The geography of Australia may be succinctly described as a giant South Pacific island with large deserts in the middle. Australia’s landmass, while larger than the USA, contains approximately 16 million people, compared to approximately 280 million people in the USA, and over 600 million people in Western Europe. One could say Australia is basically empty.

The coasts of Australia generally have temperate climates without excessive heat and with little or no snow. In the tropical north-east, the state of Queensland offers year-round warm weather and fantastic beaches. Most of the population live between Melbourne and Sydney. Perth on the west coast fronting the Indian ocean is the other population center. Australian cities tend to be clean, well-kept and user-friendly. In short, Australia offers a superior quality of life in terms of the quality of food, living space, housing and creature comforts in general.

Australia is a member of the British Commonwealth, subject to the over-riding power of the Queen of England’s Governor General. The Governor General rarely interferes in local politics but does have the power to dissolve Parliament and call new elections. This is the case in any Commonwealth country. The States of Australia have their own parliaments, usually with upper and lower houses. The federal government is also based on a parliamentary system.

Australians, from time to time, debate withdrawing from the Commonwealth and becoming a republic like the USA. The debate generally stems from the Whitlam affair when in 1975 the Governor General dissolved Parliament and essentially deposed the elected Prime Minister, Gough Whitlam; more on this later. Australia offers government-funded pension and health benefits that vary in each state. Australians view themselves as middle-class without great disparity between rich and poor. Visitors will find most Australians outgoing and friendly.

While the government encourages immigration, the immigration programs are strictly managed and the subject of intense public debate. Quotas and the acceptable categories of investors and skilled workers tend to change in accordance with the political tides. Australia will probably maintain a relatively aggressive immigration policy for years to come; if for no other reason than to create a critical mass of population to maintain a continental economy. Whether a healthy economy depends on ever-expanding population is a question open to debate.

History

It is generally accepted that the first humans traveled across the sea to Australia from Indonesia about 70,000 years ago. According to Gavin Menzies, author of 1421 the year China Discovered America, there is evidence that Chinese voyages of discovery reached Australia in or about the year 1422. I highly recommend this book to those who enjoy creative and thought-provoking thinking. This is a gratuitous plug because I’ve never met Mr. Menzies. Europeans, utilizing maps dating from the Chinese voyages, reached Australia in the 16th century. The Portuguese were followed by the Dutch and then followed by the English pirate William Dampier.

Colonization by the British

Captain James Cook reached the east coast in 1770, landing at Botany Bay. Cook claimed the continent for the British and named it New South Wales. Australia, then known as Terra Incognita, or ‘unknown land’, was being marketed in London to unsuspecting migrants prior to Captain Cook’s arrival. The fact is that the British Admiralty was certain Australia existed due to sailors’ reports and because it was marked on Dutch, Portuguese and Venetian maps.

The British were also competing with French and Spanish voyage of discovery fleets to claim the continent. Evidently Cook had secret orders to proceed to Australia and he successfully eluded and beat the rival explorers to the punch.

Settlement by convicts

British interest in Australia was spurred by loss of the penal colony of Georgia to the newly formed United States of America. The expense of colonizing Australia was said to not be worth the reward but for the penal colony problem. In 1787, the First Fleet set sail for Botany Bay under the command of Captain Arthur Philip, the first governor. The first fleet included 11 ships, 750 male and female convicts, four companies of marines and supplies for two years. Philip first arrived in Botany Bay on 26 January 1788, but moved north to Sydney Cove, where he found fresh water and higher land. Most of the first fleet settlers perished more from maltreatment than from starvation. Remember, victors write history so starvation is the party line. Several succeeding fleets were required to secure the Sydney Cove colony.

The penal colony past created a culture that prizes ‘mateship’, i.e. equality and mutual assistance as well as entrepreneurship. These two qualities underpin Australian culture today. During World War II the Australians who were interned in Japanese prison camps, which were horrible, acted more or less as a tribe and had higher survival rates than the Americans, British or Dutch.

Gold, farming and mining

The dry and largely uninhabitable interior prevented colonization of the entire continent. As a result the bulk of the population lives in the coastal cities of Sydney, Melbourne, Perth and Brisbane. In the 1850s non-convict settlers came to prospect for gold in the areas to the north of Melbourne. The influx of settlers resulted in increased farming and mineral extraction as well as the destruction of the aboriginal populations. Mineral extraction, wool and wheat continue to play a major role in the Australian economy.

