Guest Wiggy Jiggy

Problems with Assurance of Support

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    Guest Wiggy Jiggy

    Hi there,

     

    We moved out to Adelaide four years ago. My parents applied for a Contributory Parental Visa and we have been asked to provide an Assurance of Support. Unfortunately when we went for the interview we were told that we didn't meet the income threshold requirement (due to me going back to Uni).

     

    We have tried asking around our friends to see if someone could become Assurer for us - we'd obviously pay the bond and would get a legal agreement in place to make sure than any financial obligations were not passed onto the Assurer. But unfortunately as yet we haven't been able to find someone. We're starting to get desperate now as I don't want my parents left on their own in the UK. Does anyone know of any ways around the Assurance of Support (my parents are financially able to support themselves) or any organisations that may be willing to provide the Assurance?

     

    Thanks,

     

    Linda

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    Hi there,

     

    We moved out to Adelaide four years ago. My parents applied for a Contributory Parental Visa and we have been asked to provide an Assurance of Support. Unfortunately when we went for the interview we were told that we didn't meet the income threshold requirement (due to me going back to Uni).

     

    We have tried asking around our friends to see if someone could become Assurer for us - we'd obviously pay the bond and would get a legal agreement in place to make sure than any financial obligations were not passed onto the Assurer. But unfortunately as yet we haven't been able to find someone. We're starting to get desperate now as I don't want my parents left on their own in the UK. Does anyone know of any ways around the Assurance of Support (my parents are financially able to support themselves) or any organisations that may be willing to provide the Assurance?

     

    Thanks,

     

    Linda

     

    Hi Linda

     

    Yes, there are ways round the problem. However, athough they are do-able, they can work out to cost the visa applicants substantially more IF Centrelink do their own end of things correctly. Sometimes they do, sometimes they don't.

     

    https://www.mara.gov.au/agent/ARDetails.aspx?ud=5751&BackToSearch=True&FolderID=394

     

    I would suggest that you ask Dave Brooking in Adelaide. His contact details are in the link above. He is an extremely nice man. He and his wife have CPVs (so does my mother.) Dave and Jane Brooking also had a problem with the AoS. In the end, it was provided by a company.

     

    I think you can set up a new company for the purpose but I think Centrelink are then supposed to require $20,000 AUD instead of $14,000 AUD. I'm not sure of the exact details but Dave would be because he and his wife had the same hassle about 3 years ago.

     

    Cheers

     

    Gill

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    Guest Wiggy Jiggy

    Hi Gill, Thankyou so much for the advice - we were starting to despair so it's great to have some options again! I'll contact Dave as you suggest and will post again when (hopefully!) we have a resolution. Thanks, Linda

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    Hi Linda

     

    Yes, there are ways round the problem. However, athough they are do-able, they can work out to cost the visa applicants substantially more IF Centrelink do their own end of things correctly. Sometimes they do, sometimes they don't.

     

    https://www.mara.gov.au/agent/ARDetails.aspx?ud=5751&BackToSearch=True&FolderID=394

     

    I would suggest that you ask Dave Brooking in Adelaide. His contact details are in the link above. He is an extremely nice man. He and his wife have CPVs (so does my mother.) Dave and Jane Brooking also had a problem with the AoS. In the end, it was provided by a company.

     

    I think you can set up a new company for the purpose but I think Centrelink are then supposed to require $20,000 AUD instead of $14,000 AUD. I'm not sure of the exact details but Dave would be because he and his wife had the same hassle about 3 years ago.

     

    Cheers

     

    Gill

     

    Can i just say that your an absolute legend.:notworthy::notworthy:

     

    HG

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    Guest Wiggy Jiggy

    IT WORKED!!!! Just wanted to give you an update on our situation. We followed your advice Gollywobbler, contacted our accountant and created a company - the only rules for the AOS seem to be that it cannot be a sole trader so we put the company in both my husband and my names. We then applied for an ABN which was easy to set up online for free. This was accepted by Centrelink as being valid for providing the AOS and we had to pay a $20,000 bond (rather than $14,000 for an individual). My parents have just received notification that subject to the final visa payment their visa will be granted and they are hoping to be out living here by October!!! Thankyou so much Gollywobbler - we would never have thought of this option ourselves. If anyone finds themselves in the same situation please feel free to contact me and I'd be happy to share the precise details.

