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Thread: Income Requirement for Tier 1 Parent Category

  1. #1
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    Default Income Requirement for Tier 1 Parent Category

    It's my understanding in order to sponsor one parent for residence visa, the sponsor has to have min income of 65,000 NZD.
    Questions are after I read the INZ guidlines:

    1. Can the sponsor has joint sponsor that's not his/her partner/spouse? For example, friends, children or other family member?

    2. Can owner a house be considered an asset to help with meeting the income requirement?

    3. The sponsor also has KIWI savers, on the IRD earnings doesn't fully disclose the 100% income as some goes into that savers account. What's the best way to provide the evidence here?

    4. What's the typical way to demonstrate the evidence that the sponsor meets the income requirement?

    5. Is the 65k NZD before or after tax?

    Thanks so much!
    Last edited by nzbie; 30th December 2014 at 07:46 AM.

  2. #2
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    S4.30.1 here http://www.immigration.govt.nz/opsmanual/46408.htm will answer parts of this for you.

    3 and 4. Apart from IRD records, pay slips or other records of receipts as appropriate, and bank statements showing the regular income.

    5. Before.

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    Quote Originally Posted by JandM View Post
    S4.30.1 here http://www.immigration.govt.nz/opsmanual/46408.htm will answer parts of this for you.

    3 and 4. Apart from IRD records, pay slips or other records of receipts as appropriate, and bank statements showing the regular income.

    5. Before.
    Hello I read that link and could not find answers to my 1 & 2 questions, does that mean sponsor cannot be anyone else besides partner/spouse?

    Also, the sponsor's house cannot be counted towards income requirement then?

    For the IRD records, do they look at previous year or the 2-3 years prior? Can I get the records online?
    Last edited by nzbie; 30th December 2014 at 05:42 PM.

  4. #4
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    Quoting directly from that link. (My bolding)
    F4.30.1 Sponsor’s income

    To meet the gross minimum income requirements:
    a sponsor or their partner must earn a minimum of $65,000 per annum; or
    a sponsor and their partner together must earn a minimum of $90,000 per annum.
    The gross minimum income requirement referred to in (a) above must be met by personal income that is obtained from one or any combination of:
    sustained paid employment; or
    regular self-employment; or
    regular investment income.

    The minimum income requirement must be met by personal income. Income earned by another legal entity, such as a business or a trust, cannot be included unless it has been paid directly to the sponsor and/or their partner in the form of wages or drawings.
    So the sponsor and/or partner have to provide the income. (If you think about it, this HAS to be the case, because anybody else would not be the child of the incoming parent, and this is the parent category.) If either one of those owns a house which provides them a demonstrable income (i.e. officialdom is aware of this income and tax is paid) through being let out, this could be counted under the heading of 'regular investment income'.

    It looks as though http://www.ird.govt.nz/income-tax-in.../end-year/pts/ you need to be registered with IRD to see your records online - you'd need to check with them. I expect INZ would need to see several years' evidence of income in order to agree that it's a reliable amount coming in, but I haven't found any mention of how long - maybe somebody who has sponsored in a parent on Tier 1 may know. (There are not many of these, because this two-tier category was only brought in as from May 2012.)

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    Quote Originally Posted by JandM View Post
    Quoting directly from that link. (My bolding)

    So the sponsor and/or partner have to provide the income. (If you think about it, this HAS to be the case, because anybody else would not be the child of the incoming parent, and this is the parent category.) If either one of those owns a house which provides them a demonstrable income (i.e. officialdom is aware of this income and tax is paid) through being let out, this could be counted under the heading of 'regular investment income'.

    It looks as though http://www.ird.govt.nz/income-tax-in.../end-year/pts/ you need to be registered with IRD to see your records online - you'd need to check with them. I expect INZ would need to see several years' evidence of income in order to agree that it's a reliable amount coming in, but I haven't found any mention of how long - maybe somebody who has sponsored in a parent on Tier 1 may know. (There are not many of these, because this two-tier category was only brought in as from May 2012.)

    Thank you, but what does this mean?
    If either one of those owns a house which provides them a demonstrable income (i.e. officialdom is aware of this income and tax is paid) through being let out, this could be counted under the heading of 'regular investment income'. Do you mean let out as in rent out or you mean something else?

    I wish someone could set some lights on the how long of IRD records that INZ needs. Does it say on residence visa evidence? I am going to look at that.

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    Yes, to let a house = to rent a house.

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    Quote Originally Posted by JandM View Post
    Yes, to let a house = to rent a house.
    Would money in my savings can be used to meet the income requirement?

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    If you can show there is a regular investment income (as mentioned in that regulation). This would mean having to show proof that your money generates $x every year.

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    If I were to rent a house out in 2015, that will get me up to 65k requirement. When should I start sending the EOI? Or wait for a year to show the income? I imagine if the house is in process of being rented out, the INZ should know that the income is coming in and therefore no need to wait for a year to show?

    Also, what evidence I need to show for the rental income, bank statements? or something else that's easier to show? I dont' like showing people my bank account.

  10. #10
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    If you can show an income stream. Salary + additional income and evidence it will continue for the year.

    If you can show $4500/m salary + ~$1100/m paid for rent that would be enough.* Showing a signed contract with tenants and income slips, plus perhaps your employment contract they should see that you have a projected income above $65k. In the case of your work, you can also show how solid that income is from previous years. If you've worked there for 8 years, they are less likely to have issues with that compared to a fresh 3 month old job. Unless you have a contract to show them for 24 months+

    Normally a house is a burden on a massive scale so you might have to be able to show closer to 6000-6200 a month. (72-75k/y) Having tenants makes you a landlord, which comes with extra responsibilities and as such costs.

    While the sponsored can perhaps help you once there (buying groceries, cleaning around the house or w/e) I don't think they can be counted as an income source. That's why the income burden is on the sponsor, you're just lucky if you're sponsoring someone that is a small/mitigated burden. (I am speaking practically/financially, I am not trying to be mean about the person you want to sponsor)

    Either way, good luck! And you know, happy new year! =D


    PS: All this is assuming the tenant won't be the person you're sponsoring. I have to show an investment of 11 million, this can't include my house, cars, lands or anything else not for commercial purposes. Pretty sure the same counts for this, your sponsor can't be generating the income.

    * Or any other combination of the 2, as long as it leads up to $5600/m combined, ideally $6200/m combined
    Last edited by Joris_Hopeful; 2nd January 2015 at 12:11 AM. Reason: Additional information & Clarity

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