Australia in the 20th century

Australia converted from a federation of the separate colonies to a country and a member of the commonwealth on 1 January 1901. The nation joined the British and later the USA in most of the wars of the 20th century including World War II and the various wars against communist states. In World War II the Japanese bombed Port Moresby, Darwin and Broome in the north. Things were so desperate that the British, arguably without the knowledge of many Australians, planned to retreat to defensive positions defending Sydney and the south against a Japanese invasion. Many Australians continue to feel a sense of betrayal. The Australians were the first to stem the Japanese tide by defeating them at Milne Bay in New Guinea. After the US success in the Battle of the Coral Sea, Australian troops joined the USA in pushing the Japanese out of the Pacific islands.

After World War II Australia embarked on a campaign to fill the country with immigrants. Australian immigration rules always promoted immigration of those with trades, higher education or the willingness to start a business. The variable, which ebbs and flows according to the political winds, is race under the guise of language. There have been a few periods when Asians could easily migrate to Australia. At some point race and language become an issue and the points allocated to English language ability become more important, thus restricting immigration to English speakers. Today Australia is a land of immigrants. The majority are of English or European origin, with significant Asian and other Muslim communities.

The Cough Whitlam affair

Every Australian knows of the Gough Whitlam affair. If you plan to move to Australia you should know the basic facts also. The Vietnam era unrest saw the election of the Labor government headed by Gough Whitlam. The Whitlam government withdrew Australian troops from Vietnam, abolished national service and higher education fees, instituted a system of free and universally available health care, and supported land rights for Aboriginal people. At the time this was radical stuff bordering on communism.

On 11 November 1975, the governor general (the Queen’s representative in Australia) dismissed Parliament and installed Malcolm Fraser, of the opposition Liberal Party, as prime minister. The rumor at the time was that Whitlam was in league with the communists, causing the British, urged on by the US CIA, to stage a coup to prevent a left-wing take-over. During those years the CIA was thought to be deeply involved in the coup business so there could be some truth to the rumor. The vast majority of the population, regardless of political persuasion, was shocked the governor general exercised what was thought to be an obsolete and undemocratic vestige of royal authority. The irony of this interference in Australian affairs is that it was more than likely unnecessary. Whitlam’s Labor party was loosing popularity and probably would have lost the next election scheduled a few months later.

The Republic of Australia?

The proposal of becoming a republic, which entails replacing the British monarch with an Australian head of state, was put to a vote in 1999. While it is thought that the majority of Australians favored becoming a republic, the question on the 1999 ballot was intertwined with other unpopular issues and failed. Given the appropriate political climate this issue will probably reappear.

Immigrant investors

The Australian program, due to its price, not nearly as popular as the Canadian program, has managed to attract AU $187 million since its inception in 1995. Australia, like Canada, nationalized its program in response to abuses of the rules and numerous cases of the hoodwinking of unsuspecting immigrants. Generally, the Australian program requires an investment of AU$750,000 to AU$2 million in a designated state bond. The state uses the funds to pay for services and infrastructure.

This program requires wealth and skills. Applicants must have accumulated the qualifying assets entirely through their own efforts. This means gifts and inheritances generally don’t count. While the investment program waives the normal requirement of establishing a business within three years of landing, applicants must undertake to go into a business or other self-employment in an undefined ‘medium term’.

Australia offers two investment tracks: independent and state sponsored. The Australian rules are purposefully subjective and allow the examiners great latitude in assessing an applicant’s eligibility. In addition each state of Australia has its own subjective requirements for sponsorship. For these reasons, our discussion will focus on policy rather than the detail of the rules.

Independent investors

Independent investors must maintain their designated investment of AU$1,500,000 for four years and be under 45 years of age. Designated investments are generally bonds issued by a state of Australia. Very few people use this category because of the age requirement and the high investment amount. Not many 45 year olds have AU$1,500,000, particularly at current exchange rates.

Independent investors receive a provisional visa, valid for four years. To transfer to permanent status, the investor must make a further application showing that the investment was maintained, the applicant lived in Australia for two of the four years, and that the applicant has a real and demonstrable commitment to establishing a business or investments in Australia.

