How Does the Taxable Income Work for Subclass 870 (Parent) Visa Sponsorship Applicants?
Reg 2.60W - When an applicant passes the income test
Applicant’s taxable income only
An applicant for approval as a family sponsor in relation to the parent sponsor class passes the income test if the applicant’s taxable income, for the income year or each of the income years specified in an instrument under subregulation (4), is at least equal to the amount specified in such an instrument.
Applicant’s taxable income combined with other taxable incomes
2. An applicant for approval as a family sponsor in relation to the parent sponsor class passes the income test if:
b. the sum of:
i. the taxable income of the applicant; and
ii. any taxable income of either or both of the persons specified in subregulation (3);
for the income year or each of the income years specified in an instrument under subregulation (4), is at least equal to the amount specified in such an instrument; and
b. the taxable income of the applicant, for that year or each of those years, is at least equal to half of that amount.
3. The following persons are specified for the purposes of subparagraph (2)(a)(ii):
a. the spouse or de facto partner of the applicant;
b. one child of a permitted sponsored person in relation to the applicant if:
i. that permitted sponsored person is specified in the application; and
ii. that child is an Australian citizen, an Australian permanent resident or an eligible New Zealand citizen.
Specified amounts and years
4. The Minister may, by legislative instrument, specify:
a. an amount or amounts for the purposes of subregulations (1) and (2); and
b. an income year or income years for the purposes of subregulations (1) and (2).
Definitions
5. In this regulation:
income year has the meaning given by the Income Tax Assessment Act 1997.
taxable income has the meaning given by the Income Tax Assessment Act 1997.
LIN 19/146 provides as follows:
5. Amount of taxable income of the applicant
For the purposes of subregulations 2.60W(1) and 2.60W(2) of the Regulations, the amount specified is $83,454.80.
6. Income year
For the purposes of subregulations 2.60W(1) and 2.60W(2) of the Regulations, the income year specified is the most recent completed taxable income year prior to the date of lodgement of an application for approval as a family sponsor.
What does Reg 2.60W mean for Subclass 870 Sponsorship Applicants?
From the table above, it can be seen that sponsorship applicants for the Parent visa Subclass 870 visa must show an “overall” taxable income that is above a certain amount (i.e. $83,454.80). The word “overall” means that the income can be a combination of the sponsorship applicant’s individual income with the income of up to two other persons specified in the legislation.
What Does This Mean for the Sponsorship Applicants of Subclass 870 Visa?
So what are the two other persons? Do they have to be an Australian citizen or permanent resident? Is there a certain threshold the sponsor needs to meet?
Interestingly, the other two persons can be the sponsorship applicant’s spouse or de facto partner, and the other child of the visa applicant (i.e. a sibling of the sponsorship applicant)
Those two other persons do not have to be an Australian citizen or permanent resident.
Yes, there is a certain threshold for the sponsor – i.e. if not combined, taxable income needs to be no less than $83,454.80. If combined with two other persons mentioned above, the sponsorship applicant’s individual income needs to be at least half of $83,454.80.
How Can Agape Henry Crux Help
Subclass 870 Parent visa is relatively very new and not all the migration agents and lawyers out there have an expertise to handle such cases. If you are in Australia and want to sponsor your parents but do not want to wait for “god-knows-how-many-years”, you can contact our immigration lawyers and migration agents at info@ahclawyers.com or call us on +61 2 7200 2700.
We speak fluent English, Korean, Mandarin, Cantonese, Indonesian, Burmese and Malay. If these aren’t your language, we can also help you arrange an interpreter.