Australian Significant Investor Visas explored
The benefits of investing in Australia
Investor visas are the fastest growing area of Australian emigration as the government recognise the benefits inward foreign investment offers their economy.
The Significant Investor Visa (SIV)
This is a Federal Government initiative designed to attract high net worth individuals from other countries who wish to seek permanent residency in Australia. SIV is a stream within the Australian Government’s Business Innovation and Investment (Provisional) (Subclass 188) visa and the Business Innovation and Investment (Permanent) (Subclass 888) visa.
The Australian Government introduced the SIV in 2012 as a way to provide a boost to the economy and drive innovation through competing effectively for high net worth individuals seeking investment migration.
SIV holders are required to invest at least $5 million into complying investments for a minimum of four years before being eligible to apply for a permanent visa.
The SIV complying investment rules were changed in 2015 by the Australian Government and from 1 July 2015, SIV applicants are required to invest at least $5 million in complying investments, which must include:
- At least A$500,000 in eligible Australian venture capital or growth private equity (VCPE) fund(s) investing in start-up and small private companies;
- At least A$1,500,000 in an eligible managed fund that invests in emerging companies; and
- A ‘balancing investment’ of up to A$3,000,000 in managed funds that invest in a combination of eligible assets that include Australian listed securities, eligible corporate bonds or notes, annuities and real property (subject to the 10% limit on residential real estate).
Venture Capital Investment
The SIV complying investment rules require a mandatory minimum investment of at least 10% ($500,000) into venture capital or a private equity fund.
Sterling Migration provides our clients access to unconditionally registered Australian domiciled Venture Capital Limited Partnership (VCLP) that were designed specifically for SIV investors.
The VC Funds targets Australian-based private companies (unlisted) across a range of industries, including, but not limited to agriculture, technology, food, health, education and tourism.
Small Caps Fund
The SIV complying investment rules require a mandatory minimum investment of at least 30% ($1.5 million) in a managed fund that invests in Australian Emerging Companies (“Small Caps”).
Investments must focus on ASX-listed companies that have a market capitalisation of less than $500 million, however, a maximum of 20% can be invested in Australian unlisted companies.
Sterling Migration provides our clients access to Small Caps Funds designed specifically for SIV investors.
Sterling Migration provides access to a range of investment options for the balancing component of the SIV complying investment framework (60% or $3 million), including commercial property, corporate bonds and listed equities.
While we are Australian emigration experts, we are not regulated by the Australian Investment Commission nor do we attempt to make such a claim.
We will not provide financial advice or investment advice. However, all our partners and affiliates we work with to complete SIV cases are qualified with extensive experience working on SIV cases for many years.
Offering guidance and support on the three mandatory investment classes required.