Assurance of Support (AoS): Income Requirement

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Assurance of Support (AoS): Income Requirement

In our last article we explained Assurance of Support (AoS), which is a mandatory or discretionary requirement on certain family visas asking for legal commitment from a party for the financial support of the visa applicant (assuree) for a stipulated period (AoS period) after moving to Australia.  Whilst AoS is a DOHA requirement, the application is made to Centrelink and it is Centrelink that determines whether an AoS application is accepted or not.

Find: Centrelink – Assurance of Support

Read: Family Visas – Assurance of Support (AoS)

The Basics

  • Each AoS can cover a maximum of two migrating adults and any dependent children.
  • The AoS requires an assurer, who does not need to be the sponsor.
  • An assurer agrees to repay the Australian government for any welfare payments that is made to the visa holder during the required AoS period.
  • There may be a need to provide a financial bond.
  • The assurer must meet AoS income requirements.
  • When one assurer cannot meet the income requirements, a joint AoS may be made between more than one assurer – where the sum of the involved assurers’ income satisfies the income requirement. In a joint AoS situation, each assurer must complete a separate application.
  • There is a maximum of 3 joint assurers.

Types of AoS

Some visas have a mandatory AoS requirements. Some others may be affected on the discretion of the Department of Home Affairs based on a case by case bases. To learn more about the AoS periods and

Mandatory AoS visas include:

  • Parent visa (subclass 103)
  • Aged Parent visa (subclass 804)
  • Contributory Parent visa (subclass 143)
  • Contributory Aged Parent visa (subclass 864)
  • Aged Dependent Relative visa (subclass 114 and 838)
  • Remaining Relative visa (subclass 115 and 835)

Discretionary AoS visas include:

  • Child visa (subclass 101 and 802)
  • Adoption visa (subclass 102)
  • Orphan Relative visa (subclass 117 and 837)
  • Former Resident visa (subclass 151)

Income threshold 

Assurers must be able to meet he income threshold. If an assurer is unable to meet the required income threshold, they may engage in a joint AoS for the visa entrant(s). Do note that an increase in the number of assurers (and their dependent children) will result in an increase in the income threshold.

The income threshold that needs to be met in each AoS varies and is affected by:

  • Number of people in the assurer’s immediate family
  • Number of adult assurees in the AoS
  • Number of assurers in the AoS

A single assurer with no dependent children with a single assuree with no children would give rise to the lowest income threshold. As the number of family members increase, the income threshold that must be met increases accordingly.

 Income threshold when no dependent children

Let’s start with the basic income threshold, that is for single assurer with no dependent children and a single assuree with no dependent children.


Income threshold =

Annual NSA rate x (number of assurers^ + number of adult assurees)


The NSA rate is based on the rate for “single with dependent children” as of 1 July of the financial year within which you are applying. It isn’t a mistake, for the purposes of the AoS, the above is used, whether or not there are actually dependent children.

Lets look at some examples using the rates at 1 July 2017:

Annual NSA rate = $15,061.80

Income threshold = $15,061.80 x (1+1) = $30,123.60

An assurer with no dependent children seeking to meet the income requirement for a one assuree is $30,123.60.

^If the assurer has a partner that is not acting as joint assurer, the partner is not considered in calculations, and vice versa.


Examples:

Situation (no children)Income threshold calculation
1 assurer for 2 adult assurees$15,061.80 x 3 = $45,185.40
2 assurer for 1 adult assuree$15,061.80 x 3 = $45,185.40
3 assurers for 2 adult assurees               $15,061.80 x 5 = $75,309.00

 

Important:  Please always check for updates on policies and changes to any of the above rates.

Income threshold when with dependent children

Dependent children of assurees are not calculated in the income threshold. If the assurer has dependent children, the income threshold is calculated as below.


Income threshold =

[Annual NSA rate x (number of assurers + number of adult assurees)]

+

[(base FTB Part A rate + FTB Part A supplement) x number of assurer’s dependent children]


Lets look at some examples using the rates at 1 July 2017:

Annual NSA rate = $15,061.80

Base FTB Part A rate + FTB Part A supplement = $2,266.65


Examples:

Situation (assurer(s) have children)Income threshold calculation
1 assurer for 1 adult assuree

Assurer has partner who is not a joint assurer
and has 1 dependent child               

($15,061.80x 2) + ($2,266.65 x 1)
= $32,390.25
2 assurers for 1 adult assuree

Assurer has a partner who is a joint assurer
and has 2 dependent children               

($15,061.80x 3) + ($2,266.65 x 2)
= $49,718.70
1 assurer for 2 adult assurees

Assurer has partner who is not a joint assurer
and has 2 dependent children.
Assurees have 2 dependent children as well               

($15,061.80x 3) + ($2,266.65 x 2)
= $49,718.70
2 assurers for 2 adult assurees 

Assurer has a partner who is a joint assurer
and
has 2 dependent children.               
Assurees have 2 dependent children as well               

($15,061.80 x 4) + ($2,266.65 x 2)
= $64,780.50

 

Important: Please always check for updates on policies and changes to any of the above rates.

Evidence of income (individual)

The assurer will need to provide evidence of assessable income meeting the income requirement for their situation for the current financial year, first financial year and second financial year. Depending on the year, the material that may be provided to prove meeting the income requirement in that year may slightly differ and has been detailed below.

Note that if the assurer’s assessable income for a financial year exceeds the income requirement, there is only need for evidence to be shown for assessable income meeting the income requirement and not further.

Assessable income

The total of:

  1. The individual’s taxable income for the financial year
  2. The individual’s target foreign income for the income year
  3. The total amount of any tax free pension or benefit paid or payable to the individual for the financial year
  4. The individual’s adjusted fringe benefits total for the financial year
  5. Any tax free salary paid for services that occurred during the financial year while the individual was on overseas deployment as a member of the Australian Defence Force or Australian Federal Police

Read: Definitions of ‘target foreign income’, ‘tax free pension or benefits’ and ‘adjusted fringe benefits’

 Current financial year

The financial year in which the assurance of support is given by the person. Evidence for this year is for assessable income for the part of the financial year up to the date the assurance is give:

  • A document showing the individual’s gross income and period of service or employment, such as a payslip, group certificate, letter from the person’s employer, or contract for service or employment
  • A financial statement or other business record showing the individual’s gross and net business income for a specified period;
  • Documents showing payments of the kind mentioned in 2 to 5 under the definition of assessable income (above) that have been paid to the individual in the current financial year.

First financial year

The financial year ending immediately before the current financial year. The evidence for this year is:

  • A Notice of Assessment for the respective year
  • If the Notice of Assesment does not disclose sufficient income to meet the income requirement, then documents showing payments of the kind mentioned in 2 to 5 under the definition of assessable income (above) that have been paid to the individual in the respective financial year.

Second financial year

The financial year ending immediately before the first financial year. The evidence requires is the same as the first financial year’s evidence.

Are you confused by the income requirements and if you meet them? Or do you need help with putting together your application for an AoS for loved ones? The sooner the AoS is accepted, the sooner your loved ones will be with you in Australia! We’re have a lot of experience in getting our client’s loved ones to Australia. Call +61 2 8054 2537, 0434 890 199 or book online today to speak to our migration specialists.