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    Having been in the same situation, it seemed the sensible thing to do to put the A$14000 into our son's bank account, he then sorted the bond which is with Commonwealth Bank and the interest on the money about 6.5% is paid into our Australian bank account. The only downside is that he has to pay tax on the interest, but we ensure that he is not out of pocket.

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    Having been in the same situation, it seemed the sensible thing to do to put the A$14000 into our son's bank account, he then sorted the bond which is with Commonwealth Bank and the interest on the money about 6.5% is paid into our Australian bank account. The only downside is that he has to pay tax on the interest, but we ensure that he is not out of pocket.

     

    Hi Hayshake

     

    I agree with you. When we got a CPV for my mother, we sent all the money to my sister in Oz and the Bond Account is in her name. The Bond is only $10,000 for Mum because she is a widow. The interest is paid to my sister twice a year but she says that the interest rate is lousy - I suspect that the interest rate might be better if one invests $10,001 but if so, we didn't think of that possibility at the time!

     

    Cheers

     

    Gill

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    IT WORKED!!!! Just wanted to give you an update on our situation. We followed your advice Gollywobbler, contacted our accountant and created a company - the only rules for the AOS seem to be that it cannot be a sole trader so we put the company in both my husband and my names. We then applied for an ABN which was easy to set up online for free. This was accepted by Centrelink as being valid for providing the AOS and we had to pay a $20,000 bond (rather than $14,000 for an individual). My parents have just received notification that subject to the final visa payment their visa will be granted and they are hoping to be out living here by October!!! Thankyou so much Gollywobbler - we would never have thought of this option ourselves. If anyone finds themselves in the same situation please feel free to contact me and I'd be happy to share the precise details.

     

    Hi Linda

     

    VERY WELL DONE, that family! :jiggy:

     

    My mother has a Contributory Parent Visa and my sister's accountant (in Perth) told my sister Elaine that it is possible to get the Bond money back within the 10 years.

     

    Apparently the Parent claims poverty after s/he has lived in Oz for 2 years, so Centrelink pay Special Benefit to the Parent in financial distress. According to the accountant, the Parent claims Special Benefit until Centrelink have paid out the full amount of the Bond in Special Benefit payments. The Parent stops claiming SB as soon as Centrelink have paid out $10,000, $14,000 or $20,000 - however much money has been deposited as the Bond for the AoS.

     

    The capital in the Bond Account stays in that account until the 10 years is up, so the holder of the Bond Account continues to receive the interest twice a year.

     

    At the end of the 10-year AoS period, Centrelink claim all of the capital in the Bond account for themselves because Special Benefit is a recoverable Benefit under the terms of the AoS.

     

    I can understand how the idea works but we have not had the nerve to try it. It is pure funk on our own part - I'm sure the accountant gave accurate advice but we decided that we are wimps so we haven't pursued the idea. I think that if you are minded to do it, you should get some more advice from your accountant and make absolutely sure that there is no possible downside with the idea. :err:

     

    Cheers

     

    Gill

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    Guest Wiggy Jiggy
    Hi Linda

     

    VERY WELL DONE, that family! :jiggy:

     

    My mother has a Contributory Parent Visa and my sister's accountant (in Perth) told my sister Elaine that it is possible to get the Bond money back within the 10 years.

     

    Apparently the Parent claims poverty after s/he has lived in Oz for 2 years, so Centrelink pay Special Benefit to the Parent in financial distress. According to the accountant, the Parent claims Special Benefit until Centrelink have paid out the full amount of the Bond in Special Benefit payments. The Parent stops claiming SB as soon as Centrelink have paid out $10,000, $14,000 or $20,000 - however much money has been deposited as the Bond for the AoS.

     

    The capital in the Bond Account stays in that account until the 10 years is up, so the holder of the Bond Account continues to receive the interest twice a year.

     

    At the end of the 10-year AoS period, Centrelink claim all of the capital in the Bond account for themselves because Special Benefit is a recoverable Benefit under the terms of the AoS.

     

    I can understand how the idea works but we have not had the nerve to try it. It is pure funk on our own part - I'm sure the accountant gave accurate advice but we decided that we are wimps so we haven't pursued the idea. I think that if you are minded to do it, you should get some more advice from your accountant and make absolutely sure that there is no possible downside with the idea. :err:

     

    Cheers

     

    Gill

     

    Definitely sounds as it may work although I think we'll stick with the 10 year period for the bond. When we went to sign up for the AOS we were told we would only get 2% interest but when we went to the Commonwealth Bank we received 6.5% a rate that we were pleased with. :cute:

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    Guest ellabaolinh

    Hi Wiggy Jiggy and everyone,

    We are having the same situation now and just want to double check does the company need demonstrate income eligibility? Does income limits apply to company as well?

