New regulations announced for SIV and PIV – effective 1 July

Group of Multiethnic People Discussing Global Issues

The new SIV and PIV regulations were released on 30 June, 2015. Complying investments are in line with the framework previously outlined and there is now further clarity on the Premium Investor Visa category.

Austrade will also become a nominating entity for Significant Investor visas (State and Territory Governments are currently the only entities able to nominate) and the sole nominating entity for the Premium Investor visa.

One of the integrity measures includes SIV Applicants must reside in the state for which they have been nominated, while PIV Applicants have the flexibility to reside anywhere in Australia.

Below are some key insights and you can also check out Austrade’s Q&A here.

Complying Significant Investments

The four year investment into at least $1.5M emerging companies and up to $3.0M into balancing items including Australian corporate bonds, shares and property are to be made upon granting of the provisional visa. These can be via managed funds or listed investment companies which can be held through a fund of fund structure or IDPS (“wrap” account).

In relation to the minimum of $500,000 into venture capital, this can be held in escrow for up to 12 months with an approved deposit taking institution, however the 4 year term will only commence after funds are invested.

Complying Premium Investments

The PIV provides a pathway to permanent residency after 12 months through investment of $15M. It will only be available to a small number of individuals at the invitation of the Australian Government who will be highly selective with potential recipients to be nominated by Austrade on approved criteria based on entrepreneurial skill or talent and ongoing benefit to Australia.

From an investment perspective, PIV Applicants can in addition to managed investments, also by direct assets including qualifying Australian businesses. Alternatively they can make a philanthropic contribution approved by a State or Territory Government agency for part or all of the $15M,  for the 12 month pathway to permanent residency.

Complying Investment Certificate

The new 1413d form has been released. In addition, applicants are encouraged to seek their own financial and legal advice.

Other considerations

Complying investments are not to be used for security or collateral for a loan for the duration of the provisional visa. Also, they are to be  new and fresh investments, not existing investments in Australia.

Currently 91% of SIV applicants are Chinese nationals. The government is looking to implement an engagement strategy to enhance the promotion of the investor visa programme globally to expand sources of foreign investment into Australia.

If you would like to know more about the new SIV and PIV regulations or obtain information on complying investments, please Contact Us.