Prime Minister Tony Abbot, has announced that the government will introduce a new “Premium Investor Visa” offering a faster 12 month pathway to permanent residency, for those meeting a A$15 million investment threshold.

The announcement was made with the release of the government’s National Industry Investment and Competitiveness Agenda which commits $400 million towards ‘industry growth centres’ and sets out a series of strategies that promote industry led growth.

Key changes in respect of migration reform, include having SIV prospects target their money at areas of priority to the Australian economy. Currently the SIV grants foreigners with $5 million to invest over four years a permanent visa.

According to the Australian Financial Review, the SIV will be altered to push money towards certain areas of the economy. These are likely to be the ‘growth centres’. The government has chosen to focus on five sectors for its growth centres: oil and gas, mining technology, medical technology and pharmaceuticals, food and agribusiness and advanced manufacturing, where it says Australia has a “natural advantage” it can build on.

The 457 visa program will also be reformed, with the process of sponsorship, nomination and visa applications for “low risk” applicants streamlined, English language requirements made more flexible, and the sponsorship approval period increased from 12 to 18 months for start-up businesses.

The Australian reports that Australia’s appeal as a foreign investment destination has taken a hit in recent years from a variety of factors, according to a paper from the vice-president of the peak Australia-Japan business body.

The Australian says the report claims the divisive political climate, minor party control of the Senate, NSW corruption scandals and the rise of community campaigns could combine with the high currency, high wages and red and green tape to turn off Japanese investors.

The report comes from the Australia Japan Business Co-operation Committee.

Follow these links for further information:

http://www.dpmc.gov.au/publications/Industry_Innovation_and_Competitiveness_Agenda/significant_investor_visa.cfm

http://www.dpmc.gov.au/publications/Industry_Innovation_and_Competitiveness_Agenda/457_visa.cfm