Are you a talented business owner or investor who is ready to invest in Australia? An Investor visa could be your pathway to carry out business and investment activity in Australia.
An investor visa Australia, which is part of the Business Innovation and Investment Program (BIIP), also provides a potential pathway to permanent residence for applicants who are willing to invest a prescribed minimum amount of funds in certain types of investments over the long term in Australia.
The Subclass 188 Business Innovation and Investment (Provisional) visa enables you to own and manage a business, conduct business and investment activity, or undertake an entrepreneurial activity in Australia. It consists of four visa streams, namely, a Business Innovation, Investor, Significant Investor and Entrepreneur stream. Each visa stream has a visa term of five years, and provides a pathway to permanent residence after three years.
Business Innovation and Significant Investor visa holders also have the option to extend their provisional visa if they meet specified requirements.
Each visa stream has been designed for a specific purpose, and is subject to its own prescribed requirements. You must select one stream only when applying for a subclass 188 visa.
For each of the above visa options, eligible family members of the primary applicant may apply as secondary applicants. To qualify, they must meet specified requirements, including health and character criteria.
If you are looking to carry out business and/or investment activity in Australia, then you may like to consider a subclass 188 visa Australia under either the Investor or Significant investor stream.
Investor Stream Visa
A subclass 188 visa under the Investor stream is a temporary residence visa that is available to eligible applicants who are willing to invest at least $2,500,000 in a complying significant investment for the duration of the visa term, and who intend to maintain that investment after it has matured.
To be eligible for an investor visa Australia, you must demonstrate that you have high level management skills, experience and an overall successful record in relation to prescribed types of investments or business activities. You must also pass a points test, be nominated by a State or Territory government agency, and have a genuine intention to live in your nominating jurisdiction for at least two years from visa grant. Further requirements, including an age limit (exceptions apply) and assets test, also apply. The term of the subclass 188 Investor stream visa is 5 years.
You may then later qualify for permanent residence via a Subclass 888 Business Innovation and Investment (Permanent) visa under the Investor stream after holding the subclass 188 investor stream visa for three years.
To be eligible for the permanent residence investor visa Australia, you must have held a complying significant investment for the whole of the period during which you held the Subclass 188 investor stream visa, and you must have resided in Australia as a subclass 188 visa holder for at least two out of the three years immediately before lodging your permanent residence visa application. Note that COVID-19 concessions apply in certain circumstances. Additional requirements also apply.
Significant Investor Stream Visa
Alternatively, if you are willing to invest at least $5,000,000 in a complying significant investment for the duration of the visa term, and either you or your spouse or de facto partner genuinely intends to reside in your nominating state or territory, the Significant Investor stream is a potential option to consider. Under this visa stream, you have the option to apply to extend your visa for an additional 2 years (which you can apply for twice, meaning a potential total visa term of 9 years). Note the extension period will differ if you were invited to apply for this visa before 1 July 2021).
There is no age limit or points test under this visa stream, however you must be nominated by a State or Territory government agency, or Austrade. Further requirements also apply. The term of the subclass 188 visa under the Significant Investor stream is five years.
The subclass 188 significant investor stream visa also provides a pathway to permanent residence via the Subclass 888 visa, after holding the subclass 188 significant investor stream visa for three years. To qualify, either you or your spouse or de facto partner (as a secondary applicant) must meet a residence requirement in Australia, and you must have held a complying significant investment for the whole of the period during which you held the subclass 188 visa. Note that COVID-19 concessions apply in certain circumstances. Additional requirements also apply.
Apply For An Invitation
The subclass 188 visa works on an invitation basis, which means that you cannot simply apply for the visa. The first step in the application process is to lodge an Expression of Interest (EOI) with the Department of Home Affairs (the Department) to express your interest in applying for the subclass 188 visa Australia. Only upon receipt of an invitation from the Department can you then proceed to apply for the visa (within 60 days).
Nomination Requirements
For each of the visa streams noted above, both for the temporary subclass 188 visa and the permanent subclass 888 visa, in addition to Immigration requirements outlined above, you must also satisfy nomination criteria as set by the State or Territory Government from whom you seek to receive nomination approval. This criteria will vary across each jurisdiction and is set independently by each authority. The nomination application must be lodged with the relevant State or Territory Government authority at the same time as you submit your EOI with Immigration. Be aware that you must also agree to abide by specified obligations imposed by your nominating state or territory government after the visa has been granted.
In this article, we focus on the key aspects to be aware of if you are considering applying for a subclass 188 visa Australia under the investor stream or significant investor stream, by taking a closer look at the main features, Australia investor visa requirements, costs and how to apply.
