Monday, 2 June 2014

Significant Investor Visa – twenty months on

On 24th November 2012 the Australian government introduced the significant investor visa (SIV) to encourage foreign investment into Australia. 

Successful applicants receive a 4 year provisional subclass 188 visa after investing AUD$5 million into 'approved' investment funds (including ASIC approved funds, state government bonds and proprietary operating companies).

If the subclass 188 visa holder spends a cumulative total of 160 days  in Australia over 4 years it is then possible to apply for a subclass 888 permanent residency visa or extend the subclass 188 visa.
After an initial slow start, interest in this visa category has been growing steadily with applications currently outstripping grants. 

The first successful visa was granted in September last year and since then grants have been averaging at around 30 to 35 per month. 

Statistics recently made available disclose the majority of applicants for this class of visa come from China (72%), with strong interest from other countries such as Malaysia, the United States, Canada and the UK. Because of the volume of applications from China and the need to ensure the integrity of them, processing of these applications is done by a dedicated team working out of Hong Kong. All other applications are dealt with in Adelaide. 

These visas are attractive to high net worth individuals who, because of their business and lifestyle obligations cannot commit to spending long periods of time in any particular place. Although the qualifying criteria may seem to be straightforward enough, they are not easy visas to obtain. National interest issues and source of funds (that is, where did the applicant get the $5m funds which are to be invested) figure prominently in all applications, and anyone thinking of applying for this class of visa should seek legal advice before doing so.

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