The new framework for the Significant Investor (SIV) and Premium
Investor (PIV) programmes has now been implemented and is effective
from 1 July 2015. The SIV programme provides the opportunity for
foreign persons to obtain an Australian visa by investing at least
AUD$5 million over four years in complying Australian
Norton Rose Fulbright is a leading commercial law firm with
experience advising local and foreign investors on investment into
Australian real estate, venture capital, private equity,
agriculture and other investment opportunities, as well as
assisting fund managers in the development of a range of investment
products and structures.
The firm has a strong track record as a strategic legal advisor
to fund managers involved in the development of investment products
offered to migrant investors. Reflecting the firm's reputation,
Norton Rose Fulbright has been at the forefront of consultations
with government and industry stakeholders leading to the
development of the new SIV regime. The firm is advising fund
managers on modifications to their existing products to maintain
compliance, as well as assisting with the launch of a range of
funds, including venture funds and emerging/small companies
Mandated Australian portfolio for SIV migrant investor
Migrant investor applicants must invest a minimum A$5 million in
the following investment products:
Limited Partnership (VCLP) or Early Stage Venture Capital Limited
Applicant monies are taken upfront in a specified vehicle and
held in an escrow arrangement, or as security for a guarantee
issued by an Australian ADI.
Investments by a fund have commenced within four years from the
grant of the provisional visa.
Sale proceeds received before the provisional visa ends are to
be reinvested in complying funds.
At least A$1.5
managed investment scheme or listed investment company (LIC), that
invests in emerging companies
Investments in ASX listed securities of companies that have a
market capitalisation of less than A$500 million.
Fund may hold cash with Australian ADIs and other cash like
instruments (subject to a 20% cap).
Derivatives may be used for risk management and non-speculative
At any time, the proportion of the fund's net assets held in
entities whose market capitalisation has grown above A$500 million,
must not exceed 30%.
Fund must be operated or managed by an AFS licensed fund manager
with a minimum A$100 million funds under management in
Other emerging company investments can be acquired by the fund,
subject to fund limits:
Unquoted Australian securities are to be no more than 20% of
the fund's net assets immediately after the time of
Securities quoted on a securities exchange operated in a
foreign country (subject to a 10% limit).
Must maintain a minimum of 20 investee companies from three
months post the fund's inception date.
No further purchase can be made to any individual asset that
exceeds 10% of the fund's net assets.
Any remaining portion of the A$5 million may be invested in one
or more 'balancing' investments:
Up to A$3
managed investment scheme or LIC, that primarily invests in a
permitted asset class
Permitted asset classes are:
Companies, A-REITs, infrastructure trusts including their
ordinary equity, preferred equity, convertible bonds or corporate
issued floating rate notes listed on an ASX.
Corporate bonds or notes issued by an ASX entity (or wholly
owned subsidiary of the Australian listed entity) or investment
grade rated Australian corporate bonds or notes rated by an AFS
licensed debt rating agency.
Deferred annuities issued by Australian registered life
companies. Cannot commence paybacks during the provisional visa
Retail, office, industrial or hotel real property in
Use of futures, swaps or other derivatives must be used for
risk management only.
Cash products to be less than 20% of fund's net
Operated by a large licensed fund manager (as above).
Fast track approach for premium investors under the PIV
The Premium Investor Visa programme (PIV) framework is targeting
talented entrepreneurs and innovators and offers a 12 month pathway
to permanent residency. A migrant must invest A$15 million and will
access the regime upon invitation of the Australian Government.
Austrade will make nominations on approved criteria based on
entrepreneurial skill or talent and ongoing benefit to Australia,
and subject to character and integrity checks.
A migrant needs to make an investment by direct investment or
investment in an Australian managed fund(s) that invests in one of
more of the following:
ASX listed assets;
Australia government or semi-government bonds or notes;
Corporate bonds or notes issued by an ASX listed entity (or
wholly owned subsidiary of the Australian listed entity) or
investment grade rated Australian corporate bonds or notes rated by
an AFC licensed debt rating agency;
Australian proprietary listed companies;
Real property in Australia excluding residential property;
Deferred annuities issued by Australia registered life
Approved philanthropic donation.
A philanthropic contribution or a combined investment and a
philanthropic contribution by an investor is considered a complying
premium investment, if all of the requirements of the Regulations
are met. As the term 'philanthropic contribution' is not
defined, it gives the government the flexibility to determine what
constitutes such a contribution for the purpose of the Migration
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Recent amendments to the Migration Act and regulations, along with the imminent commencement of the new federal safety net under the Fair Work Act, highlight a number of issues for consideration by employers in documenting terms and conditions of employment for foreign nationals engaged to work in Australia under Subclass 457- Business (Long Stay) visas.
A quick refresher of the rights and obligations for employers (sponsors) when ending a 457 visa holder's employment.
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