F4.30 Additional requirements for tier one of the Parent Category (to 07/10/2019)

Note: The instructions in this section cease to be effective from 07 October 2019

In addition to the requirements of the Parent Category in sections F4.1 to F4.25, applicants under tier one of the Parent Category must meet one of the following requirements:

1. Sponsor’s income (see F4.30.1); or
2. Guaranteed lifetime minimum income (see F4.30.5); or
3. Settlement funds (see F4.30.10).

F4.30.1 Sponsor’s income

1. To meet the minimum income requirements:
   1. a sponsor or their partner must earn a minimum of $65,000 per annum before income tax; or
   2. a sponsor and their partner together must earn a minimum of $90,000 per annum before income tax.
2. The minimum income requirement referred to in (a) above must be met by personal taxable income that is obtained from one or any combination of:
   1. sustained paid employment; or
   2. regular self-employment; or
   3. regular investment income.
3. The minimum income requirement must be met by personal taxable income. Income earned by another legal entity, such as a company or a trust, cannot be included unless it has been paid directly to the sponsor and/or their partner in the form of shareholder-employee salary or dividends, or is income derived from the trust.
4. When assessing whether the income obtained from the source(s) in (b) above is sustained and/or regular, officers may consider, but are not limited to, such factors as the length of employment, terms of employment and the regularity of payments.
5. The income of a sponsor’s partner may only be considered if the partner has been:
   1. living with the sponsor for a period of at least 12 months in a partnership that is genuine and stable (see F2.10.1), and they meet the requirements for the recognition of a partnership set out at F2.15; and
   2. a New Zealand residence class visa holders for at least three years immediately preceding the date the application their partner wishes to sponsor is made, or is a New Zealand citizen.
6. Sponsors must meet the evidential requirements set out at F4.40.25.1.

F4.30.5 Guaranteed lifetime minimum income

1. If there is one applicant included in the application, the applicant must have a guaranteed lifetime minimum income of at least NZ$28,166 per annum.
2. If a partner is also included in the application, the applicants jointly must have a guaranteed lifetime minimum income of at least NZ$41,494 per annum.
3. The applicants must meet the evidential requirements set out at F4.40.30.1.

F4.30.10 Settlement funds

1. Principal applicants must:
   1. nominate funds (or assets that can be converted into funds) to bring to New Zealand of a minimum value of NZ$500,000; and
   2. demonstrate ownership of the nominated funds and/or assets (see the evidential requirements set out at F4.40.30.5); and
   3. demonstrate that the nominated funds and/or assets have been earned or acquired legally (see F4.5.25 and F4.40.30.5).
2. Funds or assets may be owned either:
   1. solely by the principal applicant; or
   2. jointly by the principal applicant and their partner who is included in the resident visa application.
3. The principal applicant may claim the full value of jointly owned funds or assets (as per F4.30.10(b)(ii) above) for assessment purposes, provided an immigration officer is satisfied the principal and secondary applicants meet the partnership requirements set out at R2.1.15.
4. If funds or assets are held jointly by the principal applicant and a person other than their partner, the principal applicant may only claim the value of that portion of the funds or assets for which they provide evidence of ownership.
5. The principal applicant may only nominate funds or assets that they earned or acquired legally, including funds and/or assets which have been gifted to them unconditionally and in accordance with local law (also see F4.5.25). Where nominated funds or assets have been gifted to the principal applicant an immigration officer must be satisfied that the funds or assets being gifted were earned lawfully by the person(s) gifting the funds or assets.
6. The nominated funds and/or assets must be unencumbered.
7. The nominated funds and/or assets must not be borrowed.
8. The principal applicant and/or their partner who is included in the application must transfer, or have transferred, a total of NZ$500,000 in settlement funds to New Zealand from outside New Zealand.

Note: The value of the amount transferred will be dependent on the currency exchange rate at the time of transfer, not at the time the residence application is assessed (see also F4.30.10.15). Funds that have not been transferred to New Zealand by the principal applicant and/or their partner who is included in the application may not be used to meet requirements for F4.30.10.

F4.30.10.1 Aim and intent of settlement funds transfer

The instructions regarding the nominated settlements funds and the method of transfer of those funds to New Zealand are designed to ensure:

1. the legitimacy and lawful ownership of the nominated funds; and
2. the direct transfer of the settlement funds through a structured and prescribed process to guarantee ongoing legitimacy and lawful ownership of the funds brought to New Zealand.

F4.30.10.5 Approval in principle pending the transfer of settlement funds

If the applicants meet the criteria set out for settlement funds at F4.30.10 and all other requirements under the Parent Category (excluding instructions for transferring funds to New Zealand at F4.30.10.15), the applicants will be advised that:

1. their application has been approved in principle; and
2. resident visas may be granted once they:
   1. provide acceptable evidence of having transferred the nominated funds in accordance with the relevant instructions; and
   2. pay any outstanding fee for English language tuition to meet English language requirements (see F4.15).

F4.30.10.10 Timeframe for transferring funds to New Zealand

1. Principal applicants must meet the requirements for transferring nominated funds within 12 months of the date of the letter advising of approval in principle.
2. Applications for a resident visa must be declined if a principal applicant does not present acceptable evidence of having transferred the nominated settlement funds within 12 months (or 18 months if an extension is granted, see provisions (c), (d), and (e) below) from the date of approval in principle.
3. Principal applicants may request an extension to their transfer period for up six months.
4. If a principal applicant wishes to request an extension to the timeframe for transferring the nominated funds to New Zealand, they must contact the immigration officer within 12 months of the date of the letter advising of Approval in Principle and present evidence of reasonable attempts to transfer the nominated funds to New Zealand.
5. Following a principal applicant’s presentation of evidence an immigration officer may:
   1. grant an extension to the transfer period if they believe the evidence shows the principal applicant has made reasonable attempts to transfer the nominated funds within the 12 month time period; or
   2. decline to grant an extension to the transfer period if they believe the principal applicant has not made reasonable attempts to transfer the nominated funds within the 12 month time period.

F4.30.10.15 Transferring funds to New Zealand

1. When their application meets the requirements for tier one through settlement funds, as per F4.30.10, and is approved in principle, the applicant will be required to transfer the nominated settlement funds to New Zealand and meet the evidential requirements set out at F4.40.30.10.
2. A minimum of NZ$500,000 in total must be transferred to New Zealand.
3. These funds must be the funds initially nominated, or the funds that result from the sale of the same assets as those initially nominated, in the resident visa application; and
   1. be transferred through the banking system directly from the principal and/or secondary applicant's bank account(s) to New Zealand; or
   2. be transferred by a foreign exchange company to New Zealand through the banking system. Immigration officers may not accept the transferred funds if the applicant cannot provide satisfactory evidence of the following:
      • the nominated funds have been transferred to the foreign exchange company directly from the applicant’s bank account(s); and
      • the nominated funds have been transferred through a foreign exchange company in a way that is not contrary to laws of New Zealand; and the nominated funds transferred are traceable; and
      • cash transactions were not made; and
      • the foreign exchange company is not suspected of, or proven to have committed, fraudulent activity or financial impropriety in any country it operates from or in.
4. Note: Nominated funds held in a country other than the country in which they were earned or acquired legally must have been originally transferred through the banking system, or a foreign exchange company that uses the banking system from the country in which they were earned or acquired.

Effective 01/04/2018