The Significant Investor visa is targeted at high net worth individuals who will invest at least AUD$5 million in complying investments in Australia for at least four years. During this time, the individual will have the temporary visa and after four years will be eligible to apply for the permanent residency.
Process
There are two steps to the process. First, you must be nominated by a State or Territory government. Most nominating State or Territories expect that if they sponsor you, you will live in the State or Territory. The investment requirements for each State and Territory differ marginally.
Second, the visa application will then have to be approved by the Commonwealth Government Department of Immigration (‘DIAC’).
Investor
For people who are experienced and willing to make a designated investment into an Australian Government Security for a fixed period of time may apply for the Investor visa.
What are ‘COMPLYING INVESTMENTS’?
- A ‘complying investment’ consists of one or more of the following:
- An investment in a government bond (however described) of the Commonwealth, a state or territory
- An investment in a managed fund (directly or through an investor directed portfolio service) (summarised below)
- A direct investment by taking an ownership interest in an Australian proprietary company that is not listed on the Australian Securities Exchange and that operates a ‘qualifying business’ in Australia (ie passive speculative or investment business is excluded), subject to certain conditions.
Applicants may hold investments in each of the above complying investments and may also switch between the investment options, provided that they meet certain reinvestment conditions. It is likely that the category of managed fund investment will provide the most scope for ready and flexible investment by applicants under the Significant Investor Visa.
INVESTMENTS IN A MANAGED FUND
In order to be classed as a ‘complying investment’, an investment in a managed fund must satisfy the following conditions:
- The investment is a ‘managed investment scheme’ (within the meaning of the Corporations Act)
- The interests are not able to be traded on a financial market
- No representation has been made to any member of the managed investment scheme that the interests will be able to be traded on a financial market
- The issue of the interest is covered by an AFSL.
In addition, the managed fund must be limited to categories of investment specified by the Minister in an instrument in writing. These categories include the following:
- Infrastructure projects in Australia
- Cash held by Australian deposit-taking institutions
- Bonds issued by the Federal Government 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
- Australian agribusiness
WHAT IS THE TERM OF THE SIGNIFICANT INVESTOR VISA?
The Significant Investor Visa operates for an initial term of four years. However, holders can extend their visa term if they satisfy certain requirements (including if they have held complying investments for at least four years and continue to meet the relevant conditions). They will be allowed to extend their provisional visa by an additional two years, with a maximum of two extensions permitted, bringing the maximum total period on a provisional Significant Investor Visa to eight years.
WHAT ARE THE ADVANTAGES TO THE SIGNIFICANT INVESTOR VISA?
For migrants, the Significant Investor Visa has a number of advantages over other types of visas. Successful applicants will be granted the following concessions:
- No upper age limit
- No requirement to meet a points test
- A reduced residency requirement of 160 days over four years in order to qualify for a permanent visa
Interested to invest, establish and set up a business in Australia?
