Warning corrupt officials may flee China using buy-a-visa scheme

THE government’s millionaire visas — which allow foreigners to buy residency in Australia — could turn into a legal nightmare.

THE Abbott government’s millionaire investment visas — which allow foreign nationals to use their wealth to buy residency in Aus­tralia — could turn into a political and legal nightmare as corrupt ­officials flee China, a leading ­academic has warned.

John Lee of the ANU has warned that safeguards are needed for the Significant Investor Visa and Premium Investor Visitor as Austrade begins a study aimed at revamping the visas’ conditions, but migration agents have warned the government risks killing the scheme if it tinkers too much.

The Australian has reported that pressure is mounting on Australia to tighten its scrutiny of ­applicants following similar moves by Canada and efforts by Beijing to repatriate those who flee its clutches with million of ­dollars in ill-gotten gains.

After the announcement of the $15 million Premium Investor Visa last year, China made it clear it saw the scheme as a potential ­escape route for corrupt officials.

Professor Lee said the government needed to tread carefully. “It depends on the ­extent to which Australia is prepared to co-operate with Chinese authorities in sharing information about applicants, and even deporting ­applicants ... if there is a request from Chinese authorities to do so,’’ he said.

“I’m not sure Canberra would want to go too far down the track of ongoing and intimate co-operation with Beijing on this front … it could be a legal and political minefield for Australia.”

Trade Minister Andrew Robb announced in October that con­ditions for the schemes would be changed and has since indicated he will push for the money, which could previously be parked in bonds, property trusts and managed funds, to be earmarked for venture capital funds or areas where credit flow is poor.

Almost 600 visas have been granted under the SIV scheme since October 2012, almost all to Chinese citizens. The scheme grants permanent residency to foreigners who invest a minimum of $5m after four years, while under the PIV scheme this is shortened to one year.

Melbourne migration agent Grace Xie said restricting the visas to people willing to invest in certain capital-constrained sectors would “kill the program … There is huge competition from other countries’’. Ms Xie said Canada’s scheme required a much lower ­investment of $C800,000 ($838,000), while the US required $US500,000 ($615,000).

Migration agent John Findley played down the chances of the scheme acting as a conduit for ­stolen cash.

“You would have to concede it is possible,’’ he said. “But it’s a sweeping statement and unfair … it misclassifies the vast majority of the individuals coming here.”