Live in Victoria – Significant Investor Update
This update provides information about the Victorian Government’s activities to support and attract investor migrants to Victoria through the Business Innovation and Investment Program’s Significant Investor Visa stream.
Significant Investor applications summary
The final program outcomes of the Significant Investor Visa under the previous complying investment framework, which closed on 22 April, are as follows:
From the commencement of the SIV program on 24 November 2012 to 22 April 2015, Victoria has nominated 1,745 investors, whose combined intended investment value is estimated to be in excess of $8.72 billion.
More than 90 per cent of these funds have been invested in government bonds and managed funds.
As at 31 March 2015, the Commonwealth Government had granted 751 visas nationally, of which 428 (57%) were granted to Victorian nominated investors, 245 (33%) to NSW nominated investors, and the remainder to other jurisdictions.
Commonwealth reforms of investor visas
The Commonwealth Government has announced the new complying investment framework for the Significant Investor Visa (SIV) and Premium Investor Visa (PIV) programme. The Government intends that the framework will be implemented from 1 July 2015.
Austrade will also become a nominator for the SIV, alongside State and Territory Governments, and will be the sole nominator for the PIV.
Under the new framework, SIV applicants will be required to invest at least $5 million over four years in complying investments which, under the new rules, must include:
At least $500,000 in eligible Australian venture capital or growth private equity fund(s) investing in start-up and small private companies. The Government expects to increase this to $1 million for new applications within two years as the market responds;
At least $1.5 million in an eligible managed fund(s) or Listed Investment Companies (LICs) that invest in emerging companies listed on the Australian Securities Exchange (ASX); and
A ‘balancing investment’ of up to $3 million in managed fund(s) or LICs that invest in a combination of eligible assets that include other ASX listed companies, eligible corporate bonds or notes, annuities and real property (subject to the 10% limit on residential real estate).
Direct investment in real estate has never been a complying investment for SIV and this will not change under the new arrangements. Indirect investment in residential real estate through managed funds will also now be limited. Importantly, a SIV holder can still independently invest in residential real estate so long as it complies with foreign investment rules, but this would not count as a complying investment to qualify for a visa.
Premium Investor Visa
The Commonwealth Government intends to introduce a new Premium Investor Visa from 1 July 2015 targeting talented entrepreneurs and innovators. The PIV will offer an accelerated 12 month pathway to permanent residency, for those meeting a $15 million threshold.
It is understood that the PIV will be available at the invitation of the Australian Government, with potential recipients to be nominated by Austrade. This programme will be rolled out over the next year, focussing on attracting a small number of highly talented and entrepreneurial individuals. States and Territories will play an important role in helping to identify potential applicants.
Source: Victorian Government
