AVCAL Focus on SIV 2 June 2015
Austrade: Significant and Premium Investor Visa Programmes Investor Visa Unit Investment Division May 2015
What are the Significant and Premium Investor Visas? • The Significant Investor Visa (SIV): ‒ requires a minimum investment of A$5 million into complying investments – an application for permanent residency may be made after holding the investment and provisional visa for four years – primary visa holder must be resident in Australia for 40 days every year over the four years • The Premium Investor Visa (PIV) is a new visa stream which: – requires a minimum investment of A$15 million into complying investments – an application for permanent residency may be made after holding the investment and provisional visa for 12 months – primary visa holder has no residency requirement Australia Unlimited 2
Austrade’s role – developing the SIV/PIV Complying Investment Framework (CIF) • Extensive consultation with interested stakeholders, including: – public consideration of complying investment design options; and, – two rounds of public written submissions – approximately 170 submissions received • Austrade considered advice from hundreds of stakeholders and experts to determine scope and quantums on Venture Capital and Growth Private Equity Funds (VCPE) and funds investing in Emerging Companies • Austrade has an ongoing role in assessing CIF design to ensure the programme achieves its objectives over time Australia Unlimited 3
Why enhance the SIV programme? Minister Robb’s media release: • the previous SIV framework had set the bar too low, with investment largely directed into passive investments such as government bonds and residential real estate schemes – areas that already attract large capital flows. • Direct investment in residential real estate has never been a complying investment for SIV and this will not change. – Indirect investment in residential real estate through managed funds will now be restricted. – 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. Australia Unlimited 4
Key points – Significant Investor Visa (SIV) • From 1 July 2015, SIV applicants will be required to invest at least $5 million in complying investments, which must now include: – At least $500,000 in eligible Australian venture capital or growth private equity fund(s) investing in start-up and small private companies; – At least $1.5 million in eligible managed fund(s) or Listed Investment Companies (LICs); and, – A ‘balancing investment of up to $3 million in managed fund(s) or LICs that invest in a combination of eligible assets Australia Unlimited 5
Key points – Premium Investor Visa (PIV) • The PIV will be a new visa stream focussing on attracting a small number of highly talented and entrepreneurial individuals to Australia who can translate those skills and talents into other areas which deliver a long-term economic benefit • Requires: – a minimum of $15 million to invest: – an application for permanent residency may be made after holding the investment and provisional visa for 12 months – primary visa holder has no residency requirement • Available by invitation of the Australian Government only • Will be rolled out over the coming year Australia Unlimited 6
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