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How to avoid the business and investment visa changes

The Australian government has announced that in July 2021 it will close the 132A Significant business history visa and increase business assets and turnover requirements for the 188A Business innovation visa.

Time is running short before the changes come into effect on 1 July 2021. For the 188A visa the government plans to increase the required:

  • business assets from A$800,000 to A$1.25m
  • turnover from A$500,000 to A$750,000

At the end of June this year the government will also close the 132A visa. This visa is the only business and investment visa in Australia that means immediate permanent residence on visa grant. The other business and investment visas are a two-stage process: a provisional visa that is followed by a permanent residence visa after 2 to 4 years.

The general requirements of the 132A visa are:

  • business assets of A$400,000
  • business turnover of A$3m
  • personal assets of A$1.5m
  • under 55 years of age or invest A$3m
  • functional English or pay second instalment of A$9,925
  • establishing or investing A$1.5m in a qualifying business in Australia (includes settlement costs)

For wealthy people overseas that cannot enter Australia due to current border restrictions, the simplest option is to begin the 188C Significant investor visa process now. This visa features:

  • no age limit
  • functional English or pay second instalment of A$9,925
  • invest A$5m over four years in a complying investment

A complying investment means A$1.5m in eligible managed funds or listed investment companies, A$500,000 in venture capital or growth private equity funds and the remaining A$3m balance in complying investment funds, stocks, bonds, annuities or real estate (A$30,000 limit on real estate). The complying investment framework is also likely to change on 1 July 2021.

The current processing time for the 188C visa is about two years. An applicant does not need to be inside Australia to lodge an application and make the investment to start the clock. Recently, the Department of Health Secretary said it was likely that substantial border restrictions will remain until the end of 2021.

Applications received before 1 July 2021 will not be subject to the new rules. If you and your family are interested in an investment or business visa in Australia, the time to make inquiries is now.

To find out whether you are eligible to apply for an investment or business visa in Australia, contact us now on (07) 5591 5099 and a member of our team will be happy to help.

 

Author: Sed Crest

Director: Ian Kennedy & Sophie Pearson