Australian Immigration News August 09

News Introduction

Our Internet Marketer Rusty Dwyer recently admitted to us that our recent Immigration Newsletters and Immigration blogs were getting him down and he suggested that we “lighten up” because our articles were not only depressing him but sending the wrong message to potential migrants to Australia.

His advice came as a bit of surprise to us because we always thought that the "gritty realism" which punctuated our recent publications were, like muesli, good for the constitution however our mood was lightened by a recent article that appeared in The Age newspaper on 21 July entitled “Economy set to defy gloom”. We have copied that article towards the end of this newsletter not only to appease Rusty but also to show prospective Australian migrants that Australia is on the road to economic health.

Upcoming Australian Immigration Seminars

Singapore:
Seminar 8 August – Orchard Hotel (10am to 11.30am)
Consulting: Afternoon of 8 August, whole day 9 August and morning of 10 August.

 

Malaysia:
Kuala Lumpur:
Seminar 10 August – Hilton, 3 Jalan Stesen Sentral, 50470, Kuala Lumpur (7.30pm to 9pm)
Consulting: 11, 12 and morning of 13 August.

South Africa:
Johannesburg:
Seminar 6 August – Michelangelo Hotel (7pm – 8.30pm)
Consulting: 7, 8, and 9 August

Durban:
Seminar 10 August – Riverside Hotel (7pm – 8.30pm)
Consulting: 11 and 12 August

Cape Town:
Seminar 13 August – Commodore Hotel (7pm – 8.30pm)
Consulting: 14 and 15 August

Who Moved My Cheese?

I wonder how many migrants read "Who Moved my Cheese?" by Dr Spencer Johnson.

The book is a very short story about change that takes place in a maze where 4 characters look for "Cheese" -- cheese being a metaphor for what we want to have in life, whether it is a job, a relationship, money, a big house, freedom, health, recognition, spiritual peace, or even just a better quality of life.

The Story:

The story describes 2 mice and 2 “little people”running around in a maze and looking for cheese. They happen to come across a great supply cheese and live close to that source. When the cheese begins to run out, 2 of the 4 go off looking for more. They can tell that the cheese won't be there for much longer and that it's getting old and mouldy. So they adapt to the situation and forge ahead, ultimately finding more cheese. The 2 other little people, however, get too comfortable when they find the cheese and don't believe it will ever disappear. When the cheese runs out, they remain, waiting for more cheese to appear. They think everything will be fine. They didn't smell the rotten cheese.

The cheese runs out and they begin to starve. They're scared to move. They don't adapt and resist change. Eventually, one of those 2 little people leaves and finds more cheese and brings the other one over to the ‘good side'.

The Moral:

The moral of the story is that we need to adapt to the changing circumstances around us and that our cheese (whatever it is) may not always be there and we need to recognize that the supply of "cheese" should not be taken for granted.

Immigration Context:

We can tell from the number of the people finding our website and attending one of our free seminars that there are many people out there that recognize that the supply of cheese in their home country might be running low or else becoming decidedly "gamey".

It's easy to look back in history and wonder why certain populations didn't see the writing on the wall or recognize that the cheese might be diminishing. In the South African context this writing may take the form of increased violence, crime, lack of opportunities in workplace and education because of affirmative action programs, increased corruption, declining educational standards and general degeneration of the moral fabric of society.

In a Singaporean context the writing may take the form of long working hours, comparatively low wages, and too much pressure on children to achieve academically, high youth suicide rate, overpopulation, lack of recreational facilities and generally dissatisfaction with quality of life.

People resist change because let's face it change is difficult and stressful. This is never truer than in an immigration context when one is going to leave one's friends, family members and comfort zone and move to a new country to improve the quality of one's life.

I hope that I am not stretching the analogy too far but many may be thinking that the cheese supply might be diminishing but how do we know that by immigrating to Australia we are guaranteed a better cheese supply?

I'm not advocating that people should without any preparation or planning, move countries at the slightest hint that there are concerning signs, however I think every responsible individual owes it to themselves and their families to at least read the writing when it does appear on the wall and investigate opportunities to improve one's lot. One doesn't necessarily need to sever one's ties with one's home country at the slightest hint that there may be writing that appears on the wall but one should recognize that writing for what it is and investigate opportunities to improve one's life.

