Most Read Contributor in Australia, September 2016
As our readers will no doubt be aware, new applications for the
Significant Investor Visa (SIV) have been
suspended since 24 April 2015, for the purpose of preparing new
framework for the SIV in anticipation of its reintroduction on 1
Last Friday (15 May 2015), Andrew Robb, Minister for Trade and
Investment, and Michaela Cash, Assistant Minister for Immigration
and Border Protection, made a joint
announcement of the Australian Government's much
anticipated new investment framework for the Significant Investor
Visa (SIV). The announcement also provided some
further information regarding the introduction of the new Premium
Investor Visa (PIV).
The new arrangements are part of the Australian Government's
Industry Innovation and Competitiveness Agenda to facilitate the
flow of capital into innovative start-ups and emerging Australian
companies. The agenda is to be achieved by stopping SIV applicants
from investing the required $5 million into passive investments,
such as government bonds.
The new framework for the SIV will require at least a $5 million
investment, which must comprise:
At least $500,000 1 into eligible Australian venture
capital or growth private equity fund(s) (VCPE)
investing in start-ups and small private companies;
At least $1.5 million into eligible managed fund(s) or Listed
Investment Companies (LICs) that predominately
invest in emerging companies (i.e. market capitalisation below $500
million) listed on the Australian Securities Exchange
A 'balancing investment' (the amount will depend on how
much was invested in the above mandatory elements) in managed funds
or LICs investing in a combination of other eligible investments,
including other ASX-listed companies (i.e. companies with market
capitalisations above $500 million), corporate bonds or notes,
annuities and (with limitations) residential real estate.
The new framework also prohibits 'loan back'
arrangements. Accordingly, new visa applicants will no longer be
allowed to use their investments as collateral for borrowings.
The announcement confirmed that the PIV will provide a
fast-tracked, 12-month pathway to Australian permanent residency
for talented entrepreneurs and innovators who can invest at least
$15 million into eligible investments. The PIV will also allow a
wider range of eligible investments than the SIV, including direct
investments in a range of companies and financial products.
The new framework for the SIV and the PIV will come into effect
on 1 July 2015.
1The Australian Government intends to increase
this amount to $1 million within the next two years, subject to the
initial response to the scheme.
This publication does not deal with every important topic or
change in law and is not intended to be relied upon as a substitute
for legal or other advice that may be relevant to the reader's
specific circumstances. If you have found this publication of
interest and would like to know more or wish to obtain legal advice
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