As one of the most livable countries in the world, Australia has become a hotspot for Chinese investors due to its superior living and social environment, as well as excellent educational resources. This has had an unprecedented impact on the Australian economy, prompting the Australian government to formulate new policies to control the excessive growth of immigration!
I. Australian 188A Business Innovation Visa: Allowing Free Interchangeability Between Primary and Secondary Applicants
Since the implementation of Australia's entrepreneurial immigration program, it has been highly sought after by investors and has undergone several policy changes. The 188A visa will implement a new policy after July 1st, which will allow primary and secondary applicants to freely interchange. The 188A new policy reform document states that in the future, the 188A visa category will allow primary and secondary applicants to freely switch roles in Australia. In short, if the primary applicant is very busy with their business in China and cannot attend to the business in Australia, the spouse can replace the primary applicant to meet the entrepreneurial requirements in Australia. After completing the business requirements, the whole family can transition to permanent residency, successfully achieving both immigration and domestic business goals simultaneously.
The 188A visa does not have high asset requirements for applicants, nor does it have rigid requirements for education or English proficiency. The scoring model adopted is close to China's national conditions, and the subsequent business investment methods in Australia are flexible and diverse. Once requirements are met, the whole family can quickly transition to permanent residency, making it suitable for experienced business owners in China. The new policy to be implemented after July 1st, which will allow for the free interchange of primary and secondary applicants, is undoubtedly great news for those intending to apply for the 188A visa.
Application Conditions for the Australian 188A Business Innovation Visa:
1. Good health and no criminal record;
2. Obtain state government nomination;
3. The primary applicant must be between 18 and 55 years old, with an EOI score of 65 or above;
4. The primary applicant must have successful experience in operating and managing a business;
5. Total family assets must reach 800,000 AUD;
6. The company in which the applicant holds shares must have had an annual turnover of 500,000 AUD for 2 out of the 4 years prior to application (a maximum of 2 companies can be combined);
7. The primary applicant and their spouse must meet the following shareholding requirements: for companies with an annual turnover of 400,000 AUD or more, a shareholding of 30% or more is required; for companies with an annual turnover of less than 400,000 AUD, a shareholding of 51% or more is required; for listed companies, a shareholding of 10% or more is required.
Regarding the conditions for transitioning from the 188A visa to the 888 permanent residency visa, after holding the 188A visa for 4 years and meeting the following conditions, the applicant can become an Australian permanent resident:
1. Obtain state government nomination;
2. In the 2 years prior to application, the primary applicant must have resided in Australia for at least 12 months (the Victorian government requires 16 months of residence within 2 years);
3. The business used by the primary applicant to apply for the permanent residency visa must not have been used by anyone else to apply for a permanent residency visa;
4. At the time of application, the primary applicant must have directly managed the business for at least 2 years;
5. In the 12 months prior to application, the primary applicant must meet 2 of the following 3 conditions: (1) Maintain net business assets in Australia of 200,000 AUD; (2) Total family assets of 600,000 AUD; (3) Employ at least 2 full-time employees (Australian citizens, permanent residents, or New Zealand passport holders, excluding family members);
6. Regarding business turnover and ownership, in the 12 months prior to application, the primary applicant should meet:
(1) The applicant's business turnover in Australia reaches 300,000 AUD;
(2) The applicant meets the shareholding requirements for the business, namely: for an annual turnover of 400,000 AUD or more, a 30% shareholding is required; for an annual turnover of less than 400,000 AUD, a 51% shareholding is required. In addition, after becoming an Australian permanent resident, the applicant must reside in Australia for a cumulative total of 2 years every 5 years.
II. Tightening of SIV Significant Investor Visa Conditions Effective July 1st
Recently, the Australian government announced the latest policies for the Significant Investor Visa (SIV) and the Premium Investor Visa (PIV), and confirmed that the new SIV policy will be officially implemented on July 1, 2015. According to Jiang Hua, this new SIV policy has significantly revised the investment framework for the 5 million AUD. According to the latest policy, the investment scope requirements for the SIV are as follows:
First, the 5 million AUD must be primarily invested in managed funds;
Second, the 5 million AUD cannot be invested in government bonds, residential real estate, or non-listed companies.
Main Requirements for the Investment Proportion and Content of the 5 Million AUD:
(1) At least 10% of the funds (500,000 AUD) must be invested in Australian venture capital funds or private equity funds that invest in start-ups or small private enterprises. According to market feedback, the Australian government hopes to increase this portion of the investment share to 1 million AUD within two years.
(2) At least 30% of the funds (1.5 million AUD) must be invested in emerging companies listed on the Australian Securities Exchange through managed funds or listed investment companies;
(3) At least 60% of the funds (3 million AUD) must be invested in a portfolio of compliant investment products through managed funds or listed investment companies. The investment portfolio may include other Australian listed companies, compliant bonds and notes, annuities, or real estate (investments in residential real estate must not exceed 10%).
The Australian government's revision of the SIV investment scope aims to channel funds into more active economic sectors, allowing the 5 million AUD investment immigration program to truly play its role in improving the Australian economy. At the same time, it will clean up the mixed market of fund managers and raise the threshold for fund managers of SIV investment products. In the future, only high-quality fund managers with a truly good track record and a certain scale will be able to provide investors with compliant investment products.