ACBC Panel Discussion – Australia’s Significant Investor Visa Program

On Friday 30 May, the Australia China Business Council’s (ACBC) presented a forum and panel discussion on Australia’s significant investor visa (SIV) program. We attended as guests of ANZ.

The event was attended by relevant government body representatives (including The Hon Scott Morrison (Federal Minister for Immigration and Border Protection), domestic and international lawyers, migration agents, fund managers, financial institutions and venture capital companies. An update on recent statistics relating to the SIV program provided some valuable insights into the development of the program since the visa class was introduced. Namely:

1. more than 60% of business and investment migrants from China have chosen Victoria as the proposed destination followed by New South Wales and Tasmania;

2. as of 30 May 2014, 97% of SIV applicants were from China with the remainder spread predominately throughout other South East Asian counties;

3. last year, 90% of SIV applicants chose to invest in State and Territory government bonds. This figure fell to 47% in the current year with more applicants investing in other complying investments, namely:

   • managed funds (42% of applications);

   • direct investment in Australian private companies (3% of applications); and

   • a combination of the above (8% of applications);

4. the largest age group for SIV applicants was a relatively young 35 to 44 years of age, followed by the age group between 45 and 54 years of age; and

5. there is almost a 50/50 split between male and female SIV applicants.

It appears that as SIV applicants become more familiar with the program and the Australian investment environment, applicants are becoming more comfortable with exploring the range of complying investment options available in Australia.

Minister Morrison addressed guests on the Government’s progress in relation to the SIV program review announced in early March 2014. During his address, he mentioned:

1. the primary policy consideration of the SIV program is to benefit the national interest by supporting Australia’s economic growth;

2. funds channelled through the SIV program should not be utilised for the purchase of residential property (although, this might already be the case given the current FIRB rules and the definition of ‘complying investments’);

3. areas of improvement are focused around complying investments;

4. the Government is looking into the practise of ‘recycling capital’ (presumably, this is a reference to certain investment products that enable investors to borrow money backed by the investment made); and

5. the Government will shut down the SIV program if it is not serving the national interest.

If you have any thoughts or comments on the above, feel free to leave a comment below or get in touch with us via twitter @evolvevisas.

From the Team