The Significant Investor Visa (SIV) provides Australia with a boost to its economy by increasing the flow of investment to the nation.
Following a review of the SIV programme in 2014, changes are underway to improve the investor scheme. This will include a new Complying Investment framework to further benefit Australia through the introduction of even higher investments.
To ensure the integrity of the investor visa scheme is maintained, the Australian Government has decided to temporarily suspend all new nominations from 24 April 2015. It will re-open on 1 July 2015 with the introduction of the new Complying Investment framework and the implementation of corresponding amendments to the Migration Regulations 1994.
During the temporary suspension, prospective applicants can still lodge an Expression of Interest (EOI). Anyone who has lodged an EOI by 1 July 2015 will be able to be nominated from that date, and will be subject to the new Complying Investment framework. Any SIV applicants invited to apply prior to the suspension will continue to be processed under the current legislation.
Austrade has recently released the proposed Complying Investment framework options for the SIV programme as follows:
- Direct investment into residential real estate is ineligible and indirect exposure through investment vehicles (i.e. managed funds) is to be restricted to less than 10% of the vehicle’s net assets
- Exclude ‘loan back’ arrangements where the SIV investment is used as collateral by applicants
- Derivatives are to be used for risk management purposes only and combined cash and derivatives be limited to 20% notional exposure of a fund’s net assets
- Investments through Australian Financial Services (AFS) licensed products are to be with managers independent of the applicant and their spouse
- Allow ‘Fund of Fund’ managed funds
- Mandatory investment of a minimum $1 million, at time of investment, in an Australian Venture Capital limited partner fund
- Mandatory investment of a minimum $1.5 million, at time of investment, in small/micro capital companies
- AFS licensed fund managers that are Australian domiciled providing managed funds (open and close end) invested in:
- Australian exchange listed companies (large, mid, small, micro), AREITS, infrastructure trusts, preference shares, convertible bonds, or corporate issued floating rate notes
- Australian issued corporate bonds (financial and non-financial companies)
- Australian friendly society insurance bonds
- Deferred annuities issued by Australian registered life companies but cannot commence paybacks during the qualifying period
- Commercial and Industrial property in Australia
Alongside these changes to the SIV programme, there is also a proposed introduction of a Premium Investor Visa (PIV) programme which requires a higher investment, and offers permanent residency within a shorter time frame.
Premium Investor Visa
The proposed PIV programme will include the following:
- Applicants must invest at least $15 million into Complying Investments, which may include new investments or investments made within the last 2 years
- Applicants will have the opportunity for permanent residency after 12 months of maintaining their Complying Investments
- Proposed Complying Investment options for PIV are more flexible than the SIV programme and do not include a mandatory requirement to invest in Venture Capital or Small/Micro Capital companies, but still exclude residential real estate, ‘loan back’, and must be FIRB compliant etc
- No minimum residency requirements for either primary or secondary applicants
The Government has yet to release any draft legislation on the proposed PIV and the above proposed changes to the SIV programme.
FCB Smart Visa will update you on any further developments 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.