Visa to attract foreign investment

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Created on Wednesday, 03 October 2012 16:15

Written by Editorial staff

Australia is embarking on a campaign to attract more foreign investment as the mining boom begins to slow, according to the Sydney Morning Herald.

An Indian family, ranked in the top 80 for the world's richest, has purchased a $26 million stake in Australian iron ore and coal mines.

This comes as other wealthy people from India have purchased mines in Queensland and hotels in Brisbane. These billionaires are part of an increasingly larger scope of people who wish to invest capital in nations other than their own, and Australia is seeing the benefits.

This all comes back to a significant investor visa which will be launched next month. This particular immigration visa can be obtained if a person invests $5 million into Australia. This is due to the fact that countries like India are seeing millionaires made every day and the government is trying to tap into that wealth, which would historically be invested in Britain or North America.

The Department of Immigration and Citizenship says that this program will benefit Australians and those who choose to invest here. 

"The Business Innovation and Investment program is designed to increase entrepreneurial talent and diversify business expertise in Australia.

"It is positioned to target migrants that have a demonstrated history of success in innovation and business and are able to make a significant contribution to the national innovation system and to the Australian economy," said a recent DIAC factsheet on the new visa program.

The SMH reports that analysts are predicting that in five years, Indian investment alone could see $30 billion pumped into the Australian economy. An analyst told the Fairfax publication that the general perception in India is that investment concessions in Australia aren't as generous as other nations; hence why this special visa will be introduced next month.

Currently the combined value of India's private sector wealth is roughly as large as the entire economy of Australia. As a result of this, the government is doing what they can to try and tap into some of this vast abundance.

The treasurer Wayne Swan said recently that Australia's economy is strong, compared to other first world nations. He listed low interest rates, low inflation, unemployment down at about five per cent and a plan for future investment.

The days of Australia being a quarry for the world are slowly coming to an end, as companies like BHP Billiton report major earning shortfalls.