Before we begin our discussion, it is important to point out that the BIIP has undergone significant changes as of 1 July 2021. The disussion that follows is applicable if you were invited to apply for this visa on or after 1 July 2021. Note that different rules apply before this date.
Update On Business Visa Nomination By Skilled And Business Migration SA
If you are considering applying for nomination approval for a subclass 188 investor visa in South Australia, please note that Skilled and Business Migration SA has provided an update on its Business & Investment Program for the 2021-22 year.
It has announced the following:
Two steps from the application process used in the previous 2020-21 program year have been removed.
These changes mean that the following requirements no longer apply:
- exploratory visit to South Australia; and
- submission of an ‘Intention To Apply’ (ITA) form.
State nomination applications for the Subclass 188 visa will also be assessed in four quarterly periods during the 2021-22 program year.
Indicative dates are as follows:
- Round 1 Assessments: 2 August 2021 – 24 September 2021
- Round 2 Assessments: 25 October 2021 – 17 December 2021
- Round 3 Assessments: 31 January 2022 – 25 March 2022
- Round 4 Assessments: 2 May 2022 – 24 June 2022
Applications for state nomination for the Subclass 188 Business Innovation, Investor & Significant Investor streams are now open.
Applications for the Subclass 188 Entrepreneur stream will open in August, with a further announcement to be made.
Further information is available from Skilled and Business Migration SA in its Business and Investment Program 2021/22 Update.
Investor Stream
Main Features
The subclass 188 investor stream visa Australia enables you to carry out business and investment activity in Australia. The visa term is five years, commecing from the date of grant.
It is a multiple entry visa, meaning that you can leave and re-enter Australia as many times as you like whilst the visa is valid.
You may later qualify for a permanent BIIP visa under the investor stream if prescribed Australia investor visa requirements are met. You will need to hold the subclass 188 visa for a minimum period of three years before you are eligible to apply for the permanent residence business visa (note that COVID-19 concessions apply in certain circumstances).
Eligible family members can accompany you to Australia as dependent visa holders, subject to meeting prescribed Australia investor visa requirements.
As an investor stream visa Australia holder, you must hold complying significant investments continuously for the whole of the subclass 188 visa term (i.e. continuously).
You must also commit to continuing to maintain your investment in Australia after it has matured. You must also have a genuine intention to reside for at least two years in the State or Territory in which your nominating State or Territory government agency is located.
Key Requirements
Nomination
You must be nominated by an Australian State or Territory government agency before being invited to apply for the subclass 188 investor stream visa Australia.
Be Invited To Apply
You must be invited, in writing, by the Minister to apply for a subclass 188 visa in the Investor stream.
Upon receipt of an invitation, you must apply for the visa within 60 days.
Age
To qualify for a business visa under the investor stream, you must be aged under 55 at the time you receive an invitation to apply for the visa. There are exceptions in certain circumstances, namely, if you are proposing to establish or participate in a business or investment activity that your nominating State or Territory government agency has determined to be of exceptional economic benefit to the relevant State or Territory.
Points Test
To qualify for the subclass 188 investor stream visa Australia, you must pass a business innovation and investment points test, which requires achieving at least 65 points. The points test comprises a series of attributes, and a sliding scale of points are awarded to each. The relevant categories that make up the points test are outlined below:
- Age;
- English language proficiency;
- Educational qualifications;
- Investor experience;
- Financial assets; and
- Business turnover.
You can calculate your pass mark result by completing our business visa assessment.
Experience
Successful Record Of Eligible Investment Activity Or Qualifying Business Activity
To be eligible for the investor visa under the investor stream, you must demonstrate that you have, overall had a successful record of eligible investment activity or qualifying business activity. You must also have had at least three years experience of direct involvement in managing one or more qualifying business or eligible investments, and have demonstrated a high level of management skill in relation to the eligible investment or qualifying business activity.
For the purposes of meeting this requirement, qualifying business and eligible investments are specifically defined terms in the migration provisions.
Qualifying Business
A qualifying business is defined as an enterprise which:
- is operated for the purpose of making profit through the provision of goods, services or goods and services to the public (with the exception of rental property); and
- is not operated primarily or substantially for the purpose of speculative or passive investment.
Eligible Investment
An eligible investment is defined as one which is owned for the purpose of producing a return in the form of income or capital gain and is not for personal use. It comprises an ownership interest in a business, cash on deposit, stocks or bonds, real estate and gold or silver bullion.
Management Of Eligible Investments Or Qualifying Business
A further visa grant requirement stipulates that you must also demonstrate that you have maintained direct involvement in managing eligible investments owned by you and/or your spouse or de facto partner, for at least one of the five financial years immediately before the time of invitation to apply for the visa, with the total net value of the eligible investments being at least $2,500,000.
