188 – Australia Innovation and Investment visa (Provisional)

Holders of a temporary residence visa are somewhat restricted in what they can do, for example applying for medical assistance from Medicare.

With a provisional Innovation and Investment visa, the following is permitted:

• work on establishing or developing a new or existing business, invest in a business in an Australian state or territory, or make a designated investment in a complying investment in Australia
• multiple entry to Australia during the validity period of the visa
• have family members stay with you in Australia
• apply for the permanent Innovation and Investment visa (subclass 888) when you are eligible

Applicants are required to lodge an Expression of Interest (EOI) before applying for the Innovation and Investment visa. If you are invited by a state or territory government you can then proceed to lodging an application.

When lodging your EOI, the following must be specified:

• which stream you will be applying under
• where you intend to do business (states and/or territories)

After submitting your EOI, state and territory governments will assess your application in order to determine the viability of your proposed business activities in Australia.

Note: the various state and territories follow different procedures. In some cases the nominating state or territory will contact you, in others you may be required to contact the nominating state or territory authority.

Important: if you are invited to apply for a visa you are required to do so within 60 days. Failure to apply following your second invitation will result in your EOI being removed from the SkillSelect system.

When you lodge your EOI, you are not required to provide any evidence of your claims. When you apply for a visa, you will however be required to provide substantive evidence of your business background and future business plans in Australia.

Once your EOI is lodged, you cannot go back and change the information provided. You are therefore advised to provide accurate information as you will be required to substantiate the information provided.

It may also be useful to gather as much information as possible whilst waiting for an invitation in order to speed up the overall process, and avoid your invitation being revoked.

This section specifies the criteria applicants need to meet in order to apply.

People who want to apply must:

• obtain nomination from any Australian territory or state
• have been invited to apply for a visa
• pass the health and character criteria (including all family members)
• meet the requirements applicable to the stream you are applying under

Applicants are required to undergo a health examination, further information can be found at: http://www.immi.gov.au/allforms/health-requirements/meeting-health-req.htm

You must meet the character requirements to apply for the Business Talent visa. This involves producing police clearance certificates in each of the countries where you have lived for longer than 12 months in the last 10 years.

The applicant must:

• be under the 55 year age threshold. In some cases this condition may be waived depending on the nature of the business and expected economic benefits it may bring to the nominating state or territory
• obtain a score of at least 60 in the points test
• have a business or a proprietary interest in a business with a minimum annual turnover of $500k AUD for two out of four fiscal years immediately before your visa application invitation date
• a minimum ownership in your nominated business of one of the following:
  • 51% if the business has annual turnover less than $400K AUD
  • 30% if the business has annual turnover exceeding $400K AUD
  • 10% if the business is listed on the stock exchange
• have a proven career in business
• have genuine intensions of continuing in a management role in an Australian business

You must have spent more than half of your time in a managerial role if your business provides technical, professional or trade services. For example, if you have owned an IT consulting business for the last 10 years, you must have spent more than 5 in the last 10 years in a management role.

You and/or your partner must own a minimum of $800k AUD in lawfully obtained personal and business assets. These assets must also be available for transfer to Australia within 2 years of your visa has been approved.

The applicant must:

• be under the 55 year age threshold – in some cases this condition may be waived depending on the nature of the business and expected economic benefits it may bring to the nominating state or territory
• obtain a score of at least 60 in the points test
• exhibit high level management skills relating to the eligible investment or qualifying business
• provide evidence that you have a minimum of three years’ experience of direct involvement in managing at least one eligible investment or qualifying business
• demonstrate a successful history relating to the eligible investment or qualifying business
• be committed to your business or investment activity in Australia after the investment has matured
• aim to live in the state or territory where you have made your designated investment for a minimum of two years

You and/or your partner combined must:

• have managed one of the following for a minimum of one of the five fiscal years immediately prior to being invited to apply:
  • a qualifying business where you and/or your partner owned a minimum 10% share, or
  • eligible investments of at least $1.5m AUD owned by you and/or your partner
• have acquired at least $2.25m AUD in net business, investments and personal assets during the two years immediately prior to being invited to apply, and be available for transfer to Australia within a two year period after the visa is granted
• make a minimum investment of $1.5m AUD in state or territory government security, with liquid funds raised through your qualifying business or eligible investments – this investment must be held for a minimum of four years in the state or territory that nominated you
• not have had any involvement in unacceptable business practices

Note: Income generated from your investment in Australia will be taxed in accordance with Australian taxation law.

