AUSTRALIA

Name of country

• AUSTRALIA

Region

• Oceania, continent between the Indian Ocean and the South Pacific Ocean

Population

• 25,809,973 (July 2021 est.)

General Introduction

• Australia is one of the world’s wealthiest countries, with a sterling reputation. It is a developed, multi-cultural country with a high Human Development Index that provides its citizens with a high quality of life, economic freedom, and effective protection of civil liberties and political rights.

Wifi Speed

• Australia’s average download speed is 58.83Mbps with an average upload speed of 21.44Mbps

Electrical outlet

• All power sockets in Australia provide a standard voltage of 230V with a standard frequency of 50Hz. You can use all your equipment in Australia if the outlet voltage in your own country is between 220V-240V. 

Per Capita GDP 

Real GDP per capita

• $49,854 (2019 est.)
• $49,545 (2018 est.)
• $48,871 (2017 est.)

Climate

• generally arid to semiarid; temperate in south and east; tropical in north

Residence-by-Investment

• Securing permanent residency in Australia through the Business, Investor, and Innovator visa streams are quickly becoming not just a popular but also a necessary component of many successful emigration applications. It has become the fastest-growing area of immigration law, and Australia has become the world’s most popular investment destination.

Investment

• Investment amount: from AUD 200,000
• Time to obtain: 4 years
• Number of visa-free countries: 181
• Citizenship for a family member

There are four visa streams under the Business Innovation and Investment Program.

The Business Innovation and Investment Program includes the following:

• The Business Innovation Stream — Individuals must pass a points test, have a successful business career with a business turnover of at least AUD 750,000, and have net assets of AUD 1.25 million. They must also obtain and maintain substantial ownership and management of an Australian business and reside in the country for at least one year.
• The Investor Stream — Individuals must pass a points test, commit AUD 2.5 million into a complying Australian-managed investment fund for the duration of the provisional visa validity, and reside in the country for at least two years.
• The Significant Investor Stream — Individuals must commit at least AUD 5 million into a complying Australian-managed investment fund for the duration of the provisional visa validity and reside in the country for an average of 40 days a year for primary visa holders.
• The Entrepreneur Stream — Individuals must receive endorsement by a state or territory government and reside in the country for at least two years.

The above temporary visas offer a direct pathway to permanent residence after three years, subject to meeting certain residence and investment or business turnover requirements. The initial visa will be valid for five years. There is no direct Australia Citizenship by Investment programme although citizenship can be applied for after 3-4 years residency including 1 year of Permanent Residency.

Processing Time

• The visa application procedure in Australia is highly structured and is governed by laws, regulations, policies, and legislative instruments. The Department of Home Affairs has the authority to cancel visas, undertake compliance or monitoring exercises, control the professional migration agent industry, and provide for legal review of visa decisions, in addition to visa application regulations.
• Certain visa applications for people living outside of Australia must be reviewed by an immigration attaché at the Australian embassy closest to them. Other visa applications will be reviewed by an Australian immigration office. For all temporary and permanent residency visa applications, the Department of Home Affairs is moving toward electronic online submission.
• The time it takes to process an application varies greatly based on the type of visa requested, however it usually takes 12 months.
• The Department of Home Affairs employs a priority processing tier, which prioritizes visa applications that provide the greatest economic advantage to the country (skilled visas) over those that provide less economic benefit (family visas). The Department of Home Affairs publishes its service standards for application time frames on its website, which are updated on a regular basis.
• Physical visa labels are no longer used in Australia because visas are linked to passports electronically. Individuals and companies in Australia can use an online site to check a visa holder’s visa status (as well as any applicable work conditions).

Key Benefits

• High standard of living
• Multicultural
• Political, social, and economic stability
• Objective, merits-based immigration system with predictable outcomes
• Compulsory 10% superannuation or pension payable by employers

Requirements

General Requirements of Investor Visa Australia

• Below 55 year-old (exempted if you are investing a much higher amount)
• Willing to invest at least 800,000 AUD or more into complying investment(s)
• May need to pass the points test
• Show proof of business or investment track records (exempted if you are investing a much higher amount)
• Require to have state sponsorship and there are limited quotas in every state

Procedures and Time Frame

• An application typically takes 24–36 months to complete. By the decision of the Austrian government, successful applicants are granted full citizenship of the Republic of Austria and can apply for a passport immediately. Within a few days, passports are issued.
• Because it falls under government regulations relating to privacy or official secrets, the grant of citizenship is not made public and is not communicated to any other country.

Natural Resources

• alumina, coal, iron ore, copper, tin, gold, silver, uranium, nickel, tungsten, rare earth elements, mineral sands, lead, zinc, diamonds, natural gas, petroleum; note – Australia is the world’s largest net exporter of coal accounting for 29% of global coal exports

Ethnic Groups

• Austrian 80.8%, German 2.6%,  Bosnian and Herzegovinian 1.9%, Turkish 1.8%, Serbian 1.6%, Romanian 1.3%, other 10% (2018 est.)

Languages

• English 72.7%, Mandarin 2.5%, Arabic 1.4%, Cantonese 1.2%, Vietnamese 1.2%, Italian 1.2%, Greek 1%, other 14.8%, unspecified 6.5% (2016 est.)

 Religion

• Protestant 23.1% (Anglican 13.3%, Uniting Church 3.7%, Presbyterian and Reformed 2.3%, Baptist 1.5%, Pentecostal 1.1%, Lutheran .7%, other Protestant .5%), Roman Catholic 22.6%, other Christian 4.2%, Muslim 2.6%, Buddhist 2.4%, Orthodox 2.3% (Eastern Orthodox 2.1%, Oriental Orthodox .2%), Hindu 1.9%, other 1.3%, none 30.1%, unspecified 9.6% (2016 est.)

Median Age

• total: 37.5 years
• male: 36.5 years
• female: 38.5 years (2020 est.)

Urbanization

• urban population: 86.4% of total population (2021)
• rate of urbanization: 1.27% annual rate of change (2020-25 est.)

Physician density

• 3.68 physicians/1,000 population (2017)

Government type

• federal parliamentary democracy under a constitutional monarchy; a Commonwealth realm

Unemployment Rate

• 5.16% (2019 est.)
• 5.29% (2018 est.)

Taxes

Headline Personal Income Tax Rate (highest marginal tax rate) – 45%

Headline Corporate Income Tax Rate (excluding dividend taxes) – 30% (standard rate), 26% (base entity rate)

Territorial Tax / Worldwide Tax / Hybrid 

Many countries levy income taxes on their residents’ or citizens’ worldwide earnings. In Australia, Residents for tax purposes must pay income tax on all of their income, including statutory income like capital gains and dividends. If a country’s government decides to tax its residents on a ‘worldwide’ basis, the existence of tax havens and offshore financial centers becomes a significant concern because income from passive investments may not be disclosed and taxed in Australia.. The Australian Government has recently funded ‘Operation Wickenby’, in an attempt to detect Australians using tax havens and reinforcing the integrity of a worldwide taxation system. This paper will start with a discussion of the philosophical basis for Australia having adopted a ‘worldwide’ system of taxation as opposed to a ‘territorial system’ and then examine the problems with collecting income tax on foreign-sourced income generated by Australian residents. The paper will then draw a conclusion as to the merits of Australia adopting a territorial system for taxing foreign income and whether the worldwide system should be abandoned altogether.