Investment criteria relaxed for Significant Investor Visa

27 Aug 14

AUSTRALIA

IMPACT – MEDIUM

What is the change? The New South Wales (NSW) Government has announced a change that significantly eases investment restrictions of Significant Investor Visa (SIV) nominees.

What does the change mean? New applicants will no longer have to meet minimum holdings in NSW Waratah bonds.

  • Implementation timeframe: The changes will take effect 1 Sept.
  • Visas/permits affected: Significant Investor Visas (Subclass 188 and 888 visas).
  • Who is affected: Foreign nationals nominated for SIVs from 1 Sept.
  • Impact on processing times: None.
  • Business impact: The changes are intended to attract investors to New South Wales and give investors more choices to diversify their investments.

Background: Beginning 1 Sept., the NSW Government will eliminate the requirement that Significant Investor Visa applicants hold a certain amount of their money in NSW Waratah bonds. Applicants may now invest all of their $5 million investment in complying investments of their choice.

Significant Investor Visa applicants must invest AUD$5 million in complying investments for at least four years before they are eligible to apply for a permanent visa.

The new policy will apply to applicants nominated from 1 Sept. Those nominated for SIVs before 1 Sept. are bound by the current rules that require applicants to invest 30 per cent, or AUD$1.5 million, in NSW Waratah bonds.

The NSW Government’s Deputy Premier and Minister for Trade and Investment Andrew Stoner announced the change on 27 Aug.

BAL Analysis: The removing of investment restrictions will make the Significant Investment Visa more attractive and flexible to high-value foreign investors.

This alert has been provided by BAL Australia. For additional information, please contact australia@balglobal.com

MARN: 9683856

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