Australia Announces Amendments To Investor Visa Programs

24 Feb 2015

The government of Australia has announced a draft investment scheme for an improved SIV (Significant Investor Visa) program as well as design options for a new PIV (Premium Investor Visa) program.

Under the wider competitiveness agenda, amendments have been proposed for exceptional directing investments by means of visa schemes into more active areas of economy, including small emerging firms and venture capital.

The new scheme and design options were progressed by Austrade after initial rounds of stakeholder consultation that has allured 68 written submissions.

Presumably, the review elucidates that under the current Significant Investor Visa program investment is directed mainly into passive investments such as government bonds.  Potential candidates are required to provide a minimum investment of $5 million, in complying investments at least for a period of four years. According to proposed reforms, government bonds will not be under complying investment class.

Under the proposed complying investment scheme for Significant Investor Visa program, includes at least 20% or $1 million of aspirants investment ($5 million) should streamed into early stage, increase capital investments, via approved venture capital funds.

The new investment scheme also states that a minimum of 30% or $1.5 million of aspirant’s investment should flow into rising listed firms, via managed finance investing in small Australian stock exchange listed firms. It also strengthens the current rules, and a part of finances would keep on flowing into commercial real estate through managed funds.

Moreover, there are also improved measures to provide better security for investors. The PIV program would need at least $15 million investment and offer an expedited 12 month path to Australia citizenship.

In terms of investment class, Premium Investor Visa program will be more flexible and will intend to entice business individuals as well as high-caliber entrepreneurs to Australia.

Australia’s assistant immigration minister, Michaelia Cash, explained that the reforms would woo more investment towards high growth firms and also would assist in commercialization of huge Australian research.

The amendments are also made to observe complete latent of Australia’s government investor visa program realized, when retaining robust security to the country’s immigration program.

She added that reforms to comply investment scheme for SIV and latest PIV would come into force from 1 July 2015. The proposed reforms include higher risk as well as potentially higher return investments like venture capital, which would offer a better latent boost to country’s economy.

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