The Australian Department of Immigration is currently considering options for applicants affected by the withdrawal of the States and Territories from the Capital Investment scheme.

Prior to 1 September 2007 General Skilled Migration visa applicants could earn 5 bonus points if they deposited at least $100,000 in a designated security for a term of not less than 12 months.

The NSW, Queensland and NT Treasury Corporations and the SA Government Financing Authority had been State and Territory authorities participating in these arrangements (the Western Australia Government withdrew from 1 July 2007).

Each of the participating States and Territories have notified the department of their withdrawal of support for the use of treasury bonds for this purpose.

This means that no State or Territory will issue a security in which an investment is a ‘designated security’. There is no compulsion on States or Territories to participate in the scheme. Whether the State or Territory government authorities actually issue a security is ultimately a matter for them to determine.

The new visa arrangements for the GSM Program introduced from 1 September 2007 did not include the provisions for the lodgment of designated securities. The closure of the arrangements will only affect visa applications lodged before 1 September 2007.

We’ll provide more news when we have it..