Earlier this month, new income requirements affecting Parent Visas were passed quietly by the government. A child wanting to sponsor their parents for an Australian Parent Visa may now need to earn an extra $50k in annual salary!
SUMMARY OF CHANGES
When: As of April 2018
Who: This change affects sponsors and applicants of Parent and Remaining/Dependent Relative visas. This may also affect Child visa sponsor and applicants, if an Assurance of Support is requested.
What: The income requirement for sponsors to obtain an Assurance of Support for these visas will drastically increase.
The Parent Visa Formula:
SPONSOR’S REQUIRED SALARY = N x (number of Sponsors + number of migrating adults [e.g. Parents, adult siblings, etc.]+ number of Sponsor’s Partners) + 10% x N x (number of Sponsors’ Children + number of migrating children)
Where N = Current New Start Income cut-off amount = $28,869 (effective until 30 June 2018)
Common Scenario #1:
A child wants to sponsor her 2 parents to Australia. She does not have a partner, any siblings or children.
SPONSOR’S MINIMUM REQUIRED SALARY = N x (1 + 2 + 0) + 10% x N x (0 + 0) = $86,607
Common Scenario #2:
A child with no children wants to sponsor her 2 parents to Australia. She does not have any siblings but has a de facto partner.
SPONSOR’S MINIMUM REQUIRED SALARY = N x (1 + 2 + 1) + 10% x N x (0 + 0) = $115,476
Common Scenario #3:
A child with no children of her own wants to sponsor her 2 parents to Australia. She doesn't have a partner. Her 2 young siblings will also be migrating with her parents.
SPONSOR’S MINIMUM REQUIRED SALARY = N x (1 + 2 + 0) + 10% x N x (0 + 2) = $92,380.80
Common Scenario #4:
A couple with 2 young children wants to sponsor 2 of their parents to Australia. The parents have 3 children who are under 18, all of whom will also be migrating with them.
SPONSORS' MINIMUM REQUIRED SALARY = N x (2 + 2 + 0) + 10% x N x (2 + 3) = $129,910.50
Why: The purpose of this increase is "to protect social security outlays by the Commonwealth while allowing the migration of people who might not otherwise be permitted to come to Australia". Essentially, this increase is to ensure the sponsor has the financial ability to provide for their parents, instead of the parents having to rely on welfare.
What Does This Mean For Me?
If you and your partner do not earn enough according to the calculation method as shown above, you will not be able to obtain the required Assurance of Support. So unfortunately you won't be eligible to sponsor your parents to Australia for a parent visa.
We understand that this news can be distressing. If you are worried about your eligibility to sponsor your parents, we hope to relieve you of your concerns! At the very least, we can help you find some solutions. Head here to book in your FREE 1-to-1 consultation with our principal migration agent today.