9.4.3.90 AoS - requirements for corporations

Summary

If a corporation wishes to provide an AoS, it must be incorporated in Australia (within the meaning of the Corporation Act 2001) and intend to remain incorporated in Australia while any AoS given by the body remains in force.

Incorporated bodies are not required to meet the income requirements. For visas that carry a mandatory AoS requirement, they are required to provide a security in the form of a bank guarantee. The value of the security will depend on the length of the assurance period. The security will be deposited in the name of the corporation.

When assessing the AoS, the Secretary must be satisfied that the body has not been set up for the sole purpose of providing an AoS. For example, in most circumstances a body should provide reliable and verifiable evidence (e.g. tax returns, correspondence from a registered accountant, statement from ASIC) of consistent trading activity for at least two financial or calendar years prior to the date of AoS application that can be used to verify that the body has the capacity to support the assuree. To have the capacity to support an assuree a body as a guideline, should be trading profitably at a similar level to the income test for individuals, as well as any other additional in-kind resources the corporation can offer.

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

For an AoS given by a body other than a state agency the following security values will apply for the specified assurance periods:

  • if the assurance is for 2 or 4 years - $10,000 (the AoS to cover a maximum of 2 adult assurees), or
  • if the assurance is for 10 years - $20,000 (the AoS to cover a maximum of 2 adult assurees).

An AoS that is given by a body or state agency must be signed on behalf of the body or state agency by a person who is duly authorised in writing to sign the AoS such as a Director of a Company or a committee member of an association.

A body may not give an AoS for an adult if:

  • the body has previously given an assurance for 2 adults (whether in a single assurance or 2 separate assurances) and each assurance remains in force, or
  • the body has previously given an AoS for
    • 1 adult and that assurance remains in force, and
    • 1 adult for whom the Secretary has not yet accepted or rejected the assurance, or
  • the body has given an assurance for 2 adults (whether in a single assurance, or 2 separate assurances) and assessment of the application is pending, acceptance or rejection for either or both of those assurances.

A body may not give an AoS for an Community Support Program adult if:

  • the body has previously given an assurance for 2 Community Support Program adults (whether in a single assurance or 2 separate assurances) and each assurance remains in force, or
  • the body has previously given an AoS for
    • 1 Community Support Program adult and that assurance remains in force, and
    • 1 Community Support Program adult for whom the Secretary has not yet accepted or rejected the assurance, or
  • the body has given an assurance for 2 Community Support Program adults (whether in a single assurance, or 2 separate assurances) and assessment of the application is pending, acceptance or rejection for either or both of those assurances.

The body may not give an AoS if it would result in more than 2 adults being assured for any non-Community Support Program. Separately the body may not give an AoS if it would result in more than 2 adults being assured under the Community Support Program.

Note: There are no restrictions on the number of children for whom a body may give an AoS.

A body must not give an AoS jointly with another body, state agency or person.

If the assuree is paid a recoverable social security payment during the AoS period, the resulting debt will be raised against the corporation.

Example: Smith's Engineering Co. wishes to provide an AoS for Bettina. Bettina has applied for a visa which has a mandatory AoS for a period of 4 years. The company proves it is registered in Australia through providing its ABN and company bank account details to Centrelink. The company provides a bank guarantee for the value of $10,000.

If Bettina is paid a recoverable social security payment during the AoS period, Centrelink will recover the resulting debt from Smith's Engineering Co. as a whole.

State & territory government departments & local councils

If a state or territory department or agency or local council wishes to provide an AoS, they will not be subject to an income test and will also be exempt from providing any security.

Act reference: SSAct Chapter 2C Assurance of support, Part 2C.4 Determinations

Social Security (Assurances of Support) Determination 2018

Last reviewed: 1 July 2019