Attending our free seminar and arranging a consultation for a nominal fee are just 2 small steps that one can take to investigate whether there might be more/better cheese in Australia. 

Australian Business Visas - Yes, You Can Buy Your Way Into Australia!

The Australian migration program recognises that people who have owned their own business have skills and attributes that will benefit Australia. Thus, the aim of the Business Skills Category is to attract those individuals with a proven track record of business ownership or investment who are committed to using their business and/or investment knowledge and skills in Australia.

The majority of applicants under the Business Skills Category will come to Australia initially on a temporary or provisional visa valid for a period of four years and, after they have met certain requirements of business or investment activity, may be eligible for a permanent residence visa. However, getting involved in a new business, in a new country is not easy, whether it is by way of purchasing an existing business, entering into a partnership or setting up a new business from scratch. It is for this reason that many business migrants choose to use the Investor Category to "buy their way into Australia".

The Investor Category is for people who are able to prove that they have a total of at least three years experience of direct involvement in managing an eligible business or an eligible investment. Most people will not be able to show they have been managing an eligible investment, but business owners, provided their business is the right size, should be able to meet the criteria of the Investor Category.

What is important is the fact that a business owner can apply for an Investor Visa based on ownership of a business. Then, instead of having to get involved in a business in Australia, the Visa applicant can deposit a sum of money with one of the State/Territory Treasury Corporations for a period of four years, and at the end of that period will be eligible to apply for the permanent Visa. This deposit is known as a Designated Investment.

The age cut-off for the Investor Visa is 55 years; between 45 and 55 years Visa applicants must be sponsored by the State/Territory Government with whom they will be making their Designated Investment. The amount of the Designated Investment is either:

• AUD 750,000 if the Visa applicant is relying upon a State/Territory Sponsorship; or
• AUD 1,500,000 if the Visa applicant is not relying upon a State/Territory Sponsorship.

Obviously, the Visa applicant must satisfy all of the criteria for the Visa, at both the provisional and permanent stages � however, it is not the purpose of this article to explain those requirements. The point is merely to emphasise that business owners can, if they meet the criteria at the initial stage, deposit a sum of money into a secure investment for a four year period, rather than having to take the risk of getting involved in business during their first few years in a new country.

At IMMagine Australia, we will assess whether you meet the requirements to apply for any of the Business Skills Category Visas and in particular, the Investor Visa Category. If you meet any of the criteria, we can help you choose the best pathway to permanent residence taking the least risk.

A Second Housing Bubble In Melbourne?

Is a second housing bubble being created in Australia (but particularly in Melbourne) by artificial manipulation of the housing marketby the Federal Government?

Australian consumer sentiment increased for the second consecutive month in July to reach its highest level in 19 months as households grew more optimistic about an economic recovery. This surge in optimism comes despite the fact that the Australian Treasury says that Australian households have lost a total of 602 million Australian dollars in the five months since the economic crisis took effect. This amounts to a loss of approximately 33,500 Australian dollars in household wealth since December 2007.

Home loans showed an increase for the eighth straight month as record low interest rates and generous government grants to first time homebuyers took effect. Improvements in consumer confidence (an increase of 23.2% in the last two months) and the buoyant property market seem to reinforce the Reserve Bank of Australia's (RBA) view that the Australian economy will recover later this year.

The RBA's official cash rate remained at a record low of 3% having fallen 4.5 % since September oflast year. It will be interesting to see whether the RBA retains the status quo in its next review of the official cash rate but as economic activity increases on the back of increased consumer confidence it is inevitable that interest rates must rise to quell inflationary pressure.

Given my comments in the preceding paragraph you would be forgiven for not wishing to be in too much of a hurry to purchase property in Melbourne. However shortages of rental accommodation are increasing rental prices and as one has to live somewhere, many are deciding to bite the bullet and purchase overpriced housing by locking in low fixed term mortgages. Vacancy rates for rental accommodation in Melbourne are between 1.0% - 3.9%

With the decrease in household wealth mentioned above its difficult not to speculate that Australia is heading for another housing bubble unless real income increases proportionately to compensate for the increase in the cost of housing.