To be eligible for the Significant Investor stream, the applicant must make an investment of $5m AUD and hold that investment four a period of at least four years, in one or more of the following:

• Commonwealth, state or territory government bonds
• eligible managed funds – that are restricted to investing in any or all of the following Australian assets:
  • infrastructure projects in Australia
  • cash held by Australian deposit-taking institutions
  • Commonwealth, state or territory government bonds
  • bonds, equity, hybrids or other corporate debt in companies and trusts listed or expected to be listed within 12 months on any Australian stock exchange
  • bonds or term deposits issued by Australian financial institutions
  • real estate in an Australian state or territory
  • agriculture businesses in Australia
  • annuities issued by an Australian registered life company in accordance with section 9 or 12A of the Life Insurance Act 1995
  • loans secured by mortgages over the investments listed above
  • derivatives used for portfolio management and non-speculative purposes which constitute no more than 20 per cent of the total value of the managed fund
  • investment funds that invest in the assets listed above
• invest in privately owned businesses in which you have an ownership interest. If you want to apply for the permanent Business Innovation and Investment visa (subclass 888) in the Significant Investor stream, you must invest in qualifying businesses.

Note: Income generated from your investment in Australia will be taxed in accordance with Australian taxation law.

The applicant must be committed to, or at least intend to:

• live in the state or territory that nominated you
• reside in Australia for a minimum of 160 cumulative days whilst on your provisional Innovation and Investment visa
• carry on your business and investment activities beyond the maturity date of your complying investment

You and/or your partner must have cumulative liquid, legally acquired assets worth at least $5m AUD that are free to be used in your complying investment in Australia.

The Commonwealth of Australia will not be held responsible for losses suffered in your complying investment. You and any relatives aged 18 and over must agree not to bring any legal action against the Commonwealth.

You and/or you partner must not have taken part in inappropriate or unaccepted business or investment practices.

With a provisional Innovation and Investment visa you are entitled to:

• work on establishing or developing a new or existing business, invest in a business in an Australian state or territory, or make a designated investment in a complying investment in Australia
• multiple entry to Australia during the validity period of the visa
• have family members stay with you in Australia
• apply for the permanent Innovation and Investment visa (subclass 888) when you are eligible

From the date your visa is granted it is valid for four years.

If you hold this visa under the Business Innovation or Significant Investor streams, in some cases you may be able to extend your stay by applying for the Extension stream. This will give you additional time to meet the criteria for the permanent Business Innovation and Investment visa (subclass 888).

Note: Applicants holding a Business Innovation and Investment visa under the Investor stream are not eligible for the Extension stream.

Each extension stream allows the visa holder to stay in Australia for an additional two years.

Visa holders under the Business Innovation stream can apply for one extension only, taking the total validity period up to six years.

Visa holders under the Significant Investor stream can apply for a maximum of two extensions, taking the total validity period up to eight years.

Each stream under the Innovation and Investment visa has varying conditions. You are required to fulfill the obligations applicable to you.

Business Innovation stream

Under the Business Innovation stream you are required to:

• acquire and maintain significant ownership interest in a business in Australia
• take a senior management role that involves critical decision making and overall management of the business

Additionally, you will be required to take part in one of the following activities:

• create job opportunities, or maintain employment in Australia
• forge business ties with foreign markets
• export Australian goods
• develop or improve new or existing technology
• create services or produce goods that can be imported by foreign countries
• stimulate competitiveness and commercial activity within the Australian economy

You may be asked to provide information about your business activities in Australia by completing a monitoring survey.

Investor stream

Your designated investment must be maintained for at least four years.

Significant Investor stream

For the duration of your four year visa you are required to continuously hold your complying investments.

You are permitted to change between complying investments on the proviso that:

• withdrawn funds are reinvested into another complying investment within 30 days
• the sum withdrawn is equal to the sum reinvested

Funds reinvested within the 30 day period are considered to be held continuously from the original investment date.