9.4.6.20 Transfer of an AoS

Summary

The AoS period starts on the day the person is granted the visa, or on the day they enter Australia, whichever occurs later.

The AoS would continue until the end of the AoS period specified in the AoS or until it is cancelled before the end of the AoS period where cancellations must meet the criteria under Social Security (Assurances of Support) Determination 2018 section 25.

Under the provisions of SSAct section 1061ZZGF(2), the Secretary may determine, that an AoS that has come into force in respect of an assuree, may cease if another AoS comes into force in respect of the same assuree. This may occur in situations where the Secretary considers that there is a special circumstance in the particular instance, and it would be a beneficial outcome for all parties for a new AoS to be obtained to replace the existing AoS, thereby effectively transferring the responsibilities of one assurer to another assurer.

The Secretary may make a determination to cancel an existing AoS if before the end of the AoS period a request is made to transfer the AoS to another person due to special circumstances of the assurer, e.g. long term injury or illness (individual), liquidation of a company (Body), and it would be beneficial to do so in order to protect government outlays and ensure ongoing support for the assuree.

Example: ABC Trading Ltd signed a 10 year AoS dated 10/11/2009 on behalf of Mr and Mrs Smith to enable them to migrate to Australia from the UK. Due to a down turn in their business activities, ABC Trading Ltd is considering liquidation. The Managing Director of the company has approached Centrelink to explain the situation and has offered to personally sign a new AoS, as an individual, on behalf of Mr and Mrs Smith. He has requested Centrelink to assess his eligibility to be an individual assurer. Centrelink may consider this request as transferring the AoS would provide a beneficial outcome for all parties.

A new assurer must satisfy the requirements specified in the Social Security (Assurances of Support) Determination 2018. Should another AoS come into force in respect of an assuree, the AoS that was in force is to be cancelled and the new AoS will replace the previous AoS and be in force for the remaining period of the relevant AoS. The new AoS will commence from the same date as the original AoS.

If the new AoS is a mandatory AoS which requires a security, the bank guarantee to cover the relevant amount of the required security must be obtained by the new assurer from the CBA as the CBA will require a term deposit to the value of the required security to issue a bank guarantee for the relevant amount in favour of Centrelink. Evidence of the new bank guarantee and term deposit must be provided by the new assurer to Centrelink before instructions are given to CBA to release the previous bank guarantee. The new assurer's name 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.

Centrelink may authorise the CBA to release the full term deposit amount to the person or organisation who obtained the previous term deposit and the bank guarantee if the assuree has not received a recoverable social security payment during the AoS period.

Joint AoS

In the case of a joint AoS, if an application to transfer is made by one of the assurers, the Secretary may determine that the existing AoS will cease to be in force if another AoS comes into force provided Centrelink is satisfied that there are special circumstances for allowing the transfer. If Centrelink is satisfied that the special circumstances warrants a transfer, Centrelink will assess both assurers (prospective assurer and existing assurer) in order to determine that both satisfy the requirements specified in Social Security (Assurances of Support) Determination 2018 Part 3 or Part 4, and Part 5 for a joint AoS. If both do not meet the requirements under Social Security (Assurances of Support) Determination 2018 Part 3, Centrelink will decline the request to transfer.

The Secretary may decline a request for a transfer made by an assurer if there is a debt owing to the Commonwealth under the relevant AoS or if the assuree under the AoS is in receipt of an income support payment.

Any interest that is accrued on the previous term deposit is not considered as part of the security, and is payable to the previous assurer by the CBA regardless of what happens to the capital amount.

Act reference: SSAct section 1061ZZGF When an accepted assurance is in force

Policy reference: SS Guide 9.4.6.10 Cancellation of an AoS

Last reviewed: 1 June 2018