General requirements

The general requirements for the provisional visa are:

• You have an overall successful record of business or investment activities with a demonstrable high level of management skills.
• You have a total of at least three years’ experience in actively managing a qualifying business (es) or investment(s).
• In one of the past five fiscal years, you have continually directed a business with at least 10% ownership interest or directly managed eligible investments of at least AU$1,500,000.
• For the two fiscal years immediately preceding your application, your (and your spouse/partner’s) net assets were worth at least $2,250,000.
• At the time of decision, you have made a designated investment of not less than AU$1,500,000 (amount to be determined by the points test).
• You have not been involved in business or investment activities considered unacceptable in Australia.
• You have a genuine commitment to maintain business or investment activity in Australia after the designated investment matures.
• You are able to meet strict health standards and provide evidence that you are of good character.
• You speak vocational English.
• You are 45 years of age or younger.

To sum it up, English-speaking successful business people under 45 with the intent to do business in Australia may qualify.

State sponsored visas

State sponsored visas offer a way around the language and age requirements. Simply put, applicants must first approach the state government for sponsorship. Each state has different rules. Western Australia and Queensland have been very proactive in attracting investors.

As in the case of independent investors, sponsored investors receive a provisional visa valid for four years. Provisional status will be waived if the applicant maintained the investment for four years, and was resident in the sponsoring state or territory for two years of the four-year period.

To qualify for Western Australian sponsorship, business applicants must submit a business plan or demonstrate exceptional business skills. To locate within a 50km radius of the Perth central business district, one must also produce a plan that convinces the state authorities that it will generate employment, develop export markets, replace imports or introduce new skills or technologies. The rules state that investor applicants only need to show compliance with the minimum federal requirements. The truth is somewhere in between. The State of Western Australia obviously wants skills and capital. The more you have of both, the easier it is.

Basic requirements

Once one obtains state sponsorship the basic requirements are:

• You have an overall successful record of business or investment activities.
• You have a total of at least three years’ experience in actively managing a qualifying business(es) or investment(s).
• In one of the past five fiscal years, you have continually directed a business with at least 10% ownership interest or managed eligible investments of at least AU$750,000.
• For the two fiscal years immediately preceding your application, your (and your spouse/partner’s) net assets were worth at least AU$1,125,000.
• At the time of decision, you have made a designated investment of not less than AU$750,000.
• You have not been involved in business or investment activities considered unacceptable in Australia.
• You have a genuine commitment to maintain business or investment activity in Australia after the designated investment matures.
• You are able to meet strict health standards and provide evidence that you are of good character.
• You are 55 years of age or younger at the time of application or the state has waived the age requirement due to exceptional economic benefit to the state.

Conclusion

All investors must also qualify under the points system. The important points concern age, education and language. To some degree, increasing the investment amount and/or receiving state sponsorship may overcome non-qualifying scores.

Australia’s is among the more thorough and efficient immigration systems in the world. That doesn’t mean they process petitions quickly; it simply means they are meticulous. While the concept of purchasing a state bond sounds simple enough, state sponsorship is not always easily obtained and the requirement that one must undertake to engage in some sort of investment activity after the provisional period gives the government a way to revoke petitions. Revocation of the visa for failure to engage in an investment activity is rare but it is a theoretical possibility.

Australian states don’t pay finder’s fees or commissions nor are there schemes such as in Canada to finance the investment capital. This means nobody pushes the investment category, except possibly the state governments. Government being what it is, that means nobody pushes the investor program. Hence the investor and immigration consultant must battle the beauracracy without local allies. On the other hand, Australia offers great lifestyle, standard of living and weather, as well as decent medical care and pensions. The hassle might be worth it.

Mathew Collins and Frans Buysse contributed to this article. Frans Buysse has been active in the field of migration since 1986. He started working as a consultant for the Dutch Emigration Centres and later became immigration officer for the Canadian Embassy. In 1993, he founded Buysse Immigration Consultancy, a team of professional consultants offering a full package of services to prospective immigrants to Australia, Canada, New Zealand and the United States of America.

Email: [email protected]

Mathew Collins is founder of Ambler Collins, one of Europe’s oldest multi-destinational immigration consultancies. Ambler Collins maintains branch offices in London, Sydney and the USA.

Email: [email protected]