Australia's Golden Ticket Visa Was A Big Mistake

The creator of global Magnitsky sanctions – designed to penalize human rights violators and corrupt officials – has cautioned that Peter Dutton's intention to revive a contentious “golden ticket” visa program would be “a big mistake”.

The significant investor scheme allowed foreign nationals who invested $5 million in Australia to obtain a four-year visa, which could be converted to permanent residency. Although it was open to all nationalities, it primarily targeted Chinese nationals, who accounted for over 80% of the visas issued over more than ten years.

The scheme was abolished by the Albanese government in early 2024 due to concerns about potential money laundering and alleged foreign interference. However, last month, Dutton informed a Chinese migration agent at a Liberal party fundraising event that he believed a Coalition government would “bring it back” if elected.

 “Whether we do it before the election, or consider a different design for it – we’ll have to evaluate all that,” Dutton told the migration agent, as initially reported by the Sydney Morning Herald.

These remarks have concerned hedge fund manager and Russian exile Bill Browder, who has advocated for Australia to adopt a stricter approach to corruption and international sanctions.

“These golden visas have been a means for unscrupulous individuals from places like China and Russia to gain legitimacy and infiltrate countries,” Browder stated.

“There has been a trend of countries canceling golden visas. Australia would be making a significant error by reinstating them and inviting bad actors.”

Browder leads the Global Magnitsky Justice Campaign, which aims to “impose targeted visa bans and asset freezes on human rights violators and highly corrupt officials”.

In response to Browder’s comments, the home affairs minister, Tony Burke, remarked, “You should qualify for a visa because it is in the national interest – not because you have cash.”

Dutton and the shadow immigration minister, Dan Tehan, have been contacted for comment.

Transparency International Australia’s chief executive, Clancy Moore, is also urging the Coalition government to abandon any plans to reinstate the visa stream.

“Globally, special investment or ‘golden’ visa schemes have enabled corrupt officials, criminals, and kleptocrats to hide their illicit gains by investing in housing, companies, and businesses, which in turn helps them launder not only the illicit funds but often their reputations through their visa status,” Moore said.

“Australia’s previous ‘golden visa’ program allowed dubious figures to channel large amounts of dirty money into Australia.

When the visa scheme was abolished, then home affairs minister, Clare O’Neil, stated it was not benefiting Australia.

 The visa offers significant benefits. Applicants need only spend an average of 40 days in Australia per year, and there is no English language requirement. Applicants can pay more if their English proficiency is low. They can also bring family members to Australia.

The Productivity Commission recommended abolishing the visa subclass as it was “prone to fraud”.

In early 2023, the commission also concluded there was “no case for retaining this category of permanent visa”. It found that by replacing wealthy investors with skilled and sponsored workers, the economy would benefit by $2.5 billion to $3.4 billion.

Australia’s financial intelligence agency, Austrac, reported in 2016 there were “difficulties in identifying the source of funds and wealth for customers on significant investment visas, as this wealth is often acquired in foreign jurisdictions”.