On November 24th 2012, the Department of Immigration and Citizenship introduced the “Significant Investor Visa“ (subclass 188 & 888). This is great news for wealthy individuals around the world who would like to move to Australia.
In essence the new visa allows wealthy individuals to bypass skilled migration requirements, such as English language proficiency. There are also no upper age limits placed on applicants and the residence requirement is only 40 days per year. The provision is that the applicant invests at least AU$5 million into complying investments. You can include family members in your application when you apply. You can also add dependent children to your application at any time before the government makes a decision on the application.
There is flexibility in the holding structure of the investments; the investments can be structured so that it is held in the individuals name, through a company or through a trust. Perhaps most importantly there is also flexibility in the choice of investments; it can be government bonds, certain managed funds and also direct investment into Australian proprietary companies.
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).
Further details can be founds on the Department of Home Affairs website.
Cornish Wealth Management welcomes the opportunity to team up with Migration Agents and can offer in-depth advice on the available complying investment options and also the most suitable holding structure for the investments.