Australian Immigration Daily News

Great News

The Department of Immigration and Border Protection’s Annual Report for 2013–14 has reported strong financial performance despite the challenges posed by increased activity and complex operational demands. The report goes on to say that the Significant Investor visa (SIV) exceeded departmental expectations, with $1430 million being injected into Australia’s economy since it commenced in November 2012.

Austrade

Last year Austrade invited submissions from stakeholders on the design of a new complying investment framework for the Significant Investor Visa (SIV) and the design of a new Premium Investor Visa (PIV). In all 68 submissions, including our submission were made.

A set of potential SIV and PIV Policy Options has been distributed for discussion (see attached). Austrade has now sought our comments and suggestions on the options as part of a second round of written submissions.

As independent SIV Investment advisers most of our recommendations are primarily around possible improvements to existing complying SIV investments and suggested on suitable PIV investments options.

The Trade and Investment Minister Andrew Robb was recently quoted as saying thatthe government has concerns that under the current scheme investments are going to low-risk government bonds and as a consequence “Australia is getting nothing out of it”. Whilst we agree in general with this statement the answer is not to swing to the opposite end of the spectrum and forceably channel investment into an area of much higher risk such as venture capital. Venture capital investing is the highest risk that an investor can take.

Yesterday we participated in a webinar that was Austrade. Reference was made to Mr Robb’s statement and there is a very real chance that Government Bonds will be excluded from the list of SIV complying investments.  We don’t see this a being a bad thing. With the Governor of the Reserve Bank and the Australian Treasurer agreeing that the appropriate target for monetary policy in Australia is to achieve an inflation rate of 2–3 per cent, bonds do not offer any real return for an investor.

Other areas discussed included the following possibilities:

·         Managed funds will continue to be the preferred vehicle for SIV investment solutions.

·        The abolition of investment directly into Australian proprietary companies. This is due to the extensive use of said companies to invest into non complying residential property.

·        Outlawing the use of Investor Directed Portfolio Services (IDPS) to house investment into non complying residential property.

·        The abolition of loan back arrangements.

To ensure the success of the SIV and the PIV, Australia must continue to be an attractive investment destination for visa applicants. As well as getting their PR, SIV applicants should also be entitled to an excellent investment experience.

SIV Statistics as at 31 December 2014

News brought to us by Luke Headland and Brett Waller, Private Wealth Managers,  Ord Minnett