The new Significant Investor Visa was launched on 24 November 2012. The new visa program provides Australian companies and fund managers with an opportunity to market products to high net worth individuals seeking investment immigration. The visa program is expected to prove popular with immigrants from Asia, particularly from China.
This new visa requires applicants to invest at least $5 million in Government bonds, managed funds or private Australian companies, and to be nominated by a State or Territory Government.
Please follow the following link for more information on the Significant Investor Visa. http://www.immi.gov.au/skilled/business/whats-new.htm
Visa Applicants must:
Applicants will be granted a number of concessions which include:
Successful applicants will initially be granted a four year provisional Subclass 188 visa. Investors will be required to maintain their investment of at least $5 million in complying investments for a minimum of four years before being eligible to apply for a permanent (Subclass 888) visa.
To be granted a permanent Significant Investor Visa, the primary visa holder must be resident in Australia for at least 40 days for every year or part year that they have held a provisional Significant Investor Visa. The residence period does not need to be met per year but can be met cumulatively over the time the primary visa holder held the provisional visa. That is, the visa stream features a residence requirement of 160 days spent in Australia over four years while holding the Business Innovation and Investment (Provisional) (Subclass 188) visa.
State or Territory nomination
Each State/Territory has their own criteria for nomination, for example:
New South Wales
The NSW Government will require that applicants invest 30% of the required $5 million in NSW Waratah Bonds.
The South Australian Government will require that applicants commit to conducting 6-monthly surveys during the provisional visa term (at least 4 years).
The applicant must also commit to meeting the permanent (Subclass 888) visa 30 November 2012 requirements. One of the permanent visa requirements is that the main applicant must have held a minimum required average of $3 million investment in a South Australian ASIC registered proprietary business which undertakes its business in South Australia for any 2 years in the 4 years of the provisional 188 visa. The South Australian Government has indicated that it will be flexible in assessing applicants against these requirements. Applicants will also be required to visit South Australia and meet in person with a representative of the business migration unit.
The Western Australian Government will consider applicants on a case by case basis with the contribution to the Western Australian economy being the prime factor considered for approval of State nomination. Further, applicants must have business and/or personal assets of at least $5 million which are available for investment in a complying investment(s) in Australia immediately prior to visa grant and an additional $50,000 which is available for domestic and/or settlement purposes.
The Tasmanian Government will require applicants to provide details of the proposed investment in Tasmania, including details of how that investment will benefit the Tasmanian economy.
Applicants will be considered on a case by case basis with preference given to applicants with investments that have a direct economic benefit to Queensland. Applicants should have a genuine and realistic commitment to reside in Queensland. Complying investments can include Queensland Treasury Corporation’s Queensland Bonds which are used for significant infrastructure projects in Queensland. If the investment is in a new or existing business, the business will be required to be registered and operating in Queensland.
The other States/Territories are currently finalising their criteria for nomination under the Significant Investor Visa. However, it is likely they will require applicants to make an investment or investments which satisfy a ’benefit to the State/Territory’ test, or equivalent.
Complying investments for the Significant Investor Visa stream include:
To be complying, a managed fund must satisfy the following:
The Minister has specified the following categories of permitted investments in managed funds:
A direct investment in an Australian company, to be classed as a ‘complying investment’, must meet the following criteria:
A qualifying business relevantly means an enterprise that is operated for the purpose of making profit through the provision of good, services or goods and services (other than the provision of rental property) to the public, and is not operated primarily or substantially for the purpose of speculative or passive investment.
Speculative investments are those involving the purchase or sale of something for the sole purpose of making a capital gain, and includes business ventures based on a high level of speculation with a great risk of potential failure, particularly if success is dependent on external factors. Passive investments are money raising activities that, similar to collecting rent from rental properties, require little or no input.
It should be noted that the complying investment made by the visa applicant may be a passive investment. It is the company in which the visa applicant invests which must operate business which is not for the purpose of passive investment.
Should you be seeking a responsible entity or trustee to establish a complying managed investment scheme, One Investment Group is well placed to provide responsible entity and trustee services, holding 6 Australian Financial Services Licences and operating in excess of 100 managed investment schemes.