Australia opted to discontinue its Significant Investor Visa (SIV) scheme, also known as the "golden visa", due to its insufficient economic benefits The main objective of the SIV scheme was to attract foreign investment and encourage domestic innovation. But it drew sharp criticism over rising corruption and has made it easier for wealthy individuals to stash money they are not legally entitled to in Australia notably, Chinese investors and comply with the process, and accounted for 85% of approved applications.
(representative photo of australian investment)
The Australian government concluded that the scheme was not producing the desired results after carefully examining it. Instead, it was making it possible for those who lacked business acumen to join the country as citizens. This action is similar to what other nations have done, such as the United Kingdom, in reaction to worries about the inflow of illicit funds.
Transparency International Australia and other opponents of the programme have endorsed the decision to end the SIV programme. They have drawn attention to the program's flaws and vulnerabilities, which allowed money from abroad to enter the nation more easily. Australia hopes to protect its economy and uphold its reputation as an open and responsible country by cutting off this possible channel for corruption and money laundering.
The end of the SIV programme represents a change in Australia's strategy for drawing in international capital. It is now anticipated that the government will investigate substitute approaches that give precedence to economic expansion while safeguarding the soundness of its financial structure. This ruling serves as a reminder to nations that they need to keep up their aggressive efforts to stop money laundering and preserve the confidence of foreign investors.
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