The government has today released the new complying investment framework for the Significant Investor Visa (SIV) and the Premium Investor Visa (PIV). The new framework will be implemented from 1 July 2015 and will encourage investment into Australian innovation, and emerging companies. Austrade, along with the State and Territory Governments, will become nominators for the SIV, whilst Austrade will be the sole nominator for the PIV.
Under the new framework, SIV applicants will be required to invest a minimum of $5 million over four years in complying investments, which now include:
- A minimum of $500,000 in eligible Australian venture capital or growth private equity funds investing in start-up or small private companies. Within two years, the government will increase this amount to $1 million for new applications;
- A minimum of $1.5 million in an eligible managed fund or Listed Investment Companies (LICs) that invest in start-ups listed on the Australian Stock Exchange (ASX); and
- the balance of $3 million in an eligible managed fund or LICs that invest in a range of other ASX listed companies, eligible corporate bonds and notes, annuities, and real property (with a 10% limit on residential real estate).
This new framework will allow for investments to go into areas that require growth, instead of being put into areas that already see significant capital flow, such as government bonds and residential real estate funds.
The PIV, which will be introduced on 1 July 2015, will target talented and innovative business people, and will offer an accelerated 12 month pathway to permanent residency for those who invest at least $15 million into complying investments. The Australia Government will issue invitations to potential applicants, and Austrade and the States and Territories will also each play a significant role in identifying individuals.
Under the new framework, PIV applicants will be required to invest in eligible investments, including:
- ASX listed assets;
- Australia Government bonds or notes;
- Corporate bonds or notes issued by an ASX listed entity;
- Australian proprietary limited companies;
- Real property in Australia, excluding residential;
- Deferred annuities issued by Australian registered life companies; and
- S&T government approved philanthropic donations.
There will be a further requirement that cash is to be 20% or less of a fund’s net assets, and derivatives are to be used for risk management purposes only.
FCB Smart Visa will update you on any further developments on SIVs and PIVs as information is released. To discuss how these changes might affect your current situation, please contact an FCB Smart Visa migration agent on (02) 9922 5188.