Alternatively, you must demonstrate that you have maintained direct involvement in managing a qualifying business owned by you and/or your spouse or de facto partner, for at least one of the five financial years immediately before the time of invitation to apply for the visa. The minimum ownership interest of you and/or your spouse or de facto partner in the qualifying business must be at least 10% of the total value of the business.
Assets Test
In the two financial years immediately before the time of invitation to apply for the visa, the business and personal assets of you and/or your spouse or de facto partner, must have a net value of at least $2,500,000.
The value of net assets may include, but are not limited to, eligible investment assets (as discussed above in this article).
Complying Significant Investment
To qualify for visa grant under the investor stream, you must have made a complying significant investment of at least $2,500,000, and have a genuine intention to hold the complying significant investment for the whole of the visa period.
What Is A Complying Significant Investment Under The Investor Stream?
You must make a complying significant investment of at least $2,500,000 on or after the time of application. You must hold complying significant investments continuously for the whole of the subclass 188 visa period.
The investment must be made in the following proportions:
- at least $500,000 (20%) must be invested in venture capital;
- at least $750,000 (30%) must be invested in emerging businesses;
- a balancing investment of up to $1,250,000 (50%).
Managed funds can invest in a range of assets, including companies listed on the Australian stock exchange, Australian corporate bonds or notes, annuities and commercial real estate.
Drect investment in residential real estate is not permitted for this purpose. Indirect investment in residential property through managed funds is accepted.
The investments must not be used as security or collateral for a loan.
Note that you can switch between complying significant investments in prescribed cirumstances.
How Can The Complying Significant Investment Be Funded?
The funds deposited in the designated investment must have been generated through a qualifying business or eligible investment activity undertaken by you, as the primary applicant, and/or your spouse or de facto partner. This can include personal assets, provided those assets were acquired through funds accumulated from these business or investment activities. The assets must also have been owned (not borrowed).
Business And Personal Assets
Your business and personal assets, those of your spouse or de facto partner, or assets that you own together must be lawfully acquired and available for transfer to Australia within two years after the grant of the Subclass 188 visa.
Commitment
You must genuinely have a realistic commitment to continue to maintain business or investment activity in Australia after the complying significant investment matures.
You must also have a genuine intention to reside for at least two years in the State or Territory in which the nominating State or Territory government agency is located.
Other Requirements
Not Have A History Of Involvement In Unacceptable Activities
You and your spouse or de facto partner must not have a history of involvement in business or investment activities that are of a nature that is not generally acceptable in Australia.
Current Or Last Substantive Visa Held
If, at the time of application:
- you hold a Subclass 491 Skilled Work Regional (Provisional)) visa, or a Subclass 494 Skilled Employer Sponsored Regional (Provisional) visa; or
- the last substantive visa that you held was a Subclass 491 or 494 visa;
then you must have held that visa for at least 3 years at the time of application.
Further requirements for visa grant include health and character criteria, owing no debts to the Australian Government, and having a good immigration record.
What Is The Cost To Apply For An Investor Visa?
The Visa Application Charge (VAC) for the investor stream comprises of two instalments, as follows:
First Instalment
The first insalment, which is payable at time of application lodgement, is $6,085 for the primary applicant.
The amount payable for a secondary applicant who is aged18 and over is $3,045. The VAC is $1,520 for an additonal applicant aged under 18.
Second Instalment
The second instalment is an additional fee that is payable for each applicant who is aged over 18 and does not meet a Functional English language requirement.
The amount payable is $9,795 for the primary applicant, and $4,890 for a secondary applicant.
This must be paid before grant of the visa.
Note that other costs may also apply, in addition to the visa lodgement fee, as part of the subclass 188 investor visa application. This can include medical testing, police clearances and document translation. The amount payable will depend on your personal situation.
How To Apply For An Investor Visa
You can apply for the subclass 188 investor visa either onshore or from outside Australia.
Lodge your application online through ImmiAccount.
The visa may be granted if you are in Australia or offshore.
Significant Investor Stream
To qualify for grant of a business visa under the significant investor stream, you do not need to pass a points test or meet an age requirement (as you do under the investor stream discussed above). For this visa stream, the key requirement for visa grant is to make a prescribed complying significant investment for a minimum specified term.
Main Features
The significant investor stream of the subclass 188 visa enables you to carry out investment activity in Australia. The visa term is five years, commencing from the date of grant.
It is a multiple entry visa, meaning that you can leave and re-enter Australia as many times as you like whilst the visa is valid.
You may later qualify for a permanent BIIP visa under the significant investor stream if prescribed requirements are met. You will need to hold the subclass 188 visa for a minimum period of three years before you are eligible to apply for the permanent residence business visa (note that COVID-19 concessions apply in certain circumstances).
