THE POTENTIAL TO BOOST YOUR INVESTMENT RETURNS JUST GOT BIGGER WITH AUSTRALIA’S BUSINESS & INVESTMENT PROGRAM
Earlier this year we pointed to big changes coming to the Business Innovation and Investment Program (BIIP) that can make it easier for investors looking for alternate residency as a return on their Australian business and investment interests.
The Australian Government has made changes to the BIIP program on 1 July 2021 as part of a focus to attract more foreign investment to support Australia’s COVID-19 economic recovery. Now that the changes are in place, what does it mean for foreign investors looking to play a part in Australia’s economic future?
Streamlined Investment Categories
There are now four key visa streams replacing the previous nine available to foreign investors: Investor, Significant Investor, Business Innovation and Entrepreneur.
By making these updates, the program is simplified and can now support greater numbers of business owners, investor and entrepreneurs looking for a permanent residency pathway and level up their business or investments in Australia.
Simplified pathways to permanent residency
Temporary subclass 188 visa holders in all four BIIP streams will now be eligible to apply for permanent residency after three years, down from 4 years for the investor stream and up from 2 years for the business innovation stream. With the 188 visa validity increasing from four to five years, foreign investors will now have more time to meet the requirements for permanent residency.
Changes to Eligibility Criteria
- Foreign investors looking to apply through the Business Innovation stream will now need to have a minimum business or personal assets of $1.25 million and an annual turnover of $750,000. These increases have been introduced to further ensure their business or businesses can contribute to our economy long term.
- Investor stream applicants will now need to transfer $2.25 million to Australia to make a qualifying investment (up from $1.15 million) and must meet residency requirement when they apply for PR (i.e., 2 years)
- Entrepreneur stream applicants will now need to be nominated by a State or Territory government to develop their innovative idea in Australia, give greater opportunities to genuine innovative and emerging enterprises.
Changes to the Complying Investment Framework
The complying investment framework has been amended for the Investor visa and Significant Investor visa.
- Investor visa holders must now invest in a Complying Investment rather than in Government bonds.
- Significant Investor visa holders are required to Percentages of complying investment ratios have been adjusted to spotlight venture capital and private growth equity – a strategy to provide greater capital to support fast-growth businesses and encourage business innovation.
- 20% in Venture Capital and Private Equities
- 30% in Emerging Companies
- 50% in a Balancing Investment (e.g. corporate bonds, listed equities, commercial property)
- Complying investments will need to be maintained until permanent residency (PR) is granted or for five years. Once PR is granted, investors can withdraw their complying investment.
How you can make the BIIP work for you with TMA
We believe the refinement of the BIIP is a positive initiative that will continue to attract innovative and high-net worth business individuals to Australia. With more spots now open to qualified foreign investors, there are more opportunities than ever for you to invest and contribute to the Australian economy.
And like any visa application or immigration process, a robust strategy and a quality immigration partner with an excellent reputation and solid approval rating with the Department of Home Affairs will give you the best chance of success.
At TMA we provide a highly personalised, done-for-you service to achieve your investment and migration objectives. We approach our BIIP applications in a holistic manner, looking at the end goal of securing permanent residence while maintaining focus on the mid-term strategy of keeping your investments tracking and permanent residency in motion.
Our Investment Migration Roadmap to Australian Permanent Residency
From a discovery meeting to understand your goals and an initial feasibility assessment to ensure you qualify for the visa and identify any potential risks or roadblocks, we then move into the investment and migration strategy planning sessions and connect you with our trusted network providing investment advisor and broker introductions to give you accurate financial advice. Our approach to support your investment is something we like to think of as TMA being your Immigration Concierge, giving you a fully guided solution at every step of the way.
We’ve created this roadmap as a tool to show the process for applying, expected timeframes and how TMA can support your investment migration journey to Australia. This free download is your first step to ensure you’re making the right decisions to your residency success.
We are with you every step of the way, supporting you from initial assessment, advocating your case to secure an invitation, advice and strategy, preparing and lodging your visa application, up to visa grant. Our work does not stop once the visa is granted. We hold annual reviews to track and monitor progress of your investments and ensure you achieve the eligibility criteria for permanent residency during the term of your provisional 188 visa, and more.
If you would like to talk to one of our team about your investment migration options and strategic planning, contact us for a consultation today.