The change in complying investments to the mandated $500,000 Venture Capital (VC) and $1.5M allocation to small company shares had initially slowed the rate of applications under the new Significant Investor Visa regime. However, there are currently almost 200 invitations still being processed which alone would result in almost $100M into the VC sector and $900M into other complying managed funds.
The Department of Immigration and Border Protection (DIBP) continues to work through the backlog of applications under the old rules as well as processing applications under the new investment regime.
Figures recently released show that in the month of July 2016 there were 41 SIV1’s and 8 SIV2’s granted, bringing the overall total under the program to 1,413 temporary resident visas of which 24 are under the new post 1 July 2015 regime, summarised below:
SIV2 from 1 July 2015
|Expressions of Interest||328|
|Invitations to apply from state government nomination||257|
|Primary applications lodged||213|
|Primary visas granted||24|
More than 60% were sponsored by the Victorian government which has been the ongoing trend, versus 30% for NSW. while 3 applications were via Austrade. More than 90% of applicants continue to be attracted from mainland China, 3% from Hong Kong and the balance from Malaysia, Vietnam and South Africa.
According to David Chin from BasisPoint, convenor of three annual SIV Conferences, the DIBP likely only has resources to process no more than 50 applications per month. There were 41 SIV1’s granted in July, further reducing the 1,500 backlog from applications made prior to April 2015.
Greg McKeon from Queensland Investment & Trade recently advised they had scrapped the additional requirement for a 50% local economic benefit. This had been difficult for the fund management industry to implement with complying funds required to have a minimum of $100M assets under management plus the need to consider all investors not just SIV applicants.
Check out the QLD “More Than a City” promotional video of the Gold Coast here.
Meanwhile, the Productivity Commission report that was sent to Government in April has just bee released to the public. Recall it recommends the government should abolish the SIV program. Treasurer Scott Morrison is expected to table in parliament his recommendations for the immigration program.
Expat Advisors Community recently attended the China International Fair for Investment and Trade (CIFIT) promoting our SIV Consulting Services. You can download the dual language SIV Consulting Services flyer here, or contact us for more information.