Migration (Payment of visa application charges and fees in foreign currencies) Instrument (LIN 23/004) 2023, dated 19 June 2023 specifies the Australian dollar and exchange rate of 1.00000 for a number of fees and charges payable in relation to visa applications.
The purpose of the instrument is to specify, that payment of a fee in relation to visa applications in Australia or a foreign country be made in the Australian dollar and exchange rate of 1.00000 to
- remove foreign currency volatility risk
- ensure consistency with Department of Foreign Affairs and Trade (DFAT) processes to minimise cash handling risk
- ensure consistency with citizenship fees that utilise the AC&FCER and now accept only the Australian dollar (from July 2022)
A number of fees and visa application charges are payable in relation to visa applications under the Regulations. Under subregulation 5.36(1A) of the Regulations, the amount of certain fees payable in a foreign currency is worked out on the basis of:
- if the currency for the payment is specified in a legislative instrument for paragraph 5.36(1A)(a)—the exchange rate specified in the instrument; or
- for any other currency—the method outlined in subregulation 5.36(2), which provides a formula using an exchange rate obtained on a commercial basis (paragraph 5.36(1A)(b)).
The Department bi-annually reviews Acceptable Currencies and Foreign Currency Exchange Rates (AC&FCER) and accordingly updates foreign currency instruments made for paragraphs 5.36(1)(a), (b) and (1A)(a) of the Regulations. During the current bi-annual review, it was identified that due to Department progressive shift from paper applications and cash transactions to electronic applications and payments through the IMMI account platform, the number of foreign currency transactions and the use of foreign currency exchange rates have considerably reduced. Foreign currency data indicated that in the 2019-20 financial year, there were 8,081 foreign currency transactions made in 32 currencies, for a total of AUD$32.054 million. Comparatively, in the 2022-23 financial year (to 31 January 2023) there were five foreign currency transactions in one currency for a total of AUD$728.
As only five foreign currency transactions have been made in the 2022-23 financial year, these were very few transactions to support the continued specification of additional foreign currencies and foreign currency exchange rates.
The instrument is registered on the Federal Register of Legislation on 20 June 2023 and will commence on 1 July 2023.
To access the instrument, click here.
