Assurance of Support
- Assurance of Support: A History
- Changes to Assurance of Support (AoS) from 1 April 2018
- Mandatory Assurances of Support
- Discretionary Assurances of Support
- The Assurance of Support Period
- Requirements for Qualification as an Assurer
- Social Security Payments covered by the AoS
- Further Information
An Assurance of Support (AoS) is given for migrants who enter Australia under certain visa types, specified by the Department of Home Affairs (Home Affairs). Some visa applicants are required to obtain an AoS before their visa application can be approved. An AoS is a legally binding and unconditional commitment by an Australian resident (the assurer) to repay certain Australian social security payments that have been paid to migrants (the assurees) during their respective AoS period. An AoS period can be 12 months, two years or ten years, depending on the type of visa sub-class. (Pending the passage of legislation, there will be changes to the Assurance of Support Period. For further information, visit the Upcoming Changes page).
The AoS scheme allows migrants with a higher likelihood of needing income support payments, such as parents of Australian residents, entry into Australia, while protecting Australian Government social security outlays. It is also a commitment by an assurer, who meets certain requirements, to assume financial responsibility for supporting the assuree/s during their AoS period.
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In Australia, a concept similar to the current AoS scheme dates from the early 1900s. In 1912, a system was introduced whereby guarantees were given by sponsors that provision would be made for the maintenance of sponsored migrants to avoid their becoming a charge on the state.
In the 1920s maintenance guarantees were introduced. These guarantees provided for the recovery of any public monies and, as they were in Australia on a temporary basis, the payment of the migrant's return passage should they return to their country of origin. The guarantee period was for five years from date of arrival in Australia.
In 1955, the recoverable costs under a maintenance guarantee became more specific and included medical (surgical or dental) costs; age, invalid or widow's pensions; unemployment, sickness or rehabilitation benefits; or any other allowances paid by the Commonwealth, State, public or charitable institutions. The guarantee period was reduced to three years.
Under the Migration Act 1958, recoverable costs under the maintenance guarantee included accommodation, surgical, dental and special benefits. This remained in force until migration reforms in 1989.
In 1982, the maintenance guarantee was renamed 'Assurance of Support' (AoS). In 1985 assurances were made effective for ten years or until Australian citizenship was obtained by the migrant.
From 1989, all parents who applied under the immigration family reunion program were required to be covered by an AoS. The AoS period was reduced to five years regardless of whether the migrant became an Australian citizen.
In August 1991, a new AoS scheme was introduced. It saw the introduction of a monetary bond and the Migration Health Services Charge and a broadening of recoverable payments. The AoS period was reduced to two years.
In July 2003, Contributory Parent Visa was introduced, allowing a further 4,000 parents to migrate to Australia, in addition to the existing 500 parent visa places. This visa requires assurers to provide a guarantee to meet the assurees' welfare costs during a 10-year AoS period.
In 2004 – 2005, 3,500 Contributory Parent visas and 1,000 Parent visas were granted.
Before 30 June 2004 the AoS scheme was operated by Home Affairs under the Migration Regulations 1994 and the Department of Social Services (DSS), through Centrelink.
Home Affairs decided when a migrant required an AoS, and whether a monetary bond needed to be lodged. Home Affairs also assessed the financial situation of the potential assurer through minimum income test requirements, and approved the AoS. Home Affairs held details of the assurer.
Centrelink was responsible for assessing the assuree's claim for social security payments, should such a claim have been made during the AoS period. It was also responsible for raising a debt against the assurer to recover the amount of any social security payments paid to the assuree during the AoS period.
Under these arrangements, the AoS scheme split responsibilities between Home Affairs and DSS. There were also a number of administrative difficulties arising out of the scheme. The Home Affairs and Centrelink systems were not fully compatible, resulting in difficulties in identifying assurers and assurees. Furthermore, due to the lack of comprehensive information on the AoS scheme, many assurers claimed that they did not fully understand their obligations when signing AoS documents, and did not feel obligated to repay their debts to the Australian Government.
There were also issues surrounding the quality of the data transferred from Home Affairs to Centrelink regarding assurer and assuree details.
In order to address these concerns, a budget measure was announced in the May 2003 Federal Budget that involved a transfer of Home Affairs’ responsibility for the AoS scheme to DSS, through Centrelink. On 5 December 2003, the Family and Community Services and Veterans' Affairs Legislation Amendment (2003 Budget and Other Measures) Bill 2003 received Royal Assent. Schedule 3 of the Bill brought into effect a new social security AoS scheme that strengthens and simplifies AoS administration. The new scheme came into effect on 1 uly 2004.
