2.5m 188b visa Australia

When 188 Visas Offers Both Residency and Profits

Investing $2.5m offers an investor the opportunity to invest into a compliant investment framework maintained by a regulated fund manager. The investor will be required to evidence previous investment and/or business experience to achieve the minimum 65 points required in the investor assessment.

Benefits for the Investor

  • Ability to live, work, open a business, study and retire
  • A high standard of living
  • World-class education and healthcare
  • Visa includes your spouse and children
  • Passive investment opportunities
  • Work, live, study and retire
  • A high standard of living
  • Permanent Residency after 3-years
  • No tax on worldwide income

The investor visa offers a direct pathway to permanent residence after three years for the investor and their family. A popular alternative is our scheme which provides all the benefits for A$1.5m.

Investment requirements

An approved Australian fund manager must hold the investment with:

  • An Australian Securities Commission Licence
  • Membership in the Australian Investment Council
  • Investor Director Portfolio Licence
  • Over A$ 100m under management
  • Experience managing complying investment frameworks

Investment requirements

An approved Australian fund manager must hold the investment with:

  • An Australian Securities Commission Licence
  • Membership in the Australian Investment Council
  • Investor Director Portfolio Licence
  • Over A$ 100m under management
  • Experience managing complying investment frameworks
Type of investment:

The A$2.5 million investment fund must comprise:

  • 20% in eligible Venture Capital and Private Growth Equity funds (VCPE) investing in start-up and small private companies (A$ 500,000)
  • 30% in eligible managed funds or Listed Investment Companies (LICs) that invest in emerging companies (A$ 750,000)
  • 50% in managed funds or LICs that invest in qualifying assets. Including Australian listed securities, eligible corporate bonds or notes, annuities and real property (A$ 1.25 million).
The source of funds

Before accepting direct foreign investments, the Australian Investment company must conduct the following checks:

  • Anti-money laundering checks
  • A Know Your Clients onboarding process
  • A Politically Exposed Person check

Compliant Invest Framework

On our how-to-invest page, we provided a comprehensive guide on how to invest for the 188b visa stream. An alternative to investing A$2.5m via a CIF is to invest the lesser A$1.5m in our tailored investment solution. It offers a lower-cost, no-risk, fixed-returns alternative.

Points Test criteria

The Australian authorities apply a formulaic points system to determine a potential investor’s eligibility. An investor must secure a minimum of 65 points in the test to be eligible to emigrate as an investor. Each state may elect to increase the minimum points threshold required based on the local demand for direct foreign investment.

Investor points table

1) Age:

The upper age limit is 55 years, except in cases where exceptional circumstances can be argued. In our experience, we have found State Governments will offer a certain degree of flexibility on the upper age limit where it can be argued successfully.

Age in Years

Points

18 - 24

20

25 - 32

30

33 - 39

25

40 - 44

20

44 - 54

15

55 and over

0

2) Qualifications:

Often our clients are entrepreneurs or finished their education some time ago.  Whatever the situation we offer guidance on how to secure the maximum possible points available.

Education

Points

Trade certificate, diploma or bachelor degree

5

A bachelor degree in business, science or technology

10

3) English language ability:

To prove an investor meets the Australian English language criteria they may be required to sit an IELTS test. Those investors educated in an English speaking country may be exempt from this test.

Standard of English

Points

Vocational

5

Proficient

10

4) Financial Assets:

While the 188 visa stream points table awards points for net asset values over A$1.25m the minimum investment required for the 188b visa is A$2.5m. Beyond the minimum required investment within a compliant investment framework.  Australia looks for potential further investments that may assist the economy.

Assets Net Value

Points

AUD 1.25m+

5

AUD 1.75m+

15

AUD 2.25m+

25

AUD 2.75m+

35

5) Business experience:

Either as an entrepreneur, significant shareholder or senior manager. In certain cases, previous business experience may offer additional opportunities, in emigration terms and potential investments. While points can be secured based on previous business experience, this is not a mandatory requirement under the 188b visa stream.

Experience

Points

From 4 to 7 years (Within the last 5-years)

5

Over 7 years (Within the last 8-years)

10

6) Investment experience:

A history of investing a minimum of A$250,000 is required. These investments must be held within a compliant investment framework. They may include various pension-related investments.

Experience

Points

Not less than 4 years

10

7 years +

15

Exemption from the points test

Those investing AUD$ 5m are exempt from the points test.

188 Visas by Investment Solutions

Each year, the Australian federal and state governments review the 188 visa programme to ensure it delivers the best possible outcomes for Australia. Where deemed necessary changes are introduced without advanced notice. State governments open and close the investor visa stream within their respective jurisdictions as deem necessary. We are pleased to report the 188 Business Inovation and investors streams are open and Australia is accepting new applications.