Subclass 188 -Business Innovation and Investment (Provisional) Visa

Significant Investor Stream The Significant Investor stream of the subclass 188 visa provides a pathway to permanent residency for people who are able to invest at least AU$5 million in Australian investments. If you wish to apply for this visa, which is valid for up to five years, you must first lodge an Expression of Interest. If this is successful, and you are nominated by a State or Territory (or by Austrade), you will be invited to lodge an application for this visa. The minimum requirements for this stream are set out below:

At the time that you are invited to apply for this visa:

• you must be nominated either by Austrade OR by an Australian State or Territory government agency (in which case either you or your spouse/de facto partner must intend to reside in that State/Territory)
• you (or you and your spouse/de facto partner, if applicable) must have net assets of at least AU$5 million, which are legally acquired, unencumbered, and can be used to make your complying significant investment in Australia
• you (and your spouse/de facto partner, if applicable) must not have had no involvement in unacceptable business or investment activities

Your complying significant investment MUST include:

• at least AU$1 million (20% of your total investment) invested in venture capital funds or growth private equity funds that invest in start-ups and small private companies AND
• at least AU$1.5 million (30% of your total investment) invested in one or more managed investment funds that invest in emerging companies listed on the Australian Securities Exchange (ASX) AND
• a ‘balancing investment’ of up to AU$2.5 million (remainder of your investment) invested in managed funds that may invest in a range of eligible assets, including:
  • securities of a company, a real estate investment trust or an infrastructure trust quoted on the ASX (or another Australian securities exchange)
  • bonds or notes issued by a company that is quoted on the ASX; or by a wholly-owned subsidiary thereof, if incorporated in Australia; or by a company incorporated in Australia (or a registered foreign company), if the bonds or notes are rated as investment grade by an accredited Australian financial services agency
  • annuities issued by Australian-registered life companies that do not repay capital during the period of the visa
  • Australian real property, (excluding direct investment in residential property, and limited to 10% indirect investment in residential real estate as part of the fund’s net assets. Restrictions regarding the purpose of the investment also apply)
  • cashheld by Australian authorised deposit-taking institutions (ADIs), including certificates of deposit, bank bills and other cash-like instruments (limited to 20% of the fund’s net assets)
  • derivatives (if the investment is made for risk management purposes, is not a speculative investment, and is not designed to materially reduce/eliminate an investor’s exposure to the risk of loss from changes in the market price of an emerging companies investment)

NOTES: You may switch between complying significant investments, provided you meet the reinvestment requirements. You must agree not to bring any action against the Commonwealth for any loss relating to your complying investments. You must NOT use your complying investments as security or collateral for a loan.