July is the start of the new immigration program year and this is the latest news on the upcoming changes for Australian immigration.

Minister for Immigration Alex Hawke made a statement on Wednesday 19 May on how the Business and Innovation and Investor Program will be changing in 2021.  New rules commence on 01 July 2021 and although the legislation is yet to be released, the Minister’s statement gives us a good idea how the program will operate moving forward and how the changes will affect you, the investor.

What is the Business Innovation and Investment Program?

The Business Innovation and Investment Program provides a path for people to migrate to Australia on the proviso that they financially invest in the Australian market.  This visa category is one of the fastest and easiest ways to get permanent residency and even citizenship in Australia.  It also allows you to bring your immediate family to Australia, something other visas have not always made easy.

What Are the Changes?

The new legislation has not yet been released so we do not have a full picture of the new system, but based on Minister Hawke’s statement, the following changes will occur as of 01 July 2021:

• The 132A and 132B Business Talent visas will no longer exist
• The 188D Premium Investor visa will no longer exist
• The ratios of the Complying Investment Framework are changing
• The threshold for the 188B Investor visa is increasing from $1.5 million to $2.5 million
• The 188B Investor visa will now have to invest in accordance with the Complying Investment Framework
• The term of all 188 visas will be 5 years, but complying visa holders will be able to apply for permanent residency after just 3 years

In summary, the new visas under the Business Innovation and Investment Program are:

How do I get Permanent Residency?

Under the old rules, holders of the 132 Business Talent visa were granted immediate permanent residency.  The changes are doing away with this visa and new applicants will have to spend some time as temporary visa holders before they can apply to become permanent residents of Australia.  Previously, temporary visa holders in the 188 stream could stay for 4 years and apply for permanent residency at the end of those 4 years.  This lead to something of a panic at the end of the 4 years, with visa holders scrambling to get paperwork formalised in time so that a visa extension would not be needed.  In order to grant more flexibility, 188 visa holders now have a temporary visa of 5 years but can apply for permanent residency after 3 years, provided they comply with the requirements.

The requirements vary slightly from case to case, but generally speaking to comply with the 188 and qualify for permanent residency, you must:

• Reside in Australia for at least 40 days per calendar year; and
• Your investment must adhere to the rules of the Complying Investment Framework.

Complying Investment Framework

The Complying Investment Framework sets out how the funds must be invested.  This framework has always existed for 188 visas but effective 01 July 2021, the percentages allocated into the various components will change. 

The components are:

• Venture Capital and Private Equity
  This is used to invest in Australian start-ups and small private companies.
• Approved Managed Funds
  This is used to invest in new companies listed on the Australian Stock Exchange (ASX).
• Balancing Investment
  the remaining total of investments can comprise any of the above 2 categories.

Perhaps the most significant change of the announcement, is that the holders of 188B Investor visa must now also comply with the Complying Investment Framework (CIF).  Prior to this change, holders of the Investor visa could invest their funds into Australian Government bonds.  The change has been made to ensure the money coming from investor visas goes to new businesses and creates local jobs.  While the CIF is a slightly higher risk venture than government bonds, we hope that potential applicants can see the reasoning behind the change and that it does not dissuade them from their plans to move to Australia.

Entrepreneur Visa

The Entrepreneur visa is the lowest threshold investment visa, requiring an investment of $200,000.  The Department of Home Affairs announced in December 2020, that the required assets of the applicant would increase from $800,000 to $1.25 million in July 2021, but yesterday’s announcement was silent on any further changes to this visa.  We await the release of the new legislation which will give us all the details on whether anything else is different.

Tax Improvements

Historically, tax for investors in Australia has been needlessly complicated.  Following the 2021-2022 Federal Budget announcements it appears the government intends to simplify the tax rules for visa holders.  The Australian government plans to replace the existing framework with a new set of rules that are easy to understand and apply.  This should reduce the cost of complying with the rules, and provide more certainty for investors.

One new rule is that any person who physically resides in Australia for 183 days or more in a year will be considered an Australian tax resident.  Those who have been here for fewer than 183 days will have other criteria but the government assures us these will be simpler and based on measurable facts.

If Australian tax law was putting you off investing in Australia, it is worth revisiting the idea with your financial advisor.

What Now?

If you have the means to invest and you are considering a move to Australia, the Business Innovation and Investment Program remains one of the best pathways to entry, even after the changes.  You don’t need to worry about things like points or skills assessments, you can bring your spouse and children with you, and you can apply for permanent residency – now in only 3 years!  Of course this is a big decision and we recommend you speak to an experienced lawyer and an independent  financial advisor *  Make an appointment with Work Visa Lawyers today to discuss whether this is the right visa for you.

*Work Visa Lawyers are not financial advisors and cannot provide you with financial advice – you should also speak with an independent financial advisor before making any investment decisions.

Australian Business and Significant Investor Visas Subclass 188 Closed - New Visa Expected in 2024! Read more here! 

Author

Chris Johnston, Principal Lawyer and Founder of Work Visa Lawyers

Do you need help?

Our team of experienced Immigration Lawyers and Migration Agents look forward to assisting you with your Australian visa or appeal.

Based in Adelaide South Australia, we provide Australian Immigration advice to people and businesses from all over the world.

If you require further information regarding your Australia visa options you can contact us through:

(08) 8351 9956 or +61 8 8351 9956 or This email address is being protected from spambots. You need JavaScript enabled to view it.

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SOURCES:

• 17 December 2020, Australian Government, Alan Tudge press release, URL: https://www.homeaffairs.gov.au/reports-and-publications/submissions-and-discussion-papers/biip-getting-better-deal-australia.

