Cost of Contributory Parent Visa - reasons

[oldun]

Does anyone know why the cost of the CPV is as high as it is. Is it just a one-off payment that was set somewhat randomly, or is it based on assumed medical/welfare needs or anything like that.

cheers

[Petals]

I believe its cost to the community. There is a thread that is sticky in the migration section for contributory parents have a search and you will find it. Others there may be able to assist you on their own journey to Aus.

[Quoll]

Yes, cost to the community. Bringing in old codgers who aren't going to contribute to the economy but who will use more by way of services. It's designed to be unattractive! That said, of course, some old codgers definitely put a lot back into the community but they have to go with the norm.

[Raul Senise]

Does anyone know why the cost of the CPV is as high as it is. Is it just a one-off payment that was set somewhat randomly, or is it based on assumed medical/welfare needs or anything like that.

cheers

 

If you do the math it’s actually very cheap for what you get.

 

A Parent who is granted a CPV will get Permanent residency which gives them instant healthcare for the rest of their life and eventually a Pension if they qualify, even though they have never paid tax in Australia.

 

As most applicant’s are past working age, they may never pay any tax in Australia, yet they will receive the same benefits as someone who has paid tax all of their life.

 

If you consider the cost of health care for say 20 to 30 years you will see it is a bargain for those who can afford the upfront cost.

[oldun]

That makes a lot of sense. I have obviously tried to research it and I felt that these reasons were part of it. I do find that trying to do research on the official sites is like trying to nail jelly to a wall. There are bits and pieces all over the place, and then it is trying to fit it all together. I could not find anywhere where it was put as clearly as your answer. As I say, it makes a lot of sense and also makes it more attractive.

cheers

[Flathead]

If you do the math it’s actually very cheap for what you get.

 

A Parent who is granted a CPV will get Permanent residency which gives them instant healthcare for the rest of their life and eventually a Pension if they qualify, even though they have never paid tax in Australia.

 

As most applicant’s are past working age, they may never pay any tax in Australia, yet they will receive the same benefits as someone who has paid tax all of their life.

 

If you consider the cost of health care for say 20 to 30 years you will see it is a bargain for those who can afford the upfront cost.

They will pay tax....any earnings they have will be subject to Australian tax.....I pay a huge amount on my UK income

[oldun]

They will pay tax....any earnings they have will be subject to Australian tax.....I pay a huge amount on my UK income

 

Would that apply to a UK pension. I would be looking to work ( I would be pushing 60 by the time we got over there), but also draw two pensions, non-disability related.

[Flathead]

You have to pay Australian tax on your worldwide income so that would include UK pension.

 

There will be allowances but it must be declared. You can opt to become a non UK taxpayer once you live here

[Rupert]

They will pay tax....any earnings they have will be subject to Australian tax.....I pay a huge amount on my UK income

 

Well good for you. But many live on pensions that are far less than a salary, so the point is that there will be a much lesser contribution to the tax coffers over the years. Plus on average, we all start to use more health related resources as we get older.

[Flathead]

Well good for you. But many live on pensions that are far less than a salary, so the point is that there will be a much lesser contribution to the tax coffers over the years. Plus on average, we all start to use more health related resources as we get older.

I was simply replying to the suggestion that CPV holders would not pay much tax. That is very unlikely to be true as it would be virtually impossible to live here without a substantial income....and that would be taxable

[oldun]

You have to pay Australian tax on your worldwide income so that would include UK pension.

 

There will be allowances but it must be declared. You can opt to become a non UK taxpayer once you live here

 

Many thanks - I take your point entirely, and brings it into mind to research it.

cheers

[Raul Senise]

I was simply replying to the suggestion that CPV holders would not pay much tax. That is very unlikely to be true as it would be virtually impossible to live here without a substantial income....and that would be taxable

 

I don’t think that you can compare the tax contribution of someone who migrates here at age 60 or later and only possibly begins paying tax in Australia from that point, to the tax contribution of someone who has worked their whole adult life in Australia.

