New 188c (Significant Investor Visa) criteria - July 1

[Steve Elliott]

Some readers may be aware that the Australian Government conducted a major review into the Business Innovation and Investor Visas, the findings were published in December which proposed changes set to commence in a few weeks on July 1.

The 188c, often referred to as the Significant Investor Visa (SIV), or "Golden Visa" by some, was launched in 2012 to attract prospective migrants with $5m to invest in Australian assets as a 4 year pathway to permanent residency. Since it's establishment over 2,200 people have been granted this visa and collectively invested over $11 billion in Complying Investments. The visa was unashamedly targeted at the Chinese market which has accounted for over 85% of applications. Having said that, there has been very noticeable trend of passport holders from other nationalities applying. In particular Vietnam, Hong Kong as well as South Aftrica, UK, USA and the EU.

For those fortunate enough to have $5m to invest, the eligibility criteria is very attractive as unlike other 188 visas, applicants are not required to pass a language test, there is no upper age limit (currently under 55 for other 188s), no points test and the residency requirement is only 160 days over a four year period. This means applicants can essentially remain in the country of origin except for an average of 40 days per year, where they need to be onshore in Australia.

The investment requirement is a mix of Venture Capital (minimum of $500k), Emerging Companies (minimum of $1.5 million) and the remainder of the $5m in a balancing investment.

While out of reach of many, it is potentially very attractive to those with the funds.

There will be some changes being introduced on 1st July which I will post if there is any interest.

One trend I have certainly identified is a significant spike in Investment Visas for Australia triggered by the devastating impact of Covid-19.   The reasons pointed to by many vary, but Australia's relative good performance in tackling Covid is a factor quoted by most. Fingers crossed this continues.

Please note the new changes afoot only impact applicants who have not yet lodged visas.

Good luck everyone.

 

[Steve Elliott]

I have already had some queries re the proposed changes to the SIV. Essentially, the change \s are minimal as follows:

The Venture Capital/Private Equity component will rise to $1million, the Emerging Companies component remains at $1.5 million and the balancing investment is reduced to $2.5million. As was the case beforehand, these investments have to be accessed primarily through certain fund managers who are able to certify that their funds comply with the very detailed fund requirements. It is also of paramount importance that these funds remain compliant for the required period which is generally a minimum of four years.