Significant Investor Visa and Premium Investor Visa
What is covered in this article?
• Significant Investor Visa & Premium Investor Visa
• Business Innovation & Investment Program
• Business Innovation Stream – Investor Stream – Significant Investor Stream – Premium Investor Stream – Entrepreneur Stream
• Complying Investments
• Eligibility & Potential Applicants
• Timeframes & Obligations.
At Capri Financial Services, we understand that many potential investors wanting to make significant contributions to the Australian economy are in fact, not residing locally. Investment opportunities and economic growth is lucrative in Australia, and it’s no surprise that individuals and organisations are eager to enter the country wanting to take advantage of the stable environment we offer.
However, there are policies in place to ensure investors wishing to contribute their expertise to our economy are accepted under the currently enforced government legislation. This identifies significant investors, premium investors, and foreign entrepreneurs. It is in our interest to help these individuals take the correct course of action. We therefore would like to provide an overview of the ‘Significant Investor Visa’ and ‘Premium Investor Visa’, and offer our assistance if you, your family, your colleagues or business partners are looking to take the next step in Australian investment activity.
So, what is the Significant Investor Visa and Premium Investor Visa?
The Significant Investor visa is a stream within the Business Innovation and Investment (Provisional) (Subclass 188) visa and the Business Innovation and Investment (Permanent) (Subclass 888) visa. The purpose of the visa is to provide a boost to the Australian economy and to compete effectively for high net worth individuals seeking investment migration. Significant Investor Visa (SIV) holders are required to invest AUD5million into complying significant investments for a minimum of four years before being eligible to apply for a permanent visa.
The Premium Investor visa (PIV) is a stream within the Business Innovation and Investment (Provisional) (Subclass 188) visa and the Business Innovation and Investment (Permanent) (Subclass 888). The purpose of the Premium Investor visa is to attract a small number of high net worth individuals to contribute their entrepreneurial skill or talent to Australia. The Premium Investor visa will require applicants to invest AUD15million into complying investments for a minimum of twelve months before being eligible to apply for a permanent visa.
Capri Financial Services provides access for potential investors and entrepreneurs to gain entry to the Australian economy by assisting in the referral and nomination process, and by assisting in the allocation of funds for complying investments.
Who Is This For: The Business Innovation and Investment (Provisional) visa (subclass 188) is part of the Business Innovation and Investment Program.
You must submit an Expression of Interest (EOI) through SkillSelect and be nominated by an eligible government organisation before being invited to apply for this visa.
SkillSelect: is an online service that enables skilled workers, business people and investors interested in migrating to Australia to record their details to be considered for a relevant visa through an Expression of Interest.
Intending applicants for a provisional Business Innovation and Investment visa will record their proposed investment in Australia and once nominated by a State or Territory government will be issued an invitation by the Australian Government to lodge a visa application. See: www.immi.gov.au/skills/skillselect/
Who Could Get This Visa? To be eligible you must:
– Be nominated by an eligible government organisation
– Be invited to apply for the visa
– Have experience in owning and operating a business (Business Innovation stream), or..
– Have at least AUD1.5 million to invest (Investor stream) or
– Have at least AUD5 million to invest (Significant Investor stream) or
– Have at least AUD15 million to invest (Premium Investor stream)
– You (and all members of your family unit) meet certain health and character requirements
– Meet additional requirements of the relevant stream.
What Can Capri Do For You:
Capri Financial Services can assist in the development of investment strategies and the allocation of funds to which the legislation applies. By coming up with the right strategy, and by identifying the allocation of resources to ensure effective solutions are met, Capri can provide positive returns for investors, and contribute to the economic growth of domestic markets.
Referral: Potential applicants who are interested in being “referred” by Austrade to a state or territory government for nomination consideration can complete the Austrade referral form. There is no fee for referral but Austrade will undertake a background check before referring applicants to a state or territory government.
Nomination: Potential applicants interested in being “nominated” by Austrade, can complete an Austrade nomination form. Austrade charges a $1,000(¥110,000) application fee and will undertake a background check on all applicants.
Australian Values Statement: If you are 18 years of age or older, you must sign an Australian Values Statement to confirm that you will respect the Australian way of life and obey Australian laws. The statement is included in the visa application form. You must have read, or had explained to you, the Life in Australia book before you sign the statement.
What You Can Do:
This visa lets you:
– Establish a new or develop an existing business and/or invest in Australia, make a designated investment with an Australian state or territory government, make and maintain complying investments in Australia or participate in a complying entrepreneurial activity in Australia.
– Travel in and out of Australia for the life of your visa
– Bring members of your family unit with you to Australia
– Seek permanent residence by applying for a Business Innovation and Investment (Permanent) visa (subclass 888).
The visa includes five streams:
Business Innovation Stream: for people with business skills who want to establish, develop and manage a new or existing business in Australia. Applicants must be nominated by a state or territory government.
Investor Stream: for people who want to make a designated investment of at least AUD1.5million in an Australian state or territory and maintain business and investment activity in Australia. Applicants must be nominated by a state or territory government.
Significant Investor Stream: for people who are willing to invest at least AUD5million into complying significant investments in Australia and want to maintain business and investment activity in Australia. Applicants can be nominated by a state or territory government or Austrade on behalf of the Australian government.
Premium Investor Stream: for people who are willing to invest at least AUD15million into complying premium investments in Australia and want to maintain business and investment activity in Australia. Austrade will make the initial contact with suitable candidates for nomination on behalf of the Australian government.
Entrepreneur Stream: for people who have a funding agreement from a third party for at least AUD200 000 to undertake a complying entrepreneur activity that is proposed to lead to either the commercialisation of a product or service in Australia or the development of a business in Australia. Applicants must be nominated by a state or territory government.