• 19 May 2021, Australian Government, Alex Hawke press release, URL: https://minister.homeaffairs.gov.au/AlexHawke/Pages/getting-a-better-deal-for-australia-from-visa-investments-19-05-2021.aspx.

• Federal Budget 2021-2020 Fact Sheet, Australian Government, URL:
  https://budget.gov.au/2021-22/content/factsheets/download/factsheet_tax.pdf

On 17 December 2020, the Morrison Government has made an announcement to reform business and investor visas aiming to maximise the economic benefits for Australia.

What changes have been announced?

• 9 steams reduced to 4 streams

The business program will be simplified from 9 streams to 4 streams which are:

• Business Innovation(perhaps similar to the current 188A)
• Entrepreneur (perhaps a development of the current 188E)
• Investor (perhaps as development of the current188B)
• Significant Investor (further developments to the 188C).

From 01 July 2021, the Premium Investor (188D), Significant Business History (132A) and Venture Capital Entrepreneur visas (132B) will be closed to new applications. However, those already lodged before 01 July 2021 will continue to be processed.

• Visa timeframe changes - all include a provisional visa with path to PR

These four streams Business Innovation (188A); Entrepreneur (188E); Investor (188B) and Significant Investor (188C) are provisional visas and Permanent Residence pathways.  Those visa holders need to meet certain requirements after 3 years to be eligible to apply for a Permanent Residence. 

The visa effective timeframe will be extended to 5 year for visa holders.

Business Innovation and Significant Investor visa holders will also continue to be able to extend their provisional visas if they do not meet the business and residence thresholds in the required timeframe.

• Changes for 188A Business Innovation visa eligibility requirements

Personal and Business assets will be increased from AUD800,000 to 1.25 million dollars for the visa applicants to demonstrate.

Annual turnover will also be increased from AUD500,000 to AUD750,000 to prove their business acumen.

• Changes for Entrepreneur (188E) visa requirements

The requirement for receiving at least AUD200,000 funding  from an approved entity is scrapped. Visa applicants will need to be endorsed by a State or Territory government.

Further changes will be announced in the early half of next year. Work Visa Lawyers are closely monitoring the changes.

Australian Business and Significant Investor Visas Subclass 188 Closed - New Visa Expected in 2024! Read more here! 

Comments by Chris Johnston (Lawyer & RMA):

Overall, the changes announced make Business and Investor visas more expensive and more time consuming for applicants.

The big question is, will this impact on demand, or will there still be plenty of potential applicants for business and investor visas.

The concern underlying this, is that the Federal Government has made a number of changes to visa, the employer sponsored 482, the seldomly used 494 Regional visa, that have made the processes more expensive and complicated, and that have been shunned by business, industry and applicants. 

The most successful visa revamp has been the GTI Visa, a variation of the Distinguished Talent Visa, that has lowered the requirement and been met very enthusiastically. 

The other big question to be asked is, why are there no feartures in this major revamp, to benefit regional areas?  Without incentives for regional areas, the Business and Investor migrants will likely all cluster around Melbourne and Sydney. 

It has become harder for 188A visa applicants to apply for a permanent residence visa subclass 888.  188A visa applicants will be required to continuously meet certain requirements (i.e. ownership & continuous management) for 3 years before a permanent resident visa application.  

The turnover requirement has also been adjusted for 188A visa application (AUD500, 000 to AUD 750,000 annual turnover).  This adjustment will encourage 188A visa holders to open High net worth businesses in Australia in order to boost Australian economy after the COVID crisis.

Previously, 188A visa holders more inclined to open small businesses e.g. café and restaurants, those businesses will be unlikely to fulfil the new turnover requirement.

The Australia government should perhaps consider trying to balance the needs of Australia market and the needs of business migrants. High threshold requirements for business migrants to obtain a PR will make Australia a less attractive country to migrate and migrants may choose to migrate to other popular and investment policies friendly countries like Malta; Cyprus and United Kingdom.    

The Australia Government should consider the following factors to maintain and improve the benefits delivered by Business & Investment visas:

• Improving servcie standard times and levels of communication during the process of applying and waiting for a result.
• Maintaining good relationship with key migration source countries.
• Create visa options to benefit Regional Australia not only to Sydney & Melbourne.

Do you need help?

Our team of experienced Immigration Lawyers and Migration Agents look forward to assisting you with your Australian visa or appeal.

Based in Adelaide South Australia, we provide Australian Immigration advice to people and businesses from all over the world.

If you require further information regarding your Australia visa options you can contact us through:

(08) 8351 9956 or +61 8 8351 9956 or This email address is being protected from spambots. You need JavaScript enabled to view it.

Subcribe to our facebook to get updated migration information: WORK VISA Lawyers 

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Sources

https://minister.homeaffairs.gov.au/alantudge/Pages/Getting-a-better-deal-for-Australia-from-business-and-investment-visas.aspx

On 06 October 2020, Australian government has handed down the federal budget 2020 which is to recover the Australian economy.  2020/2021 migration planning level has also been released shortly after the federal budget announcement.  

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Highlights

• Australia’s net Migration remain the same
• Global Talent Independent Program (GTI) allocations have been tripled
• Business Innovation and Investment Program (BIIP) allocations have been doubled

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Click the following blog for the information about the most recent changes annouced: 2020/2021 Migration Latest Updates

Tonight, the federal government will provide more details to allocate funding towards services and programs for the country for 2020 -2021 financial year.

The Federal budget 2020 will deliver an economic recovery plan in which Australian migration will be a key component.

Highlights

• Australian government will announce the Federal Budget 2020 tonight

• Migration program planning levels will be announced tonight

• Australian states & territories General Skilled Migration (GSM) will open soon