Let's hope that the confidence in consumer sentiment translates to greater economic activity otherwise the government's action in staving off a recession by artificially manipulating market forces in the housing market may come at a cost yet to be felt.

Increase In Immigration Application Lodgement Fees

The Australian Government has announced an increase in application fees and charges from 1 July 2009 as follows:

Applications under the General Skilled:
Migration categories including Employer Nomination scheme will increase from $2,105 to $2,525

Business Skills Applications:
Business Skills Applications will increase from $2,800 to $3,360.

Family Migration Applications:
Family migration applications will increase from $1,420 to $1,705 and in Australia from $2,105 to $2,525.

Contributory Parent Category:
The second visa application charge payable by applicants under the contributory parent category will increase from $32,725 to $34,330

Australia's 2009 - 2010 Skilled Immigration Program

Those applicants with offers of employment and those sponsored by state governments will be fast tracked.

Only skilled migrants that are sponsored by an employer or on the critical shortages list or have a state sponsor will continue to be processed. Those that don't will remain on hold.

English Language Requirements

1. It may determine the score that an applicant will achieve and;
    
2. A certain level of English language ability may be a requisite to be able to apply for a particular type of visa.

Extract From The Age Newspaper: 'economy Set To Defy Gloom' - Peter Martin

July 21, 2009

AUSTRALIA is set to emerge from its downturn a year earlier than forecast and with far fewer people losing their jobs, according to leading forecaster Access Economics.

In a major reassessment, Access now says Australia will defy Treasury forecasts for a contraction in the economy this financial year, and instead record modest growth. "Things are better than either we or the Treasury expected," said Access director Chris Richardson.

"Our economic stimulus programs have worked better, and China's stimulus programs are helping us more."

Australia: A Healthy Recession Outlook

Australia looks set to emerge from the recession in a healthy state. Ian Verrender reports.

In its latest forecasts, Access says it expects unemployment to peak at 7.5 per cent, a full percentage point below Treasury's budget forecast of 8.5 per cent.

But the Access forecast still implies an extra 200,000 Australians joining the unemployment queue over the next two years, almost half of them from Victoria.

"We have avoided the worst the world had to throw at us," said Mr Richardson. "But that doesn't mean things won't get worse. Retail spending is at a record high thanks to government handouts, but their effect will fade and spending will flatline as unemployment climbs.

"Businesses will wind back spending as around $50 billion stripped from coal and iron ore earnings begins to hit profits."

While stopping short of endorsing the Access forecast, Treasurer Wayne Swan welcomed the acknowledgement that the stimulus package was helping.

But he agreed that Australia still faced "strong global headwinds and some major challenges, particularly rising unemployment, as well as very large falls in business investment and the terms of trade, stripping billions from our national income".

"These huge challenges simply steel the Government's resolve to implement our three stages of economic stimulus to keep supporting businesses and jobs," Mr Swan said.

Access has Australia just avoiding a "technical recession" — two consecutive quarters of contraction — with GDP to slip 0.2 per cent in the June quarter, but remain steady in the September quarter and then return to growth. "It means the worst of the growth slowdown is behind us, but the worst of unemployment is still to come," Mr Richardson said.

The Access forecast has the Australian economy growing 0.4 per cent over this financial year, a sharp contrast to Treasury's budget forecast for a contraction of 0.5 per cent. Both Access and the Treasury expect a strong recovery next year of more than 2 per cent.

Access expects an even stronger rebound in Victoria, with 3.3 per cent growth. "Victoria isn't burdened by the size of its finance sector the way NSW is," said Mr Richardson. "And it's already suffered big job losses in manufacturing."

While Victoria's relative reliance on manufacturing will continue to be a drag on growth, the state is benefiting from strong population growth.

"It's going like a train, up almost 2 per cent in the past year alone. That's the fastest population growth rate since Jean Shrimpton scandalised Flemington Racecourse with her miniskirt back in 1965," Mr Richardson said.

"It's underpinning housing construction and it is helping to protect Victorian retailers. And, unlike NSW which was caught flat-footed in the race to justify stimulus funds, Victoria did well in the carve-up of national stimulus funding."

An Essential Media poll conducted at the weekend found 52 per cent of Australians believed the economy had hit bottom and was on the way up.”