May 21, 2015
The Australian Government has announced a new complying investment framework that will come into force on 1 July 2015. The new framework has been introduced to ensure the Significant Investor Visa (SIV) program offers the best balance between investment migration and economic benefit to the local economy. The changes are targeted at moving SIV applicants away from passive investments such as government securities to more innovative and emerging Australian companies and industries. Loan back agreements will now be expressly prohibited.
Holders of a SIV are still required to invest $5m for a minimum of four years before being eligible to apply for a permanent visa. The revised framework comprises three types of capital investment:
- At least $500,000 towards start-ups and small companies.
- At least $1.5m towards eligible fund managers that predominately invest in listed emerging companies.
- A balancing investment that can be spread across a range of assets but with some restrictions.
The government has also introduced a new Premium Investor Visa (PIV) which has a $15m investment threshold. The PIV will permit a broader range of eligible investments and allow eligibility to apply for permanent Australian residency after 12 months. These changes move Australia closer to the Canadian and Singapore government models aimed at boosting innovation.
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