Most Read Contributor in Australia, September 2016
Effective from 23 November 2013, the categories of managed
funds, regulated by the Australian Securities and Investments
Commission (ASIC) which qualify as a
'complying investment' for the purposes of the Business
Innovation and Investment (Provisional) (subclass 188) visa and the
Business Innovation and Investment (Permanent) (subclass 888) visa
(Significant Investor Visa or
SIV), will be significantly expanded.
Significant Investment Visas
In order to qualify for a SIV, individuals must:
submit an application and be nominated by a State or Territory
make an investment of at least five million Australian dollars
into complying investments; and
if granted a provisional visa (subclass 188), the individual
must reside in Australia for a period of 160 days over four years
in order to qualify for a permanent visa (subclass 888).
In order to comply, an investment must be made in one or more of
Commonwealth, state or territory bonds;
direct investment into an Australian proprietary company that
is not listed on an Australia stock exchange; and
ASIC regulated managed funds with a mandate for investing in
Individuals may invest in any combination of complying
investments, and may switch between different types of complying
investments, provided the total investment exceeds AUD$5
The investor must make the investing using funds:
held personally by the individual, or with their spouse or de
from a company provided all shares in that company are held by
the individual, or with their spouse or de facto partner; or
through a trust provided the individual, or the individual with
their spouse or de facto partner, are the sole trustee[s] and
ASIC regulated managed funds
The classes of ASIC regulated managed funds which are complying
investments for the purposes of SIVs will be significantly expanded
with effect from 23 November 2013 as a result of a new legislative
instrument issued by the Minister of Immigration.
Substantive changes include:
the expansion of approved classes of cash held by Australian
deposit-taking institutions to include negotiable certificates of
deposit, bank bills and other cash-like instruments;
bonds, equity, hybrids or other corporate debt in companies and
trusts expected to be listed within 12 months on an
Australian Stock Exchange will now be considered complying
the addition of several additional categories of complying
bonds or term deposits issued by an Australian financial
annuities issued by an Australian life company in accordance
with section 9 or 12A of the Life Insurance Act 1995;
derivatives used for portfolio management in non-speculative
purposes which constitute no more than 20% of the total value of
the managed fund; and
loans secured by mortgages over the investments including
infrastructure, cash investments, government bonds, listed
securities, corporate bonds, real property, agribusinesses and
Historically, very few ASIC regulated managed funds would have
been considered a complying investment. These expanded categories
of complying ASIC regulated managed funds therefore create
significant additional opportunities for foreign investors seeking
residency in Australia.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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