Set up a bank guarantee
You must not arrange a bank guarantee and term deposit until requested to do so in writing from us.
Finalising an application
To finalise an application, we’ll write to you and ask you to:
- arrange a bank guarantee, and
- open a term deposit.
Our letter will let you know all of the following:
- how long the bank guarantee is for
- how much money you must deposit for the bank guarantee
- names of the people the Assurance of Support covers
- when you must complete the bank guarantee
- the deadline date to submit documents.
Before we accept the Assurance of Support, you must show us the:
- bank guarantee
- your account confirmation documents issued by the Commonwealth Bank before the Assurance of Support can be accepted.
Opening a term deposit
You can open a term deposit at a branch of the Commonwealth Bank of Australia. This type of term deposit is used as security for immigration visa purposes. We use the term deposit as security for the bank guarantee.
Once you’ve opened the term deposit, the Commonwealth Bank of Australia will issue you with both:
- a copy of the bank guarantee
- your account confirmation statement.
If your Centrelink online account is linked to myGov, sign in now to upload these documents.
This will need to include a copy of our letter asking you to complete the bank guarantee. If you’re unable to upload documents you can go into your local service centre.
When we get the documents, we’ll let you know the result of your application.
As an individual
The bank guarantee and term deposit must be in the name of the person applying. If multiple people are applying, you can list all the people applying on the bank guarantee and term deposit account.
You can’t include anyone other than the people applying to provide support. This means you can’t include a partner or sibling, unless they’re applying to provide support.
As an organisation
If an organisation is applying, the bank guarantee and term deposit must be in the name of the organisation. It must not be in the name of the person applying on behalf of the organisation.
Amount of guarantee
How much the guarantee is for depends on if:
- the assurer is an individual or an organisation
- there are 1 or 2 adult assurees
- the Assurance of Support is for 2 years, 4 years or 10 years.
From an individual
For an Assurance of Support that is 2 and 4 years the guarantee is:
- $5,000 for 1 adult
- $7,000 for 2 adults.
For an Assurance of Support that is 10 years the guarantee is:
- $10,000 for 1 adult
- $14,000 for 2 adults.
From an organisation
If the assurer is an organisation, it must guarantee:
- $10,000 for 1 or 2 adults for 2 or 4 years
- $20,000 for 1 or 2 adults for 10 years.
Bank guarantee release
You can ask us to release your bank guarantee when the Assurance of Support period ends.
At the end of the Assurance of Support period, if the assurees covered by your Assurance of Support have not received recoverable income support payments during the period:
- we’ll tell the bank that the bank guarantee is no longer required
- we’ll release funds to the account holder.
If assurees have received recoverable income support during the Assurance of Support period, both of the following will apply:
- we’ll recover the relevant amount from the balance of the term deposit
- deductions will occur each year while the assuree is receiving a recoverable income support payment.
If the entire term deposit amount is recovered by us, and it doesn’t cover the total debt, we’ll use our debt recovery powers under Social Security Act 1991 to recover the balance of the debt from you. This may include taking court action.
When we can release your bank guarantee
We can’t release it until the end of the Assurance of Support period.
If a sole assurer or assuree dies, or an organisational assurer is deregistered, we may cancel the agreement.
If there are 2 or 3 joint assurers, and one dies the Assurance of Support period will continue until the end date is reached.
At the end of the period, we’ll send you and the Commonwealth Bank of Australia a letter in the post to confirm the period has ended.
As long as the assuree didn’t get any payments from us, the letter will say:
- the bank guarantee has been cancelled
- the bank can release the funds to the assurer.
How to ask us to release your bank guarantee
- Fill in the Assurance of Support Bank Guarantee Release form.
- Submit it to us online, by post or at a service centre - the details are on the form.