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If the assuree has applied for a visa with a mandatory AoS which would require a security, a bank guarantee to cover the relevant amount of the required security must be obtained by the assurer from the CBA. The CBA will require a term deposit to the value of the required security to issue a bank guarantee for the relevant amount. Evidence of the bank guarantee and term deposit must be provided by the assurer to Centrelink before the AoS can be approved. The assurer's name must appear on the term deposit. If it is a joint assurance, at least one of the assurer's names must appear on the term deposit.
The purpose of the security is to ensure that the Australian Government can recover any debt incurred by the assurer under the terms of the AoS. Centrelink will recover the amount of the AoS debt from the term deposit in the first instance. Centrelink will then request CBA to release the remainder (if any) of the term deposit to the assurer and cancel the bank guarantee. Where the term deposit does not fully cover the amount of the AoS debt any balance outstanding must be repaid by the assurer.
If the assuree does not receive a recoverable payment during the AoS period, Centrelink authorises the CBA to release the full term deposit amount to the person or organisation who obtained the term deposit and the bank guarantee.
The amount of the security is determined by the number of adult visa applicants, and the visa subclass applied for by the visa applicant. For a 2 year AoS a security for the value of $5,000 for the principal applicant and $2,000 for any adult secondary visa applicant must be paid.
In the case of contributory parent visas (subclass 143 and subclass 864), a security for the value of $10,000 for the principal applicant and $4,000 for any adult secondary visa applicant must be paid as security. The relevant term deposits for these amounts will be held with the CBA for 10 years.
In the case of corporations and unincorporated bodies other than state agencies, the following security values will apply for the specified periods:
The security will be given in the name of the corporation or unincorporated body.
Any interest that is accrued on the term deposit is not considered as part of the security, and is paid to the assurer by the CBA regardless of what happens to the capital amount.
Note: The assurer nominates an arrangement to receive interest from the CBA when he/she obtains the term deposit. It is not always paid at the end of the AoS period. It is usually paid periodically throughout the period, either into the term deposit account or into any other account the assurer nominates.
Example: Catherine wishes to provide an AoS for her parents, Kosta and Aphrodita, who have applied for a visa with an AoS which requires a security.
Catherine must provide evidence of the bank guarantee and term deposit from the CBA as part of the conditions of the visa. The value of the security is:
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Security required for: |
Amount |
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Principal visa applicant |
$5,000 |
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Secondary adult visa applicant |
$2,000 |
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Total bond provided to CBA |
$7,000 |
At the beginning of the second year of the AoS Catherine loses her job and is unable to provide support for her parents. Kosta and Aphrodita make an application for SpB and are successful in their claim. After 2 months Catherine finds another job. She notifies Centrelink that she is willing and able to provide support to her parents again. Centrelink stops the SpB payments. The total sum of SpB payments made to Catherine's parents is $3,102.40.
At the end of the 2 year AoS period, Centrelink instructs the CBA to:
Act reference: SSAct section 1061ZZGD(3) Accepting or rejecting an assurance of support, Part 2C.4 Determinations
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Last reviewed: 5 September 2011
