to the affected visa applications. The options available are listed on this webpage, and we recommend that you access any you may be eligible for.

The department will not finalise those applications which require a capital investment until all available options have been fully explored.

Updates regarding this issue will continue to be provided on the department’s website.
See: What’s New? Recent changes in General Skilled Migration

How long will it take?

We are unable to give a definite time frame regarding the outcome of our investigations. There are complex legal and policy issues associated with any possible options which are still being worked through.

Applicants are advised when they apply for a visa that there is no guarantee of a visa being granted. We suggest that applicants should not take any irreversible actions until they are notified of the outcome of their visa application.

What other visa options do I have?

Applicants should check if their nominated occupation has been added to the Migration Occupation in Demand List (MODL). If your occupation is now listed on the MODL, you will be awarded at least an additional 15 points. In this instance the department will resume processing of your application.
See: Is your occupation in demand?

Applicants could seek to claim the maximum for English language points available under Schedule 6A, ‘competent English’. To achieve ‘competent’ English, an applicant must score at least six (6) on each of the four (4) components of the International English Language Test Scheme (IELTS) test. Applicants who can demonstrate this level of English language proficiency will achieve 20 points on the GSM points test.
Note: under Schedule 6A of the pre 1 September 2007 visas, native English speakers from the United Kingdom, Canada, New Zealand, the United States of America and the Republic of Ireland may have already been awarded the maximum points for English language.

Applicants can seek bonus points for demonstrated proficiency in a ‘designated/community language’. Applicants who can demonstrate this proficiency via NAATI accreditation or overseas qualification (equivalent to an Australian bachelor degree) in a designated language, are eligible for the award of five (5) points on the GSM points test if they have not claimed other bonus points.
See: Australian Community Language

Applicants may be able to claim 'spouse skills' points if their spouse is able to satisfy the relevant age, English language ability, recent work experience or Australian study, and if they have obtained a suitable skills assessment from the relevant assessing authority.
Important: You cannot claim 'spouse skills' points if your spouse is an Australian permanent resident or an Australian Citizen.

Applicants also have the option to reapply under the new GSM visa stream and be assessed against the post 1 September 2007 requirements. However, please note that there are no provisions to refund any  Visa Application Charge (VAC) paid in respect of a withdrawn application and you will need to pay another VAC to lodge a new application.

Detailed information regarding the current offshore and onshore GSM visa subclasses is available on the department’s website.
See: Visa Options

Applicants may also wish to consider employer sponsored visa options.
See: Employer Sponsored Visas

I want to apply for a new GSM visa

Applicants affected by the Capital Investment Scheme who decide to lodge a new visa application must meet all the eligibility criteria for the new GSM visa at the time of making a new application.

You should include a cover note stating that you have a current undecided GSM application.

If you are onshore, and you hold a Bridging Visa (BVA or BVB), to avoid it ceasing, do not withdraw your current application until your new application has been decided.

Applicants who decide to lodge a new GSM visa application must pay a new VAC.

If you decide to lodge a further application, please contact the Adelaide Skilled Processing Centre and provide the details of your new application.

Can my current application be used to grant me a different visa?

The Regulations allow, in limited circumstances, certain applications for one visa subclass or class to be considered against the criteria for another without having to apply for a new visa.

Applicants who have applied for a Skilled – Independent (subclass 136) visa can also be considered for a State/Territory Nominated Independent (subclass 137) visa if they are able to secure nomination by a State or Territory. Applicants should consult the relevant State or Territory website to determine whether their nominated occupation is on a State’s occupation list.
See: Nomination by State/Territory Government

Important: Although the information available from this webpage refers to applicants for a subclass 176 visa, it is also relevant to applicants for a Skilled - Independent (Migrant) Class BN visa.

If you applied for one of the following visas:

you may be eligible to be considered for one of the following:

If you are eligible, you do not need to lodge a further application to be considered against the criteria for an ENS, RSMS or LA visa.
See: Skilled workers permanent visa options

How can I apply for nomination from an employer or State or Territory government?

You can check if a State or Territory is willing to sponsor applicants with your occupation and then contact them directly for nomination.
See: Nomination by State/Territory government

In some circumstances, States may be willing to nominate applicants even if their occupation is not on their State lists. You may wish to approach the State you intend to live in to see if they will nominate you.

For instance, if you are conisdering living in South Australia, you may wish to contact the South Australian immigration manager.
Email: ann.p.johnson@state.sa.gov.au

You may also have your skills and work experience listed on the Skill Matching Database. This provides a database to employers and State and Territory Governments who are willing to nominate applicants who have applied for the following permanent visas:

You will need to provide your personal contact details as well as details of your qualifications and work history. If you have a partner, they may also complete the form and be entered on the database.

If an employer or State and Territory Government is interested in nominating you, they will contact you for further information.

If you applied for one of these visas and now wish to have your employment details listed on the Skill Matching Database, you will need to complete Form 1266.
See:
Form 1266 (152KB PDF file)
Skill Matching Database Overview

Where can I get reliable information?

The department is concerned that there has been considerable speculation by some migration agents and others regarding the resolution of this issue. Some individuals have also misrepresented information provided to them by the department and implied that they have special access to ‘inside information’. This is not the case.

Only the Minister or the department may make an official announcement about immigration matters.

All updates concerning this issue will be provided on the ‘What’s New? Recent Changes in General Skilled Migration’ page.
See: What’s new? Recent changes in General Skilled Migration