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This is possible because a person or organisation (the assurer) agrees to support the new migrant (the assuree) for a period of time after they arrive in Australia so that the assuree will not have to rely on payments from Centrelink. Most newly arrived residents have to live in Australia as permanent residents for two years before they can get most Centrelink income support payments. By signing an assurance, the assurer agrees to financially support the assuree and also commits to repay any recoverable Centrelink payments made to the assuree during the period of the assurance. This is either two or ten years, depending on the visa subclass. The Department of Immigration and Citizenship (DIAC) decides which visa applications require an assurance while Centrelink assesses the capacity of prospective assurers to provide an assurance. A number of changes to the AoS scheme were announced in the 2007 Federal Budget. These changes came into effect on 1 January 2008:
- Assurances will no longer be required for migrants applying for Skilled visas or Carer visas.
- The amount of the security Centrelink requires for a two-year assurance increased from $3,500 to $5,000 for the primary applicant and from $1,500 to $2,000 for a secondary applicant. The total amount required where there are two people covered by a two-year assurance has therefore increased from $5,000 to $7,000. There will be no changes to the amount of the security required for ten-year assurances. This will remain as $10,000 for an individual and $14,000 where there are two people covered by the assurance.
- Organisations that wish to be assurers no longer have to satisfy an income test but must now provide a bank guarantee in all cases including those where the visa applied for does not require a security. The security required is $10,000 for two-year assurances and $20,000 for ten-year assurances, regardless of whether the assurance covers one or two adults.
- Organisations will be limited to assuring two people at any time, as is currently the case for individuals.
- There will be a simpler income test for assurers linking the income requirement to the maximum annual basic rate of Newstart Allowance as at 1 July. Currently assurers must have income of $11,931 gross for themselves and $11,931 for each adult they assure. These amounts apply to all visas and will be indexed annually.
Examples of income required by an assurer:
- o Single assurer assuring one adult = $23,862
- o Single assurer assuring 2 adults = $35,793
- o Married assurer assuring one adult = $23,862
- o Married assurer assuring two adults = $35,793
The income threshold shown above will be increased by the annual base rate of Family Tax Benefit Part A - which is currently $1,890 - for each of the assurer's dependant children. This threshold calculation only takes into account dependent children of the assurer who are under 18 years of age and disregards the dependent children in the families of assurees.
In situations where prospective assurers do not have sufficient Australian taxable income other forms of income may be accepted. This includes a person's foreign income, tax-free pension or benefit paid or payable, reportable fringe benefits and any tax-free salary received during overseas deployment as a member of the Australian Defence Force or Federal Police for the financial year.
Proof of income will be required for the current year and one of the last two financial years, not two of the last three as is currently required.
The provision to consider the value of a person's assets if the income level is not satisfied has been removed.
There are changes to recoverable payments - Parenting Payment and Sickness Allowance will be included and add-ons and smaller payments such as telephone allowance and Crisis payment will only be recoverable where the primary payment is recoverable.
The full list of recoverable payments are:
* Austudy Payment * Sickness Allowance * Crisis Payment * Special Benefit * Newstart Allowance * Widow Allowance * Parenting Payment * Youth Allowance * Mature Age Allowance * Partner Allowance
Assurers will no longer be allowed to withdraw once the visa has been issued.
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