The Australian Government offers business owners and investors the opportunity to migrate to Australia via its Business Innovation and Investment program. The Business Innovation and Investment program is a two-stage process, with a provisional visa (subclass 188) first and then a permanent visa (subclass 888). From 1 July 2021, several key changes apply to the Business Innovation and Investment program.
This article will give a brief overview of the changes introduced from 1 July 2021, and then explain the new requirements more in-depth under each visa stream.
What Are The Key Changes I Need To Know?
You can find a brief overview of the key changes to the Business Innovation and Investment program below:
188 Visa Stream |
Description |
Requirements if invitation received before 1 July 2021 |
Requirements if invitation received after 1 July 2021 |
Business Innovation |
For applicants proposing to operate a new or existing business in Australia |
Personal and business net assets of $800K |
Personal and business net assets of $1.25 million |
Investor |
For applicants proposing to carry out business or investment activity in Australia |
Total net value of eligible investments was at least $1.5 million Personal and business net assets of $2.25 million for two fiscal years. Must make a designated investment of at least $1.5 million in the State or Territory where the nominating State or Territory government agency is located. |
Total net value of eligible investments was at least $2.5 million Personal and business net assets of $2.5 million for two fiscal years. Must make a complying significant investment of at least $2.5 million and hold that investment continuously for the life of your provisional visa. |
Significant Investor |
For applicants to carry out investment activity in Australia |
Must make a complying significant investment of at least $5 million, which consists of:
Visa valid for four years with an opportunity to extend for a further two years |
Must make a complying significant investment of at least $5 million, which consists of:
Visa valid for five years with an opportunity to extend twice (each extension for two additional years) |
Entrepreneur |
For applicants proposing to carry out entrepreneurial activities in Australia |
Have received funding of at least $200,000 from one of the following entities:
|
$200,000 funding is no longer required. However, relevant states and territories may set additional criteria. |
Premium Investor |
For applicants proposing to carry out business or investment activity in Australia |
Make a complying premium investment of at least AUD15 million |
Closed |
The subclass 188 has now been consolidated into four streams – Business Innovation, Investor, Significant Investor and Entrepreneur. The subclass 132 has closed.
Requirements for Subclass 188 Visa post 1 July 2021
Business Innovation Stream
Under the business innovation stream, the applicant must:
- be under 55 years old;
- score 65 points or higher on the points test;
- be nominated by a State or Territory agency;
- have personal and business net assets of $1.25 million;
- have an ownership interest in a main business, and that business had an annual turnover of $750K (for at least two of the last four fiscal years); and
- have a genuine and realistic commitment to establish or participate in a qualifying business in Australia.
Additionally, the applicant requires state or territory nomination, and each state/territory will require the applicant to meet criteria under this stream:
NSW |
VIC |
QLD |
SA |
WA |
NT |
TAS |
Under 50 Assets of $1.75 million Business turnover of $1.25 million Business investment of $500K Business in a target sector |
Have a STEMM qualification or an MBA or relevant business history in a target sector. |
Criteria not yet released. |
DHA criteria (as outlined above) |
Criteria not yet released. |
Criteria not yet released. |
Investor Stream
Under the investor stream, the applicant must:
- be under 55 years old;
- score 65 points or higher on the points test;
- be nominated by a State or Territory agency;
- have a total net value of eligible investments of at least $2.5 million;
- have personal and business net assets of $2.5 million for two fiscal years;
- make a complying significant investment of at least $2.5 million and hold that investment continuously for the duration of the provisional visa. You must invest the funds in the following proportions:
- at least $500,000 in venture capital and growth private equity funds which invest in start-ups and small private companies;
- at least $750,000 in approved managed funds. The managed funds must invest in emerging companies listed on the Australian Stock Exchange; and
- a ‘balancing investment' of at least $1.25 million in managed funds.
The applicant requires state or territory nomination, and each state/ territory will require the applicant to meet additional criteria under this stream:
Significant Investor Stream
The applicant must (on or after the time of application) make a complying significant investment of $5 million, invested into the following categories:
- at least $1 million in venture capital and growth private equity funds which invest in start-ups and small private companies;
- at least $1.5 million in approved managed funds. The managed funds must invest in emerging companies listed on the Australian Stock Exchange; and
- a ‘balancing investment' of at least $2.5 million in managed funds.
The applicant requires state or territory nomination, and each state/ territory will require the applicant to meet additional criteria under this stream:
Austrade can also nominate applicants.
Entrepreneur Stream
Under the entrepreneur stream, the applicant must:
- be under 55 years old; and
- undertake or propose to undertake complying entrepreneur activity.
The applicant requires state or territory nomination, and each state/ territory will require the applicant to meet additional criteria under this stream:
To meet the complying entrepreneur activity requirement, the entrepreneur activity must be related to either commercialising products or services in Australia or establishing a new business or enterprise in Australia. It cannot be an investment into residential property, labour-hire company or investing into an existing business or enterprise.
Key Takeaways
The Business Innovation and Investment program is a key focus of Australian migration policy. Therefore, applicants who can satisfy the criteria of the 188 visa (in either stream) will receive preference. The changes impact applicants who have received an invitation after 1 July 2021. Applicants who received an invitation and applied for the subclass 188 pre 1 July 2021 will be subject to the historical requirements.
Evidently, the amendments reveal an increase in asset threshold, business turnover and the nature of investments. The objective of the Australian government is to attract business owners, investors and entrepreneurs that have the capacity and potential to significantly and beneficially impact the Australian economy.
If you have any questions about the new requirements under the Business Innovation and Investment program, LegalVision's experienced immigration lawyers can help. Contact them at 1800 532 904 or fill out the form on this page.
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