The Federal Government has announced the new complying investment framework for the Significant Investor Visa (SIV) and Premium Investor Visa (PIV) programme. The new framework will be implemented from 1 July 2015.
Under the new arrangements, SIV applicants will be required to invest at least $5 million over four years in complying investments, which must now include:
- At least $500,000 in eligible Australian venture capital or growth private equity fund(s) investing in start-up and small private companies. The Government expects to increase this to $1 million for new applications within two years as the market responds;
- At least $1.5 million in an eligible managed funds or Listed Investment Companies (LICs) that invest in emerging companies listed on the Australian Securities Exchange (ASX); and
- A ‘balancing investment’ of up to $3 million in managed funds or LICs that invest in a combination of eligible assets that include other ASX listed companies, eligible corporate bonds or notes, annuities and real property (subject to the 10 per cent limit on residential real estate).
Direct investment in real estate has never been a complying investment for SIV and this does not change under the new arrangements. Indirect investment in residential real estate through managed funds, however, will now be limited.
The Government intends to introduce a new PIV from 1 July 2015. The PIV will offer a more expeditious, 12 month pathway to permanent residency than the SIV, for those meeting a $15 million threshold. The PIV will be available at the invitation of the Australian Government only, with potential recipients to be nominated by Austrade. From 1 July 2015, Austrade will also become a nominator for the SIV, alongside State and Territory Governments, and the sole nominator for the PIV.