From 1 July 2004, Home Affairs continues to decide whether a potential migrant requires an AoS; however, the assessment of potential assurers is now conducted by Centrelink. Centrelink approves the AoS and notifies Home Affairs that approval has been given. Centrelink also assumes responsibility for the lodgement of a monetary bond, if one is required by Home Affairs. Centrelink continues to administer the AoS debt recovery and waiver processes, while the rights of review of a decision pertaining to the assurer remain under the Social Security Act 1991.
The transfer of AoS responsibilities results in a simpler AoS scheme. There are considerable benefits to both assurers and assurees:
- both assurers and asssurees are able to utilise Centrelink's extensive interpreter service and Multicultural Services network - which can be accessed from any Centrelink Call Centre or Centrelink Customer Service Centre - to acquire comprehensive information about the AoS scheme in their preferred language;
- assurers only have to contact one government agency – Centrelink; and
- as the transfer of data from Home Affairs to Centrelink about assurers has ceased, all data about assurers will be held by Centrelink, thus protecting the accuracy of this data. This is expected to ensure that debt recovery is more accurately targetted.
There are two types of AoSs, mandatory and discretionary. These are described further below.
Improvements to the operation of the AoS scheme were introduced with effect from 1 January 2008, under the Families, Community Services and Indigenous Affairs Legislation Amendment (Further 2007 Budget Measures) Act 2007.
Some key changes to the AoS scheme effective from 1 January 2008 were:
- removal of mandatory and discretionary AoS from all skilled visa subclasses and carer visa subclasses 116 and 836;
- for mandatory AoS cases where security is required, a bank guarantee from the Commonwealth Bank of Australia (CBA) is to be obtained and evidence of this bank guarantee is to be provided to Centrelink before the AoS can be approved;
- a simpler formula for income thresholds and changes to assessable income to include fringe benefits, foreign income, tax free pensions or benefits etc.;
- organisations are exempt from the income test; and
- security for the two-year AoS increased to $5,000 for primary visa applicant and $2,000 for secondary applicant. (Pending the passage of legislation, there will be changes to the Assurance of Support Period. For further information, visit the Upcoming Changes page).
The Social Security (Assurances of Support) (FaHCSIA) Determination 2007 gave effect to these changes from 1 January 2008.
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An amended Determination was registered on the Federal Register of Legislation on 23 May 2018 that returns the Assurance of Support requirements, including the income threshold for assurers, to the settings that were in place prior to 1 April 2018. The changes will apply from 1 April 2018, so as not to disadvantage a person or organisation who has applied for an Assurance of Support since this date.
To be eligible to be an AoS assurer, an individual must be an Australian resident, aged over 18, and meet the following income requirements:
- The income threshold for the assurer is based on the maximum basic rate of Newstart Allowance (NSA, single with dependent children rate) as at 1 July in each financial year ($15,061.80 per annum as at 1 July 2017) for each adult involved in the AoS, and the base rate of Family Tax Benefit (FTB) Part A and FTB Part A supplement ($2,266.65 per annum as at 1 July 2017) for each dependent child of the assurer.
- The income requirement for the assurer depends on the number of assurers, assurees and assurer’s dependent children involved in an AoS arrangement.
- The income requirement applies to the current and previous financial year, or if not available the current year and financial year before the last.
In some cases, an Assurance of Support will include a requirement to provide a financial security via a bond. For example, visas under the parent migration program.
For an individual assurer, the bond amounts are:
- for contributory parent visas (10-year AoS): $10,000 for the primary visa applicant and $4,000 for any adult secondary visa applicant
- for other visas such as non-contributory parent visas (2-year AoS): $5,000 for the primary visa applicant and $2,000 for any adult secondary visa applicant.
For corporations and unincorporated bodies providing an AoS, the bond amounts are:
- for contributory parent visas (10-year AoS): $20,000 (to cover a maximum of 2 adult assurees)
- for other visas such as non-contributory parent visas (2-year AoS): $10,000 (to cover a maximum of 2 adult assurees).
A discretionary Assurance of Support does not require a bond.
Depending on the visa type granted, a migrant may require an AoS of either one year, two years or 10 years:
- A one-year discretionary AoS applies to humanitarian entrants under the Community Support Program.
- A two-year mandatory AoS applies to Non-Contributory Parent Visa holders.
