Both the $2.5m and $5m investor visas require a passive investment to be held within a Complying Investment Framework (CIF) as set out by the Australian Department of Home Affairs.

We explore how those investment are expected to be allocated with the CIF. Tt is worth noting various states may require a commitment that investments are made within their local economy, prior to offering an invitation to emigrate.

The CIF breakdown of investments:

• 20% venture capital and Private Growth Equity funds (VCPE), up from a previous 10%;
• 30% funds investing in emerging companies; and
• 50% in balancing investments, down from a previous 60%.

Compliant Investment Funds are required to produce independent audit reports annually to show continued compliance with the new CIF requirements.

Financial risk:

Requiring 50% of a CIF to be in a Venture Capital fund and emerging companies may offer the potential of impressive rewards. However, there is a real financial risk involved in these investments.

While all investors hope for the best. These potential hidden costs of emigrating to Australia using the CIF model must be appreciated.

Alternative Investment framework

Our $1.5m option enables an investor to purchase shares in a compliant business and invest at least $1m for a fixed return of 7% per annum. The limited exposure to risk and the ability to forecast the total cost of emigration make this an attractive option for many investors.