Significant Investor Visa

Journey of an SIV Investor

In 2012 when Australia introduced the Significant Investor Visa (SIV) migration program, many were skeptical it would provide the expected economic benefits.

In the reportImpact of the Significant Investor Visa program: A long-term proposition for Australia,” launched at the June 2019 Australia China Business Council Canberra Day, Deloitte Access Economics provides their assessment of the program to date. The conclusion is this group of high net work immigrants will have a tangible impact on the Australian economy.

Investment Migration around the world

Economic citizenship programs are not new. There are investment migration programs in nearly 100 countries including Canada, the US, UK, NZ, European Union and the Caribbean. These programs provide the host country access to foreign direct investment to potentially boost growth and employment.

For the wealthy, economic citizenship programs provide greater global mobility, family security and lifestyle, investment, tax and estate planning opportunities.  For Australia, our key attraction is our enviable lifestyle, stable political climate, investment opportunities, as well as children’s education.

Australia’s SIV program

Of all the visa categories in Australia, the SIV program only accounts for around 0.1% of visas granted. However, with the minimum complying investment of $5 million, this visa category has generated more than $10 billion of investments into Australia from the 2,022 temporary visa’s granted to June 2018.

Whilst key beneficiaries to date have been investment managers, the capital has enabled them to make further investments and has resulted in $90M into the venture capital and private equity (VCPE) sector under the updated complying investment framework.

Further, applicants have engaged business and professional services starting with migration advisors to accountants and tax advisors with some seeking advice in corporate finance and succession planning.

Additional Investment in Australia

Many of these investment migrants would like to invest more into Australia, but understandably they want to wait until permanent residency has been granted which can take up to 6 years. Whilst Australia has investment objectives for the program, these HNWI’s have their own interests and agendas. Many are interested in passive investment in residential and commercial real estate and fixed income generating high yields.

Some SIV applicants have already invested in businesses and sectors they know. This has included industries such as manufacturing, accommodation and food services as well as professional, scientific and technical services. One venture capitalist has invested an additional $10M across medical services, the Barangaroo casino and a winery in Adelaide which now exports to China.

However, it takes time to build business networks and to gain an understanding of Australia’s investment landscape, legal and taxation frameworks. Other impacts on the level of additional investments to date have been general uncertainty of the global economic environment and regulatory constraints including tighter capital controls out of China.

Where to from here?

The journey of the SIV investor is not over. These entrepreneurial individuals will not only start to make additional investments, but will play more of a role in our economy, sharing their skills and experiences in our local workforce and communities. Many have already undertaken philanthropic activities including volunteering and impact investing in areas such as the environment, youth, health, the arts and culture.

Australia is a country of immigrants and with our relatively small economy we need access to foreign capital. Many Australian businesses are seeking investment not only for expansion but to access new markets and distribution channels. Cultivating business networks both formally and informally are essential to facilitate trade and investment across borders. The SIV program has increased those international linkages, particularly with China, which has attracted the majority of SIV applicants, who is our largest trading partner.

For more detail you can view the Deloitte Private paper here.

Business networking & deal-making each Jan in Hong Kong

A great crowd assembled  for the AFF information briefing  on Tuesday 17th October to hear about the forthcoming AusNZ delegation to the Asian Financial Forum in Hong Kong, 14th to 19th January, 2018.
Luca de Leonardis, Invest HK

Luca de Leonardis, InvestHK kicked off the briefing at historic Hong Kong House in Sydney. He explained why Hong Kong is the Gateway for those looking to do business in China and how they can assist with business set up.

Head of Hong Kong Trade and Development Council (HKTDC) Bonnie Shek delivered the keynote presentation on the Asian Financial Forum (AFF) conference, now in it’s 11th Year. Hong Kong is a hub for international business and investment, and is the gateway to more than 5 million HNW individuals.

Bonnie Shek, HKTDC

Part of International Finance Week, last years event saw 100 global leaders, speaking to almost 3,000 business and finance delegates from 50 countries, plus 620 one-on-one business matching meetings at the AFF Deal Flow.

You can download the AFF presentation here and view the video here. 

Attend as part of the AusNZ mission

Those that have done business in China will be familiar with the term “guanxi” and the concept of “three cups of tea” of stranger to friend to part of the family.

Mission leader Stacey Martin, Founder of Expat Advisors Community, shared her AFF journey from first year overwhelm, second year focus, third year a clear proposition, fourth year holding expat and Significant Investor Visa events and fifth year running the mission.

Leveraging these learnings, this year there will be individual delegate consultations to ensure those that decide to come along will be well prepared. This includes networking tools, clear positioning on what they have to offer and who they would like to meet for the Delegate Booklet and social media profiles.

Following the Sunday evening welcome event and the two day AFF conference, delegates will have the opportunity to showcase their services at the migration and property seminars which are being promoted to local networks and businesses.

A day trip into Shenzhen to see the real China will be followed  by the Family Office Conference back in Hong Kong. There will also be an evening Junk cruise on Hong Kong Harbour.

You can view the current draft itinerary here.

Feedback from past delegates
Steve Newnham and Adam Goern from Farms and Finance.

The 2017 mission saw the trialing of Adam Goerns Farms and Finance platform to augment the AFF deal-flow matching . First time delegate Steve Newnham found it  a useful tool to represent a number of agriculture deals.

View the Farms and Finance video here.

Despite having been to Hong Kong around 50 times, Vincent Lim of Sumo Group still finds the AFF a great forum for gaining up to date knowledge and insights whilst catching up with business partners.

Drew Waters, past CEO of AustCham Hong Kong now back in Australia shared how the local Chamber is there to help Australians looking to do business in Hong Kong, with representative committees including Finance, Legal and Tax providing Thought Leadership and representation.

Steve Newnham, Drew Waters, Stacey Martin, Vincent Lim, Adam Goern.
Who Should Attend

Whether a first time trip and study tour to hear from leading experts on the opportunities in Asia, are ready to do businss and want to build relationships or have an extablised network, there is something for everyone wanting to benefit from the growth in Asia.

Delegates will include services providers across finance, wealth management, legal, accounting, migration and property. Also business and project owners, particularly Agriculture, seeking strategic investment partners at the AFF Deal Flow.

One of the key benefits of attending with a group of like-minded business people is the comradery among the delegates who can position each others businesses.

Supporters

We are delighted to have endorsement of the mission from Austrade, Australian Services Roundtable, Pacific Economic Basin Council and AustCham in Hong Kong and Shenzhen. Plus of course HKTDC, Invest HK, HKABA and HKNZBA.

Sponsorship packages are available for those considering bringing two or more delegates and we expect to soon announce from banking, funds management and professional services.

For more information

Download the AFF Mission Flyer 2018 or go to the  website where you will find more information and regular updates. If you are interested in finding out if coming to Hong Kong, third week of January, will suit your business growth plans contact Stacey Martin at  stacey.martin@expatadvisorscommunity.com.au or call +61 413 127 677.