The Abbott government is reviewing and plans to expand the significant investment visa program, which has granted four-year visas to 116 foreigners in just over a year. The review will seek ways of speeding up approvals and will consider expanding the assets the $5 million can be invested in beyond bond and commercial property funds, possibly to venture capital and start-ups, according to Business Review Weekly.

There are expectations that the review of the program could open up a direct pathway for foreign capital investment into start-ups. Analysts say the current program is too narrow as it largely restricts investments to commercial property and bonds.

“One of the biggest shortcomings of the current regime is that the list of eligible asset classes does not include intermediated investments through private equity and venture capital funds,” says Yasser El-Ansary of the Australian Private Equity & Venture Capital Association Limited in an interview with Smart Startups.

BRW reports that Assistant Minister for Immigration and Border Protection Michaelia Cash said the review could result in the introduction of permanent residency visas for investment migrants. The review is unlikely to allow investment in houses and apartments because of the political repercussions from the fear of Australian buyers being squeezed out of the market.

 “We recognise there are significant implementation issues that are currently holding up the progress of this program and we want to get this review under way to send a clear message that Australia is open for business on this visa,” Senator Cash said.

The visa review was praised by venture capitalist Mark Carnegie who said the visas should provide more flexibility for Chinese capital to flow into Australian technology start-ups.

The review follows comments made by the chairman of the Foreign Investment Review Board, Brian Wilson, who visited China last year.

“The visit [to China] included a focus on broadening our constructive ­investment dialogue into regions not previously visited, allowing for a more extensive appreciation of Chinese investors, their investment prospects and their understanding of our foreign investment regime,” Mr Wilson said.

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