    Many thanks

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    Guest Wiggy Jiggy
    Hi Wiggy Jiggy and everyone,

    We are having the same situation now and just want to double check does the company need demonstrate income eligibility? Does income limits apply to company as well?

    Many thanks

     

    Hi to you all too,

     

    No there weren't any income requirements at all for a company acting as AOS. In our particular situation we set up an umbrella company in my husband's name with a discretionary trust which also had my name as company officer to get around the issue of not being a sole trader. This particular option recommended to us by the accountant as it fitted in with my husband's investment dealings. However a different form of company may be more applicable for you. It cost about $500 to set up the company. As I mentioned in a previous posting the only downside was that the bond was higher than for an individual. My parents just moved out here a couple of weeks ago - it is lovely to have them here now. Good luck with trying to set up the company and with applying for the AOS. Linda

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    Guest ellabaolinh

    Hi Linda,

    Congratulation on the reunion with your parents. And thank you very much for your quick reply. I will consult with my account about this.

    Thank you again.

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    Guest franceszhou4321

    Hi Linda, I have very similar situation like you. I am now trying to apply the ABN on line by ABR (Australian Business Regrister) but they requied a ASIC number for the company. I was wondering what type of company apply. I am now applying a private company, don't know if that's why ABR asking a ASIC number. I want to get it done in a quick and easy way just for the Assurance support to my parents. Can you help me out to send me the link and tell me what type of company you applied would be accepted by centerlink? I really appreciate if I can get some reply from you.

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    Guest MagnoliaHana

    Hi Gill, I am in a similar position as Linda. I am wondering if I could set up a company (non trading/ inactive) for the sole purpose of becoming AoS for my parents?

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    Hi Gill, I am in a similar position as Linda. I am wondering if I could set up a company (non trading/ inactive) for the sole purpose of becoming AoS for my parents?

     

    There have been recent refusals for people using this strategy because the company was not trading. Under the regulations it does not have to be but some Centrelink officers make up their own rules.

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    Guest jazz22

    HI

    I am just looking for AOS for my parents and brother who want to come to Australia on contributory visa.. I am unable to do from my side due to threshold income required and i am currently without job,

    Is there anyway i can get AOS form anyone or way to do it .

     

    Please help me out.

     

    Thanks in advance

    jazz

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    HI

    I am just looking for AOS for my parents and brother who want to come to Australia on contributory visa.. I am unable to do from my side due to threshold income required and i am currently without job,

    Is there anyway i can get AOS form anyone or way to do it .

     

    Please help me out.

     

    Thanks in advance

    jazz

     

    The rules about this have recently changed. There are organisations that arrange assurances, for a price. I shall not recommend any of them in particular. Try Google.

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    Guest AliinAus

    Just a reminder also that the information in the earlier thread is now 2 years old

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    Guest jazz22
    HI

    I am just looking for AOS for my parents and brother who want to come to Australia on contributory visa.. I am unable to do from my side due to threshold income required and i am currently without job,

    Is there anyway i can get AOS form anyone or way to do it .

     

    Please help me out.

     

    Thanks in advance

    jazz

     

     

     

    Hi Guys,

     

    I tried looking for organizations to get AOS on internet for my family but unable to find anything. Can if anyone knows please tell me names of organizations who provide AOS. My email is : sandhutech_22@yahoo.com

     

    Thanks in advance

    jazz

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    There have been recent refusals for people using this strategy because the company was not trading. Under the regulations it does not have to be but some Centrelink officers make up their own rules.

     

    Hi Westly

     

    Especially a dreadful female employed at the PVC at present. She works for DIAC, not Centrelink. However, she imagines that Policy is Law, so you can guess the rest!

     

    Cheers

     

    Gill

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    Guest MineMee

    I'm just curious though - what happens if I get an organization to do this or get a third party to do this and pay them the bond fee ourselves....what if after ten years they decide to do a runner with the money?

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    http://guidesacts.fahcsia.gov.au/guides_acts/ssg/ssguide-9/ssguide-9.4/ssguide-9.4.3/ssguide-9.4.3.90.html

     

    Guidelines re companies acting as the Assurer.

     

    In particular, note:

     

    If the incorporated body is set up immediately prior to the AoS application and/or the incorporated body has not been trading or is not trading, the AoS will not usually be accepted.

    Best regards.

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