 

Yes, in some instances some Contributory Parent Visa holders may pay some tax in Australia. The point is however, that the benefit they gain will far outweigh the short term tax contribution they may make.

[Flathead]

I don’t think that you can compare the tax contribution of someone who migrates here at age 60 or later and only possibly begins paying tax in Australia from that point, to the tax contribution of someone who has worked their whole adult life in Australia.

 

Yes, in some instances some Contributory Parent Visa holders may pay some tax in Australia. The point is however, that the benefit they gain will far outweigh the short term tax contribution they may make.

 

If someone does not have an income which is big enough to have to pay tax on then how on earth are they going to survive here?

[Peach]

If someone does not have an income which is big enough to have to pay tax on then how on earth are they going to survive here?

 

My mother-in-law is a retired ex-£10 pom, I believe she gets around $700 a fortnight in pension from Centrelink and that is it...

[Flathead]

My mother-in-law is a retired ex-£10 pom, I believe she gets around $700 a fortnight in pension from Centrelink and that is it...

Is that taxed as it is an Australian benefit?

 

Any income from the UK, including pensions is liable for tax

[Peach]

Is that taxed as it is an Australian benefit?

 

Any income from the UK, including pensions is liable for tax

 

She gets nothing from the UK. As her only income, I believe she is way under the threshold to pay tax on it her Aus pension.

[Raul Senise]

If someone does not have an income which is big enough to have to pay tax on then how on earth are they going to survive here?

 

I was simply answering the original question of the OP as to the reason for the high cost of a CPV.

 

There is research to show that the fee paid is minimal compared, on average to what each person will actually cost the tax payer over their lifespan.

 

You seem to have taken this personally based on your personal experience. If you believe that someone who only commences paying tax once they retire to Australia, is actually funding their own Medicare and other social costs, you are entitled to that opinion, but I disagree based on my experience.

 

My personal experience, having been involved with many CPV applications, is that applicants’ will survive on modest savings (usually from the sale of their home) and help from family until they are able to claim an Australian pension.

 

If the Government was actually making money on CPV’s they would not cap the program.

[Petals]

We pensioners are allowed to have tax free income in Aus. Also anyone who takes an allocated pension is taking a tax free benefit. That is why its best to have one than to run with the money.

[ramot]

I have to agree with ABA, as a retiree having retired to OZ, but we are self funded, I know quite a few who have the CPV, and trust me when you get older all sorts of ailments associated with age start to affect you. One of my friends mentioned only recently that their visa contribution owed them nothing, in comparison to the amount they have sadly had to use medicare for. It's a fact of life in old age health can be very expensive

Should we ever be in the situation that we are eligible for the CPV, we honestly would understand the cost involved but not saying we would like it!!!

[Flathead]

I have to agree with ABA, as a retiree having retired to OZ, but we are self funded, I know quite a few who have the CPV, and trust me when you get older all sorts of ailments associated with age start to affect you. One of my friends mentioned only recently that their visa contribution owed them nothing, in comparison to the amount they have sadly had to use medicare for. It's a fact of life in old age health can be very expensive

Should we ever be in the situation that we are eligible for the CPV, we honestly would understand the cost involved but not saying we would like it!!!

I am not arguing that the cost of the visa is not related to healthcare costs.....I have been here for several years on a CPV myself.

 

I was making the point that many (most) CPV holders will have an income which puts them into the Tax paying bracket. I have to pay as much tax as a person working full time and so do many others.

[Magz]

just like to add we have come on CPV approx. $85,000 plus Bond of $14000 we cannot claim any benefits should we be out of work, until 10 years are up otherwise it would be taken from our Bond, also cannot claim an Australian Pension until you have lived here for 10 years which is means tested. We are both working and paying taxes, and unless you go to a doctor that bulk bills you have to pay $30+ plus pay for medication that you need. So we are not all old codgers taking out of the system. So not sure why the CPV is so high for the privilege of working here and paying taxes.