9.4.3.90 AoS - Requirements for Corporations

Requirements for corporations

If a corporation wishes to provide an AoS, it must be incorporated in Australia and intend to remain incorporated in Australia while the AoS given by the body remains in force. The registered address of the body must be in Australia.

Incorporated bodies are not required to meet the income requirements. They are now required to provide a security in the form of a bank guarantee or other acceptable form of guarantee from a financial institution. The value of the security will depend on the length of the assurance period. The security will be deposited in the name of the corporation.

For an AoS given by an incorporated body other than a state agency the following security values will apply for the specified periods:

• if the assurance is for 2 years - $10,000 (the AoS to cover a maximum of 2 adult assurees), or
• if the assurance is for 10 years - $20,000 (the AoS to cover a maximum of 2 adult assurees).

An AoS that is given by an incorporated body or state agency must be signed on behalf of the body or state agency by a person who is duly authorised in writing to sign the AoS.

The body may not give an AoS for an adult if:

• the body has previously given an assurance for 2 adults (whether in a single assurance or 2 separate assurances) and each assurance remains in force, or
• the body has previously given an AoS for:
  • one adult and that assurance remains in force, and
  • one adult for whom the Secretary has not yet accepted or rejected the assurance, or

• the body has given an assurance for 2 adults (whether in a single assurance, or 2 separate assurances) and assessment of the application is pending, accepted or rejected for either or both of those assurances.

The incorporated body may not give an AoS if it would result in more than 2 adults being assured.

Note: There are no restrictions on the number of children for whom a body may give an AoS.

A body must not give an AoS jointly with another body, state agency or person.

If the assuree is paid a recoverable social security payment during the AoS period, the resulting debt will be raised against the corporation.

Example: Smith's Engineering Co. wishes to provide an AoS for Bettina. Bettina has applied for a visa which has an AoS for a period of 2 years. The company proves it is registered in Australia through providing its ABN and company bank account details to Centrelink. The company provides a bank guarantee for the value of $10,000.

If Bettina is paid a recoverable social security payment during the AoS period, Centrelink will recover the resulting debt from Smith's Engineering Co. as a whole.

State & territory government departments & local councils

If a state or territory department or agency or local council wishes to provide an AoS, they will not be subject to an income test and will also be exempt from providing any security.

Act reference: SSAct Part 2C.4 Determinations

Social Security (Assurances of Support) (FaHCSIA) Determination 2007

_______________________________________________________

Last reviewed: 1 July 2011