Purpose
IMMI 15/100 specifies the investments permitted for certain streams for Subclass 188 (Business Innovation and Investment (Provisional)) visa and Subclass 888 (Business Innovation and Investment (Permanent)) visa under Australia’s Business Innovation and Investment Program (BIIP). One of the primary criteria for these streams was that an applicant has made a complying investment of a minimum total amount. IMMI 15/100 currently sets out the requirements for complying investments under the streams, known as complying significant investments (see regulation 5.19C of the Regulations) and complying premium investments (see regulation 5.19D of the Regulations).
On 1 July 2021, the Regulations were amended by the Home Affairs Legislation Amendment (2021 Measures No. 1) Regulations 2021. The BIIP component of the migration program aims to bring to Australia migrants with business, investment and entrepreneurial skills that will benefit the Australian economy. The amendments will streamline and improve the BIIP to ensure that it is well-placed to support Australia’s post-COVID-19 economic recovery by maximising the impact of high value investors, business owners and entrepreneurs.
The amended Regulations will change the current designated investment requirement for the Investor stream (based on passive investment in State and Territory government security) to a requirement to make a complying significant investment which will be overhauled to direct investments into areas where there is a greater need and greater impact on Australia’s economic growth by directly helping emerging and start-up companies. Subclass 188 and related provisions will be amended to increase the investment required for the Investor stream from at least $1,500,000 to at least $2,500,000.
Furthermore, amendments will also be made to close three underperforming streams, including the Premium Investor stream (amendments to Subclass 188). As a result of the amendments, the reference to complying premium investment (regulation 5.19D of the Regulations) will no longer be relevant in Subclass 188 when the Premium Investor stream is closed from 1 July 2021 (see amendments to item 1202B of Schedule 1 to the Regulations). However, the term complying premium investment and regulation 5.19D of the Regulations will continue to be relevant to applicants for a Subclass 888 visa who hold a Subclass 188 visa in the Premium Investor stream that was granted or applied for before 1 July 2021.
Subregulation 5.19C(1) of the Regulations provides that an investment by a person (the investor) is a complying significant investment if all of the requirements in the Regulations are met. Subregulation 5.19C(6) of the Regulations provides that the Minister may, by legislative instrument, specify requirements for subregulation 5.19C(5), namely to define the scope of a complying significant investment.
The purpose of the instrument is to amend IMMI 15/100 to specify the scope and requirements of complying significant investments that are required as a result of the amendments made to the Regulations.
The instrument also addresses feedback identified in a review conducted by the Department of Home Affairs in consultation with the Australian Trade and Investment Commission (Austrade). The items the instrument address include several technical issues considered in the review regarding exchange traded funds and the use of derivatives for risk management purposes. The instrument also clarifies the eligibility of venture capital investments via fund of fund structures.
Source: LIN21041.pdf and LIN21041-Explanatory-Statement.pdf
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