220.127.116.11 AoS - lodgement of security
If the assuree has applied for a visa with a mandatory AoS which would require a security, a bank guarantee to cover the relevant amount of the required security must be obtained by the assurer, and must be lodged with the CBA. The CBA will require a term deposit to the value of the required security to issue a bank guarantee for the relevant amount. Evidence of the bank guarantee and term deposit must be provided by the assurer to Centrelink before the AoS can be approved. The assurer's name only must appear on the term deposit. If it is a joint assurance, at least one of the assurer's names must appear on the term deposit. For visas that are discretionary there is no requirement for any security.
The amount of the security is determined by the number of adult visa applicants, and the visa subclass applied for by the visa applicant. Currently for a 2 or 4 year AoS a security for the value of $5,000 for the primary visa applicant and $2,000 for any adult secondary visa applicant must be paid.
In the case of contributory parent visas (subclass 143 and subclass 864), a security for the value of $10,000 for the primary visa applicant and $4,000 for any adult secondary visa applicant must be paid as security. The relevant term deposits for these amounts will be held with the CBA for 10 years.
In the case of body corporates and unincorporated bodies other than state agencies, 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).
The security will be given in the name of the corporation or unincorporated body.
Any interest that is accrued on the term deposit is not considered as part of the security, and is paid to the assurer by the CBA regardless of what happens to the capital amount.
Note: The assurer nominates an arrangement to receive interest from the CBA when he/she obtains the term deposit. It is not always paid at the end of the AoS period. It is usually paid periodically throughout the period, either into the term deposit account or into any other account the assurer nominates.
Example: Catherine wishes to provide an AoS for her parents, Kosta and Aphrodita, who have applied for a visa subclass 103 with an AoS which requires a security.
Catherine must provide evidence of the bank guarantee and term deposit from the CBA as part of the conditions of the visa. The value of the security is:
|Security required for …||Amount|
|Primary visa applicant||$5,000|
|Secondary adult visa applicant||$2,000|
|Total bond provided to CBA||$7,000|
At the beginning of the second year of the AoS Catherine loses her job and is unable to provide support for her parents. Kosta and Aphrodita make an application for SpB and are successful in their claim. After 2 months Catherine finds another job. She notifies Centrelink that she is willing and able to provide support to her parents again. Centrelink stops the SpB payments. The total sum of SpB payments made to Catherine's parents is $3,102.40.
Approximately 12 months from when SpB was paid to Kosta and Aphrodita, Centrelink instructs the CBA to:
- send a cheque for $3,102.40 (the amount of the debt to Centrelink) to its Collector of Public Monies, and
- retain the remainder of the bond ($3,897.60), until the end of the 4 year AoS period.
At the end of the 4 year AoS period, Centrelink instructs the CBA to:
- release the remainder of the bond ($3,897.60), plus any interest accrued, to Catherine.
Act reference: SSAct section 1061ZZGD(3) Accepting or rejecting an assurance of support
Policy reference: SS Guide 9.2 Visa subclasses & payment eligibility for visas issued after 1/9/94