Immigrate To Australia By Significant And Premium Investor Visa Plans

21 Jul 2015

From 1 July 2015, Australian Govt has made few regulations which it would like to implement such as a new premium Investor Visa (PIV) program and secondly it has proposed changes to the significant investor visa (SIV) program.

Number of changes has been introduced to the permitted investments, for SIV, minimum investments to be made in Australia is AUD$5 million.

Premium Investor Visa

The PIV is a new streams which would be available from 1 July 2015. The PIV requires AUD$5 million investment in Australia. The PIV enables the successful applicants to obtain permanent residency after an accelerated period of 12 months.

The PIV aims to attract business skills as well as entrepreneurial talent to Australia which are aligned to National or State and Territory investment priorities.  Permitted investments might be though Australian managed investments funds, LIC’s or direct investment in one or more of the following.

• Philanthropic contributions approved by the Territories or States
• Annuities issued by a life company
• Australian Proprietary ltd companies
• corporate bonds or notes issued by the Australian exchange listed entity
• Investment grade rated Australian corporate bonds or notes rated by the AFS licensed Rating agency
• Australian Govt or semi govt bonds or notes
• Cash held by Australian ADIs but cash should not make up more than 20% of the funds net assets
• Derivatives-should be used only for risk management purposes
• Australian exchange listed securities
• Commercial real property in Australia

Significant Investor Visa

The Changes made to SIV program came into effect on 1 July 2015

Austrade is now one of the referring agencies which are able to make recommendations for the SIV ( in additions to the States and Territories). There has been a number of changes to permitted SIV investments.

New SIV Investment Mix

Venture capital funds

• Investment in or more Australian venture capital Ltd. partner funds
• Funds must be of Australian industry registered under the Early stage Venture capital Ltd and Venture capital Ltd partnership programs

Funds/Listed Investment Companies Investing In Emerging Companies

Permitted investment may be through one or more managed investment funds or listed investment companies (LICs). The issuer of these interests must have minimum of $100 funds under management in Australia and the investments must be made in or more of the following

• Securities of companies which have market capitalization of <$500m at time of purchase. Investments can be in
• Australian ASX listed companies
• Australian unlisted companies (should not exceed 20% of the funds net assets)
• Other Australian exchange listed companies (should not exceed 10% of the funds net assets)
• Foreign exchange listed companies (must not exceed 10% of the fund’s net assets)
• Cash held by Australian ADIs, including the certificates of deposit, other cash like instruments, bank bills, but these should not exceed 20% of the fund’s net assets
• Derivatives –These should be used only for risk management purposes.
• The investment must be maintained in securities issued by 20 or more different issuers.
• Up to 30% of the fund’s net assets can be held in investee companies which have grown their market capitalization.$500 million.
• Investment in an individual security should not exceed 10% of the fund’s net assets.
• The investment must not be made in securities issued or proposed to be issued by the Govt or in debentures.

Balancing Investment

• Permitted investments may be through one or more managed funds or LIC’s
• The investment vehicle may invest only in one or more of the following
• Securities of a company, infrastructure trust, real estate investment trust, provided they are quoted on an Australian Securities exchange.
• Annuities issued by the Australian registered life companies, but he repayment of capital cannot commence during the visa period.
• Corporate bonds or notes issued by the Australian exchange listed entity.
• Investment grade rated Australian corporate or registered foreign company bonds or notes rated by the AFS licensed rating agency.
• Australian real property(subject to 10% limit on residential real estate)
• Cash held by Australian ADis, including the certificates of deposit, bank bills and other cash like instruments, should not exceed 20% of the fund’s net assets.
• Derivatives should be used only for risk management purposes

Australian Financial Services Licensing (AFSL) Requirements

• The general partner of a venture capital fund, trustee or responsible entity of the managed investment scheme,
• Issuer of shares in LIC , insurer or investment manager in relation to the above investment vehicles
• Must hold an AFSL or should be exempt from the need to hold one.
• Should have their central management as well as control in Australia
• Be unrelated to investor, their spouse or defector partner. 

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