Some investment analysts are saying that the changes to the SIV program which are set to be announced today could have a deterrent effect on the program with investors likely to shop elsewhere for their visa.
Details of the revamped Significant Investor Visa program are set to be released today, according to a report in The Australian. Under the changes, investors will be expected to invest about half of their funds in high-risk investments.
It is expected that at least $2.5 million of the $5million will have to go into investments in start-up and emerging companies, notes the report, as the new program wants to ‘divert the billions of dollars raised from the scheme away from ultra-safe investments such as government bonds and commercial property to more risky areas such as the start-up sector, which is cash-starved.”
“Foreign investors will need to invest at least half a million dollars, or 10 per cent of their total investment, in eligible Australian venture capital or growth private equity funds. Investors also need to set aside at least $1.5m for investing in ASX-listed small companies.”
The report states that there has been push-back from the property sector and some fund managers are expected to lose business as a result of the new change.
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