Subclass 188 The Significant Investor Stream
The Significant Investor Stream of the Subclass 188 visa is a distinctive pathway designed by the Australian government to attract high-net-worth individuals willing to make substantial investments in the Australian economy. This stream offers a provisional visa, leading to potential permanent residency, under the Business Innovation and Investment Program. This visa is a tailored pathway for affluent individuals who can significantly contribute to Australia’s economy through substantial investments. It provides an opportunity for investors and their families to eventually become permanent residents of Australia, subject to fulfilling investment and residency stipulations. Given the complexity and financial implications, potential applicants often benefit from consulting with financial advisors and registered migration agents to navigate the process effectively.
Eligibility Criteria:
Applicants interested in the Significant Investor Stream must satisfy several criteria:
✦ Nomination:
They must be nominated by an Australian state or territory government agency or Austrade on behalf of the Australian government.
✦ Investment Amount:
A commitment to invest at least AUD 5 million in complying investments in Australia is required.
✦ Complying Investments:
The investment must be allocated across various options, such as venture capital and growth private equity funds, approved managed funds investing in emerging companies, and balancing investments in managed funds or Listed Investment Companies (LICs) that invest in a combination of eligible assets.
✦ Duration of Investment:
The investment must be maintained for at least four years.
✦ Residency Requirement:
There is a flexible residency requirement, which doesn’t mandate continuous stay but requires a significant amount of time spent in Australia over the course of the visa.
✦ Health and Character Requirements:
Standard health and character checks apply.
✦ No Age Limit:
Unlike other streams, there is no upper age limit for applicants.
✦ No English Language Requirement:
While there is no mandatory English language proficiency requirement, a lack of functional English may attract an additional fee.
✦ No Points Test:
This stream does not require applicants to pass a points test.
Investment Options
The investment of AUD 5 million must be spread across various complying investment options:
At least AUD 500,000 in venture capital and growth private equity funds investing in start-ups and small private companies.
At least AUD 1.5 million in approved managed funds investing in emerging companies listed on the Australian Stock Exchange.
A ‘balancing investment’ of up to AUD 3 million in managed funds, which may include Australian listed securities, eligible corporate bonds or notes, annuities, and commercial real estate.
Visa Application Process
➜Expression of Interest (EOI)
Applicants submit an EOI via the SkillSelect system.
➜Nomination
They must be nominated by an Australian state or territory government agency or Austrade.
➜ Visa Application
Once nominated, the individual can formally apply for the visa.
➜ Investment
Following the visa grant, the applicant has a specified timeframe to make the complying investments.
Benefits of the Visa
The Significant Investor Stream offers several advantages:
➜ Potential for Permanent Residency
After maintaining the investment for four years, applicants can pursue permanent residency through the Subclass 888 visa.
➜ No Direct Business Management Requirement
Applicants are not required to actively manage a business in Australia.
➜ Family Inclusion
Allows the primary visa holder to include family members in the application.
➜ Travel Rights
Multiple entries into Australia for the visa’s duration.
➜ Flexibility in Investment Choices
Offers a range of investment options.