Australia Destination Attracts the Super Rich in 2024

Australia is the world’s top destination for ultra-wealthy individuals, because it has no inheritance tax and favors wealthy foreigners, according to a global investment migration consultancy.

The United Arab Emirates lost its top spot to Australia this year.

This means Australia becomes the leading country in the migration decision of the world’s millionaires starting in 2019. In 2023, the number of rich people migrating is expected to be 5,200, during a time of human resource crisis.

Tony Le Nevez, managing partner of Henley & Partners in Australia, said the absence of inheritance tax was a key factor, along with visa programs aimed at attracting the wealthy.

“What makes Australia constantly mentioned as a destination for millionaires?”

1. Abolish inheritance tax and visa incentive program

“Is it the climate and lifestyle, education and health care that are world-leading, far ahead of global crisis hotspots? Or is it the fact that, unlike the UK and the US, Australia has no inheritance or death tax?”

“The answer is all of the above factors, plus attractive visa programs to attract high-end experts.”

Australia abolished inheritance tax in July 1979, just a year after Queensland National Party premier Joh Bjelke-Petersen led the fight to eliminate inheritance tax.

Other states have emulated Queensland and Liberal prime minister Malcolm Fraser has scrapped the federal inheritance tax.

In the United States, the Internal Revenue Service collects inheritance tax when a deceased person’s assets are transferred.

In the UK, there is a 40% inheritance tax on assets exceeding £325,000 (A$616,000).

Australia also has special visa incentive programs aimed at attracting successful people, defined by Henley & Partners, as those with assets worth US$1 million or A$1.478 million.

However, to be considered for the 188 business visa category, a minimum investment of 2.5 million AUD is required. 

To be eligible, they must provide funding for a project designated by a state or territory government from July 2021 onwards.

Henley & Partners forecast of millionaire migration

Henley & Partners predicts there will be 5,200 millionaires migrating to Australia by 2023, surpassing the United Arab Emirates (UAE) with 4,500 people, Singapore with 3,200 people and the United States with 2,100 people.

Typical countries selected as migration destinations for the rich in 2023 are ranked as follows:

• Australia: 5,200 migrants
• UAE: 4,500 migrants
• Singapore: 3,200 migrants
• United States: 2,100 migrants

Australia topped the list from 2015 to 2019 before the Covid pandemic halted much global migration.

The UAE has become a focal point for the wealthy in 2022.

Mr Le Nevez said a Labor government led by Prime Minister Anthony Albanese was likely to continue to prioritize professional migrants, including wealthy individuals investing in businesses.

“In May 2022, Australia had a change of government and almost immediately, the new government announced an enhanced migration and residence program and a review of the immigration system,” he said.

“Like many other developed countries, Australia faces a shortage of professional human resources and an aging population.

“The review recommended major changes to how the visa program is managed. But it’s important to redefine old ideas to see that migration of highly skilled people can help raise Australian living standards by contributing to higher levels of productivity in the economy.”

Migration to Australia set a record of 387,000 in 2022, and Treasury expects the annual net figure to reach 400,000 by the end of June.

3. Statements by Home Affairs Minister Clare O’Neill

To prevent exploitation, Home Secretary Clare O’Neill announced in April that: “The minimum income requirement for skilled migrants will increase to $70,000, from the current $53,900, from 1 July.” 

Ms O’Neill said while she retained the 188 visas reserved for wealthy immigrants. She is not particularly concerned about them, as she has announced policy changes following a review of the immigration system.

“The business investment visa is part of this larger group, including visas for key investors that have been designed to bring capital and entrepreneurs to our country,” she said at the national press club in April.

“We’re not saying we’re going to eliminate those programs.”

“But what we have said is we need radical reform that creates future jobs for Australians and effective governance.” 

The unemployment rate in May fell to 3.6%, lower than 3.7% in April, close to the lowest level of 3.5%.

Thus, the above article explains the reason why the migration of millionaires to Australia is so high! 

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