Jump to content

    Recommended Posts

    Introduction
    The SIV Investment Framework was updated on 1 July 2015, with the purpose of helping to
    stimulate the Australian economy through investment into the three stages of business –
    start-up, expansion and maturity. It is
    aimed at investing capital into innovative Australian
    businesses and the commercialisation of Australian ideas, research and development.

     

    Current Requirements (from 1 July 2015)
    SIV applicants are required to invest at least $5 million over four years in complying
    investments, which must include
    :
    Venture Capital and Growth Private Equity Funds – 10 percent (AUD 500,000)
    Eligible managed fund(s) or listed investment companies (LICs) that invest in
    Emerging Companies – 30 percent (AUD 1.5 Million)
    Balancing Investment – AUD 3 Million
     

    Note that investments in VCPE and Emerging Companies may be for higher amounts than
    the mandated minimums and up to the full amount of the balancing investment quota.

     

    Venture Capital and Growth Private Equity (VCPE)
    In order to be eligible to take SIV investment, a VCPE fund must be registered under the
    Early Stage Venture Capital Limited Partnership (ESVCLP) or Venture Capital Limited
    Partnership (VCLP) programs, operated by the Department of Industry and Science
    . The
    mandatory investment of at least AUD 500,000 in an AusIndustry registered fund(s) can be
    in either ESVCLP or VCLP.
    VCPE is a form of investment that provides capital to typically
    new, innovative, start-ups or fast-growing, unlisted, small private companies
    . This amount is
    expected to be increased as the market responds.


    Emerging Companies
    The mandatory investment of at least AUD 1.5 million is to be made in approved managed
    funds investing in emerging companies listed on the Australian Stock Exchange (unlisted
    companies are to be no more than 20% of the fund’s net assets). Up to 10% of the fund’s
    net assets may be invested in foreign exchange listed companies (eg. New Zealand). Cash is
    to be no more than 20% of a fund’s net assets.

    Fund Managers are to have and maintain a minimum AUD 100 Million in firmwide funds
    under management (FUM) to be eligible to offer a complying fund(s) to applicants.

    Balancing Investment
    A ‘balancing investment’ of up to AUD 3 Million is to be made in managed funds that may
    invest in a range of assets, including Australian Stock Exchange listed companies, Australian
    corporate bonds or notes, annuities and commercial real estate
    (subject to the 10 per cent
    limit on residential real estate).

    A corporate bond allows a company to raise money from investors to finance business
    activities. In return for your money, the company issuing the bonds promises to pay you
    interest at regular intervals and return the money invested on the set
    maturity date.
    Corporate bonds generally offer higher returns than cash,
    government bonds or bank term
    deposits
    , but less returns than shares.


    Making an SIV Complying Investment
    All SIV investments, by law, must be provided by an Australian Financial Services (AFS)
    licensed manager domiciled in Australia. Fund managers must be independent of the
    applicant, the applicant’s spouse or de facto partner, and any associate of the applicant.
    Before
    applying for a Significant Investor Visa, applicants need to be nominated by a state or
    territory government or Austrade.


    Risk Management
    Complying investments may carry risk and it is the applicant’s responsibility to evaluate and
    determine the merit, viability and risk of the proposed investment or business and to verify
    the reliability, accuracy and completeness of the information gathered.
    It is highly recommended that you seek migration, legal and financial advice regarding your
    proposed investment to ensure compliance with all eligibility requirements. Australian Visa
    Options works closely with Ord Minnett to provide end to end solutions in the financial and
    legal management of your SIV application. This ensures compliance with the relevant
    legislation, and minimises the risks to the success of your visa application.

     

    More Information
    You can find more information about the topics mentioned above at the following websites:
    AusIndustry Program Summary
    Department of Industry, Innovation and Science
    www.business.gov.au
    188 Business and Investment (Provisional) Visa
    Department of Home Affairs
    www.homeaffairs.gov.au
    Significant and Premium Investor Programs
    Austrade (Australian Trade and Investment Commission)
    www.austrade.gov.au
    Corporate Bonds
    Australian Securities and Investments Commission (ASIC)
    www.moneysmart.gov.au
    Corporate Bonds
    Australian Stock Exchange
    www.asx.com.au
     

     

    Edited by NickyNook
    Removed self-promoting details.

    Lisa De Leon - Registered Migration Agent MARN 1170616

    lisa@australianvisaoptions.com.au

    www.australianvisaoptions.com.au

    Share this post


    Link to post
    Share on other sites

    Create an account or sign in to comment

    You need to be a member in order to leave a comment

    Create an account

    Sign up for a new account in our community. It's easy!

    Register a new account

    Sign in

    Already have an account? Sign in here.

    Sign In Now


    ×