Further to our previous article on the Significant Investor Visa (SIV), featured in the latest issue of Jade, Andrew Stoner (the Deputy Premier of New South Wales), has officially announced1 a change to the state's nomination requirements on 26 August 2014. From 1 September 2014, applicants wishing to obtain NSW nominations will no longer need to make mandatory investments into NSW Waratah Bonds.

As some of our readers might already be aware, applicants for SIVs are required to obtain nomination from the government of the Australian state or territory where they wish to reside before lodging a visa application. Each Australian state and territory has different requirements for nomination. Prior to this change, the New South Wales Government required potential applicants to invest at least AUD $1.5 million in NSW government-issued Waratah Bonds for a minimum term of four years, as part of their minimum investment of AUD $5 million.

Being the only state government that imposed a mandatory bond investment requirement, NSW faced fierce competition for investments from the neighbouring Victorian Government, which has noticeably more relaxed nomination requirements. The removal of this restriction will greatly improve the NSW Government's competitiveness as well as create significant benefits for potential SIV applicants. Going forward, investors wishing to settle in NSW will be able to move away from low-yield government bonds and gain greater flexibility to choose their preferred investments.

Unfortunately, this change does not benefit investors who successfully obtained a nomination from the NSW Government prior to 1 September 2014. These applicants are still required to make the AUD $1.5 million investment into Waratah Bonds as previously declared in their application.

NSW boasts the second largest number of SIV nominations amongst all States and Territories in Australia, with 420 invitations issued between 24 November 2012 and 31 July 2014. It is only topped by Victoria with 733 invitations during the same period.

Footnotes

1Hon. Andrew Stoner MP, Deputy Premier of NSW, 'NSW Streamlines Significant Investor Visa', 27 August 2014.

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