- More than 90,000 Hong Kong people live in Australia
- 25% of students in Australia is comprised of Chinese students
- 3.7% of the Australian population speaks Mandarin or Cantonese
Australia and Hong Kong have always shared strong ties with each other. The people-to-people links between the two places include tourism, education, sporting and cultural exchanges.
Hong Kong has one of the biggest Australian communities abroad. There are around 100,000 Australians living in Hong Kong and more than 600 Australian businesses operating in this small city.
On the other hand, Australia is also one of the most preferred places for immigration among Hong Kong people. There are around 96,000 Hongkongers that live in Australia. When it comes to the education sector, Australia is the third most popular country for overseas students after the US and the UK. According to research, Chinese students take up 38% of all students that exchange to Australia and make up 25% of the total number of students in Australia. In 2016, it is found that 3.7% of the entire Australian population speaks Mandarin or Cantonese.
Australia has made AUD 37billion (equivalent to USD26.54 billion) from the education sector. As you can see, this sector plays a fundamental role in the country’s economy by being the second largest services export after tourism. However, amidst the pandemic, Australia has taken a huge toll on its economy due to the declining enrolments from Chinese students.
Becoming a permanent resident in Australia
In recent decades, it has been harder to be eligible for Australian permanent residency as the number of immigrants is rising rapidly. To get permanent residency in Australia requires either family-based, work-based, business or investment permanent residency. If you want to move to Australia by investing in properties or establishing businesses, you need to manage a business or hold an investment in Australia that is worth AUD 750,000 for four years. It’s not that hard as the median price of a house in Sydney is already AUD 600,000.
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New Visa Arrangement for Hongkongers
- Attracting the best and brightest talent
As Alan Tudge, the Australian Acting Minister for Immigration, has mentioned that Australia has a long history of attracting Hong Kong’s best and brightest talent who have contributed significantly to their economic growth and job creation. Australia is committed to further strengthen this area of development.
Therefore, last year, the Australian government introduced new immigration initiatives for Hong Kong people, giving students, temporary graduates and skilled workers, an easier way to become permanent residents in Australia. If you belong to one of the categories mentioned above, you will be eligible for a five-year extension to your visa. People who are granted their visas under this new arrangement will be eligible for permanent residency after the visas expire. Within the five years of right to abode, you can buy houses for your own living and for investment. However, if you are not eligible for permanent residency, it is still possible for you to buy a house for investment as a foreigner, but it is more likely for you to pay the full price of a property since it is difficult for foreigners to get a loan in Australia.
Living in Australia is way different from that in Hong Kong as the Australian government provides good welfare, the society runs at a relatively slower pace. Most people in Hong Kong would choose to go shopping after work at night, but in Australia, most shopping malls close at 5 or 6 pm.
Besides, in Australia, you don’t have Identification Cards like those in Hong Kong. You will have to bring along your passport or driver’s license to prove your identity. And most importantly, the Hong Kong government does not charge much taxes as you only need to pay 2-17% of your net chargeable income. However, the Australian government takes 19-45% of your income. Although you may have to pay almost half of your salary, they will provide you with a better welfare system. Therefore, you do not have to worry when you get older.
PS: Special thanks to Terry for research and drafting
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Please note all the above stated is opinion only and does not constitute proper investment advice. Denzity is not liable for any investment decisions that result from following the opinions outlined above.