Australia is one of the finest overseas destinations for the skilled workers and those keen to settle in a very developed global economy. Now a new report shows that it is also the Number 1 destination for the wealthy and the affluent.
As per the latest numbers, made available by the Australian Department of Home Affairs (DHA), the figure of the millionaires pouring into the hotspot has increased to 7260 in the preceding year, in the process, delivering a multibillion-dollar investment boost as Oz emerges as the most preferred overseas hotspot for a large number of the world's richest people.
The statistics allegedly defies assertions that the nation’s high-income tax rate is disheartening the global investors as an Asian-led millionaire boom propels investment in the top Australian Cities of Sydney & Melbourne.
Business Innovation and Investment Scheme
According to the information that we have, visa petitions submitted in the Business Innovation and Investment Scheme-- which comprises investors with over $1 million in business assets--headed north by 74% in 2016-17, up from 5781 to 9051. Reportedly, out of those sanction was given to 7260, vis-à-vis 6484 during 2014-15.
Significant Investor Stream
In the identical class, a fast-track visa enables the administration to use the overseas cash for local ventures in exchange for the prized residency rights in just 40 days, minus the aspirant clearing an immigration test of their education, English skills and employment qualifications.
The Significant Investor Stream necessitates the investors to make an investment of $5 million for Australian bonds, shares and venture capital projects. Reportedly, by March this year, approval was given to 2000 petitions, in the process, delivering a $10 billion bonanza to the already thriving national economy of Down Under, notwithstanding a slow-down post property was left out from the class three years back in 2015.
No Effects of High Income Tax
Though the Business Council of Australia and Ernst & Young reportedly apprised a Senate inquiry in the month of June that the top income tax rate required to be decreased--allegedly, to keep the high-net worth people from tax paradises like Singapore--an AfrAsia Bank report reveals Down Under beat its south-east Asian neighbours during the year gone by in attracting the money-spinning moneymakers.
Great education prospects, a pleasing climate, the safety of women, political security…these were some of the key reasons reportedly that the investors reportedly quoted in the New World Wealth survey of the high-net worth clients.
The report for 150,000 investors discovered that the high growth registered in Oz and New Zealand is especially remarkable, as these nations are already highly developed markets. These make the top 10 wealth per capita rankings globally. It added that usually the nations that begin from a ‘high wealth per capita base’ find it rather difficult to register this kind of wealth growth.
The report stated that Oz had a net-inflow of 10,000 millionaires in 2017 even as the DHA reportedly ratified that high wealth people could also be proffered visas via new visa classes (beyond the business & innovation scheme) to describe the difference between the two numbers.
As per a concerned person, that’s the highest net movement of millionaires to any nation recorded during the year gone by in absolute terms.
Reportedly, the news report also found the political uncertainty of Brexit had been a great help for millionaire movement to the Kangaroo Land, and also the relative strength of the local healthcare structure, vis-à-vis the US, and the absence of inheritance taxes.
Closeness of Asia
The closeness of Oz to Asia and its time zone were also quoted by some of the well-off Asian migrants as important reasons behind their choice.
No Effects of Political Strains between China & Australia
Significantly, the developing political strains between China and Australia seemed to have no impacts whatsoever on private Chinese movement in 2016-17, with the former continuing to be Oz’s topmost source for millionaires, closely shadowed by Hong Kong.
China on Top
China has become the globe’s quickest developing millionaire plant over the previous 10 years, propelled by robust expansion in the high-tech, manufacturing, construction and healthcare segments - a boom that is likely to continue as it changes from a part manufacturer for the US brands towards completed goods.
Reportedly, China was responsible for a staggering 90% of all high-net worth investors moving to Oz in 2016-17, with the remainder made up by Malaysia, South Africa and Vietnam.