- A 10-year mandatory AoS applies to Contributory Parent Visa holders.
Note: the current two year AoS period may be increased to four years, pending the passage of NARWP legislation. Further information on the NARWP is provided under Encouraging Self-Sufficiency for Newly Arrived Migrants - Extension (2018-19 Budget).
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If the visa carries a mandatory AoS provision, an acceptable AoS must be provided, including the lodgement of a monetary bond. This bond is a source of available funds for AoS debt recovery purposes if recoverable social security payments are made to the assuree during the AoS period. The bond is lodged and held by the Commonwealth Bank of Australia for the entire AoS period. It is released to the assurer at the end of the AoS period, with the deduction of any amount needed to repay recoverable social security payments to Centrelink.
The amount of the bond is determined by the visa class for which the migrant is applying. A bond of $5,000 for the primary applicant and $2,000 for any additional adults on the same application is required for most visas. For visas under the contributory parent category, the bond is $10,000 for the primary applicant and $4,000 for any additional adult applicants.
Assurance of Support for the Community Support Program
The Community Support Program (CSP) was announced as part of the 2017-18 Budget and commenced on 1 July 2017. The CSP allows humanitarian entrants (i.e. applicants for a subclass 202 Global Special Humanitarian visa) to be sponsored by individuals, community organisations and business groups through Approved Proposing Organisations. Sponsors are responsible for providing adequate support to CSP entrants for the first 12 months in Australia.
CSP entrants are subject to a discretionary AoS with an assurance period of 12 months. The AoS does not prevent a CSP entrant from accessing income support payments and family assistance payments on arrival as humanitarian entrants are exempt from all waiting periods for social security payments. The AoS provides the mechanism to require the assurer to repay any recoverable social security payments made to the CSP entrant during the assurance period.
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If the visa applied for carries a discretionary AoS provision, Home Affairs will assess whether an applicant is at risk of becoming a charge on Australia's welfare system. A monetary bond is not required for a discretionary AoS.
For both mandatory and discretionary AoSs, the AoS period is deemed to start from the date the assuree arrives in Australia, or the date the relevant visa is granted, whichever occurs later. The AoS period is two years in the case of most visas and one year for the Community Support Program. The Contributory Parent AoS period is ten years in duration, once again reflecting the need to protect Australia's social security outlays against the increased costs which elderly parent migrants may bring. (Pending the passage of legislation, there will be changes to the Assurance of Support Period. For further information, visit the Upcoming Changes page).
There are a number of qualification requirements that a potential assurer must meet in order to provide an AoS to a migrant. They include that they must:
- be over the age of 18 years
- be either Australian citizens or Australian permanent residents living in Australia, including New Zealand citizens who are protected Special Category Visa (SCV) holders, and
- also meet income test requirements to prove that they are financially capable of supporting the assurees and also repaying any social security debts which the assurees may claim during the AoS period.
If individuals cannot meet the income test, the possibility of becoming a joint assurer is open to them. The combined income must satisfy the modified income test which takes account of both assurers' family circumstances.
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Social Security Payments covered by the AoS
If the assuree receives one or more of the following payments from Centrelink during the AoS period, Centrelink has the legal right and responsibility to recover the amount paid from the assurer through its normal debt recovery procedures:
- Newstart Allowance
- Youth Allowance
- Austudy Payment
- Widow Allowance
- Mature Age Allowance
- Partner Allowance
- Sickness Allowance
- Parenting Payment
- Special Benefit
If the assuree lodges a claim for any of these payments, Centrelink will contact the assurer in order to establish that they are neither willing nor able to support the assuree before the payment is granted. Centrelink must also be satisfied that it is unreasonable for the assuree to accept support from the assurer before payment is granted.
If Centrelink is satisfied that the assurer is not willing or able to support the assuree, or that it is unreasonable for the assuree to accept this help, payment may be granted. However, the amount of payment that the assuree receives will be raised as a debt against the assurer. This places the onus of providing financial support onto the assurer while ensuring the assuree has financial assistance should this be necessary.
At the end of the AoS period, Centrelink advises the assurer about any debt that they may have. If there is a monetary bond, Centrelink will recover the debt from this. If no bond exists, or the bond is less than the debt amount, Centrelink will recover the balance owed using its normal debt recovery processes.
At all stages during the AoS process, the applicant has the right of appeal to a Centrelink Authorised Review Officer and the Administrative Appeals Tribunal (AAT).
More information about the AoS scheme is available on the DHS website.