You can apply up to two times for a new subclass 188 in the Significant Investor Extension stream, which will give you more time in Australia, with two additional years for each Significant Investor Extension. This means a total period in Australia of up to nine years after the date of grant of the original subclass 188 significant investor visa.
Eligible family members can accompany you to Australia as dependent visa holders.
As a subclass 188 visa holder, you must hold complying significant investments continuously for the whole of the subclass 188 visa term.
If you are nominated by a State or Territory government agency, either you or your spouse or de facto partner must have a genuine intention to reside in the State or Territory in which your nominating State or Territory government agency is located.
Key Requirements
Nomination
You must be nominated by an Australian State or Territory government agency, or Austrade, before being invited to apply for the subclass 188 visa.
Be Invited To Apply
You must be invited, in writing, by the Minister to apply for a subclass 188 visa in the Significant Investor stream.
Upon receipt of an invitation, you must apply for the visa within 60 days.
Complying Significant Investment
Under this visa stream, you must have made, on or after the time of application, a complying significant investment of at least $5,000,000.
You must have a genuine intention to hold the complying significant investment for the whole of the visa period.
Note that a complying significant investment may be based on one or more investments.
What Is A Complying Significant Investment Under The Significant Investor Stream?
The complying significant investment of at least $5,000,000 must be invested in the following proportions:
- at least $1,000,000 (20%) in venture capital;
- at least $1,500,000 (30%) in emerging businesses;
- a balancing investment of up to $2,500,000 (50%).
Managed funds can invest in a range of assets, including companies listed on the Australian stock exchange, Australian corporate bonds or notes, annuities and commercial real estate.
Direct investment in residential real estate is not permitted. Indirect investment in residential property through managed funds is accepted for this purpose.
You must not use investments as security or collateral for a loan.
Note that you can switch between complying significant investments in prescribed cirumstances.
Commitment
If you are nominated by a State or Territory government agency, either you or our spouse or de facto partner must have a genuine intention to reside in the State or Territory whose government agency nominated you for the subclass 188 visa.
Other Requirements
Not Have A History Of Involvement In Unacceptable Activities
You and your spouse or de facto partner must not have a history of involvement in business or investment activities that are of a nature that is not generally acceptable in Australia.
Current Or Last Substantive Visa Held
If, at the time of application:
- you hold a Subclass 491 Skilled Work Regional (Provisional)) visa, or a Subclass 494 Skilled Employer Sponsored Regional (Provisional) visa; or
- the last substantive visa that you held was a Subclass 491 or 494 visa;
then you must have held that visa for at least 3 years at the time of application.
Further requirements for visa grant include health and character criteria, owing no debts to the Australian Government, and having a good immigration record.
What Is The Cost To Apply For A Significant Investor Visa?
The VAC for the significant investor stream comprises of two instalments, as follows:
First Instalment
The first insalment, which is payable at time of application lodgement, is $8,925 for the primary applicant.
The amount payable for a secondary applicant who is aged 18 and over is $4,465. The VAC is $2,235 for an additonal applicant aged under 18.
Second Instalment
The second instalment is an additional fee that is payable for each applicant who is aged over 18 and does not meet a Functional English language requirement.
The amount payable is $9,795 for the primary applicant, and $4,890 for a secondary applicant.
This must be paid before grant of the visa.
Note that other costs may also apply, in addition to the visa lodgement fee, as part of the subclass 188 significant investor visa application. This can include medical testing, police clearances and document translation. The amount payable will depend on your personal situation.
How To Apply For A Significant Investor Visa
You can apply for the subclass 188 significant investor visa either onshore or from outside Australia.
Lodge your application online through ImmiAccount.
The visa may be granted if you are in Australia or offshore.
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In conclusion, we note that the above discussion provides an outline of the key aspects to be aware of if you are considering applying for a subclass 188 Business Innovation and Investment (provisional) visa under the Investor or Significant Investor visa streams.
Australia’s migration laws are complex, and each case is different. We have also referred to several terms which are defined in the migration provisions (and whose meanings may differ from their ordinary usage). We recommend that you seek professional advice before you proceed with applying for any visa class, as being fully informed about the process and requirements that apply will give you the best chance of achieving a successful outcome on your application, and thus lessen the chance that it will be refused. A migration professional can help you to do this.
For up to date advice on applying for an investor visa Australia, including Australia investor visa requirements, book your confidential consultation with a migration agent in Adelaide. PAX Migration Australia is a leading immigration service providing advice on all business visas, including the subclass 188 visa Australia under the investor and significant investor streams.
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