Holding this visa is the first stage before becoming eligible to qualify for a Business Innovation and Investment (Permanent) visa (subclass 888).
Complying Investments: for the Significant Investor visa include:
• Commonwealth, State or Territory government bonds
• Australian Securities and Investment Commission (ASIC) regulated managed funds with a mandate for investing in Australia; and
• Direct investment into Australian proprietary companies.
Visa applicants may hold investments in each of the above investment options and may also change between complying investments, provided they meet specified reinvestment requirements.
The investment must be made and held:
• Directly by the applicant or together with their spouse or de facto partner; or
• Through a company where the total amount of issued shares are owned by the applicant or together with their spouse or de facto partner; or
• Through a valid trust where the trustees and beneficiaries include the applicant or their spouse or de facto partner together.
Australian Securities and Investment Commission regulated managed funds: An ASIC regulated managed fund for the purpose of the Significant Investor visa is a managed investment scheme defined in the Corporations Act 2001 and regulated by the Australian Securities and Investment Commission. Any interests issued in the fund must not be able to be traded on a financial market and must be covered by an Australian Financial Services Licence. Capri is a registered AFSL licence holder.
Investments in ASIC regulated managed funds include any investments made through an Investor Directed Portfolio Service, such as a Capri advised managed fund.
For an ASIC regulated managed fund to qualify as a complying investment it must be limited to categories of investments specified by the Minister in a legislative instrument in writing.
These categories include:
• Infrastructure projects in Australia
• Cash held by Australian deposit taking institutions
• Bonds issued by the Commonwealth or a State or Territory government
• Bonds, equity, hybrids or other corporate debt in companies and trusts listed on an Australian stock exchange
• Bonds or term deposits issued by Australian financial institutions
• Real estate in Australia (non-residential); and
• Australian agribusiness.
The managed fund must be open to the general public and the fund manager must provide a compliance declaration on Form 1413 that their services would be limited to the categories of investments in Australia specified by the Minister in the legislative instrument.
Direct investment into Australian proprietary companies: For a direct investment into an Australian proprietary company to qualify as a ‘complying investment’, the following criteria must be met:
• The company must genuinely operate a qualifying business in Australia
• The applicant must obtain an ownership interest in the company
• The company must be registered with ASIC; and
• The business must have an Australian Business Number.
Qualifying Business: The Migration Regulations 1994 define a qualifying business as an enterprise that:
a) is operated for the purpose of making profit through the provision of goods, services or goods and services (other than the provision of rental property) to the public; and
b) is not operated primarily or substantially for the purpose of speculative or passive investment.
Ownership Interest: The Migration Act 1958 defines ownership interest
In relation to a business, means an interest in the business as:
a) a shareholder in a company that carries on the business; or
b) a partner in a partnership that carries on the business; or
c) the sole proprietor of the business. Including such an interest held indirectly through one or more interposed companies, partnerships or trusts.
Capri Financial Services can help:
Capri Financial Services can assist throughout each stage of development, and provide advice on complying investments or entrepreneurial activity.
How Long Does The Visa Last: The visa is valid for four years and three months from the date it is granted.
Note: If you applied for a subclass 188 visa in any stream prior to 1 July 2015, your visa will be valid for four years. If this applies to you and you hold a visa in the Investor stream or the Significant Investor stream you will be eligible to apply for a subclass 888 permanent visa after 3 years and 11 months.
You might be able to extend your stay under an extension stream if you hold this visa under the Business Innovation stream or the Significant Investor stream and need extra time to meet the criteria for a permanent (subclass 888) visa. If you hold this visa under the Investor stream or Premium Investor stream, you cannot apply for an extension stream under this visa.
Provisional visa holders in the Business Innovation stream can apply for one extension for an additional two years so your visa can last up to six years.
Provisional visa holders in the Significant Investor stream can apply for up to two extensions for a total of additional four years so your visa can last up to eight years.
Each extension stream lets you stay in Australia for another two years.
Family: You can include the following people in your visa application at the time of lodgement:
– Your partner
– Your child/step-child or your partner’s child/step-child.
The application must include documentary evidence of their relationship to you. After you have applied for this visa but before a decision is made, only members of your family unit can be added to your application.
Members of your family unit who have been granted this visa are eligible to study and work in Australia.
Costs: Members of your family unit who apply after a visa has been granted to you must pay the full visa application charge.
Documents: Members of your family unit who apply after a visa has been granted to you must provide the documents listed under ‘Personal documents’.
The Points Test: You must score at least 65 points (the pass mark) in the points test to be eligible to apply for a Business Innovation and Investment (Provisional) visa (subclass 188) in the Business Innovation stream or the Investor stream.
The points test does not apply to you if you are applying in the Significant Investor stream, the Premium Investor stream, the Entrepreneur stream, the Business Innovation Extension stream, or Significant Investor Extension stream.
The test gives points for various elements of human capital and business innovation and includes objective measures of business performance.
Points are awarded for:
– English language ability
– Experience in business or investment
– Net personal and business assets
– Business turnover
– Special endorsement.
Points are awarded on the basis of the factors listed in the following table. All factors are assessed as at the time you are invited to apply for this visa, unless otherwise noted.
Your Obligations: You and your family members who hold visas must comply with all visa conditions and Australian laws.
Capri Financial Services is here to help:
This is a brief overview of the information available through Austrade and the Business & Skilled Migration Queensland website offered by the Queensland Government. If you are looking to move to Australia and wish to invest or contribute your expertise to the Australian and Queensland economy, then a Significant Investor Visa, Premium Investor Visa or the Entrepreneurial Stream might just be the right avenue for you. We at Capri are here to assist, and if you have any questions, please do not hesitate to contact our office.
Capri Financial Services Pty Ltd
p: +61 07 5527 6040