The 1st of July is an important date for many of the changes announced in the recent Australian Federal Budget. It is also a date of significance for the Significant Investor Visas and Premium Investor Visas where the new framework instigated from the Government’s 2014 Industry Innovation and Competitiveness Agenda will be implemented.
The Agenda was announced last year by Prime Minister, Tony Abbott and after months of consultation to interested stakeholders from Austrade, recommendations were made which contributed to the new framework and application procedures for the Significant Investor Visa.
The new arrangements focus on a more comprehensive breakdown of how a Significant Investor applicant is required to designate the $5 million investment over 4 years into the Australian economy. Austrade announced that the following changes will be applied from the 1st of July and in order to be eligible to apply for the Significant Investor Visa, the complying investments will be required to include:
Up to $3 million: To be invested in a ‘balancing investment’ in managed fund(s) or Listed Investment Companies (LIC’s). The LIC must invest in a combination of Australian Securities Exchange (ASX) listed companies, annuities and eligible corporate bonds and notes. The combination of required assets must also include real property which is subject to the 10% limit on residential real estate. A SIV holder can independently invest in real estate for their own interests but a direct investment into real estate will not (as is the case currently), contribute to the complying investments.
At least $1.5 million: To be invested in LIC’s that invest in emerging companies listed on the ASX or an eligible managed fund(s).
At least $500,00: To be invested in Australian venture capital or growth private equity fund(s) which are investing in small and start-up private companies.
The Premium Investor Visa (PIV) is an accelerated twelve month pathway tailored towards innovators and entrepreneurs and is scheduled to be introduced on the 1st of July also. The PIV is an invitation only program in where potential applicants will be nominated by Austrade to the Australian Government. These applicants must be able to meet a $15 million threshold.
If you would like any more information on either the Significant Investor Visa or the Premium Investor Visa, contact one of our qualified migration agents today.