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Amendments to Adjust Certain Fees and Charges in Schedule 1 to the Migration Regulations 1994

27 October 2008 legislation change

Client summary

From 27 October 2008, the Migration Regulations 1994 (the Regulations) are amended to effect the adjustment of certain fees and charges.  The adjustment process is done in accordance with government policy and the Migration (Visa Application) Charge Act 1997.

Affected legislation

Schedule 1 to the Regulations is amended.

Additional information:

Sub-subparagraph 1218(2)(a)(ii)(B) of Schedule 1 to the Regulations is amended to increase the visa application charge for applicants for a Tourist (Class TR) visa that are in Australia at the time of application from $215 to $240. This increase was intended to have been implemented on 1 July 2008 with the annual indexation of fees as part of changes to ensure that Visitor visas are better aligned with the administrative costs associated with processing applications for these visas.

Schedule 1 to the Regulations is amended further to increase the second instalment of the visa application charge (the second VAC) for the visa subclasses within the Contributory Parent visa category. The second VAC has been increased by 3.7 per cent according to the published 2008-09 Contributory Parent Visa Composite Index (CPVCI).

The CPVCI is designed to increase the second VAC at the same relative pace as the total estimated average cost to the Commonwealth arising from entrants under Contributory Parent (Migration) (Class CA), Contributory Aged Parent (Residence)(Class DG), Contributory Parent (Temporary)(Class UT) and Contributory Aged Parent (Temporary)(Class UU).

The CPVCI is determined by the Australian Government Actuary (AGA) using a methodology where a weighted average of the growth in various indices corresponding to major cost drivers (health, aged care and income support expenditure) is used. The AGA has recently provided the Department of Immigration and Citizenship with a revised costing model. Based on this revised model the 2008-09 CPVCI is 3.7 per cent.

All increases are rounded to a multiple of $5.00 according to the following methodology:

  • if the amount of the charge calculated under this formula is not a multiple of $5.00, and if the amount exceeds the nearest lower multiple of $5.00 by $2.50 or more, the amount is rounded up to the nearest $5.00; or
  • in any other case, where the charge calculated under the formula is not a multiple of $5.00, the amount is rounded down to the nearest lower multiple of $5.00.

The amount of the increase to the above fees and charges does not exceed the applicable charge limit set out in the Migration (Visa Application) Charge Act 1997.

Transitional provisions: The amendments apply in relation to an application for a visa made on or after 27 October 2008.

Forms: Form 990i will be amended to reflect these changes as at 27 October 2008.

Instructions: Nil