The document discusses Australia's Significant Investor Visa (SIV) program. The SIV program allows high net worth individuals to obtain a provisional visa by investing a minimum of $5 million AUD in eligible Australian investments. Eligible investments include government bonds, managed funds, and private companies. The provisional visa has an initial 4 year term and can be extended for up to 8 additional years. After the required residency period, individuals can apply for permanent residency. The document provides details on the SIV application process, eligible investment options, tax considerations, and contact information for an advisory firm that can assist with SIV applications and compliance.

1. SIGNIFICANT INVESTOR VISA
29 May 2013
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2. Notice
• This document is provided for informational
purposes only and should not be relied upon as
legal, tax, commercial and/or investment
advice. The information provided is current as
at the date contained herein. No update will be
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Wealth Manager –
Australian Financial
Services Licensee
Tax services –
Australian tax agent
Advisory –
Authorised Corporate
Representative

3. How can we help?
Wealth Manager –
Australian Financial
Services Licensee
Tax services –
Australian tax agent
Advisory –
Authorised Corporate
Representative
Application Ongoing
Investment compliance advice Investment monitoring
Investment sourcing and/or review Re-allocating/re-weighting of investment(s) to meet your
financial circumstances
Due diligence Directorship services
Tax advisory on initial investment and for interposed
investment holding entity
Annual tax compliance and tax advisory on divestment
and re-investment
Setting up interposed investment holding entity
Designing and implementing an ‘eligible’ investment plan
Drafting of business plan for private company investment

4. Background
• In November 2012, the Australian government
has implemented reforms to the Australian
Migration program. The Business Skills visas
have been replaced by the New Business
Innovation and Investment Program.
• Broadly, the changes will streamline the
number of visa subclasses to 3 main
categories, being:
– Business talent;
– Business innovation and investment; and
– Business innovation and investment (no
points tested).
• The aim is twofold: 1) increase foreign capital
mobility into the Australian economy and 2)
attract entrepreneurs with innovative
businesses.
• Each category has their own requirements that
need to be met. However, the categories
broadly revolve around business ventures,
innovation and investment contributions.
• Of particular note, the Australian government
has introduced a visa for high net worth and
ultra-high net worth individuals (“significant
investors”) who wish to obtain residency in
Australia. One of the main requirements is the
applicant must be able to commit a minimum of
AUD $5 million into Australian complying
investments whilst holding the subclass 188
visa.
• In addition, the Australian government is
encouraging/facilitating the relocation of
entrepreneurs where the latter have been
funded by a member of the Australian Venture
Capital Association Limited with a minimum of
AUD $1 million investment having been made.

5. Visa Pathways
Business Innovation
& Investment
(subclass 188)
Business Talent
(subclass 132)
Business Innovation
stream
(188A)
Investor stream
(188B)
Significant Investor
stream
(188C)
Provisional visas
Investment inflow
Business Talent
(132A)
Venture Capital
Entrepreneur
(132B)
Skills inflow
Permanent visas
(subclass 888)
Permanent
visas
Min. 4 years

6. SIGNIFICANT INVESTOR
REGIME
Wealth Manager –
Australian Financial
Services Licensee
Tax services –
Australian tax agent
Advisory –
Authorised Corporate
Representative

7. Overview
Concessional treatment:
• No English test required;
• No upper age limit;
• No innovation points test;
and
• Minimal Australian stay
required during the
provisional visa period
Investment specifications:
• A minimum of AUD 5M to
be invested in Australian
investments; and
• Investments are limited
to:
• Federal/State/
Territory bonds;
• ASIC regulated
unlisted managed
funds; and/or
• Australian private
companies
SIV
applicant
Visa covers spouse,
children and any other
dependent of the SIV
applicant.

8. Process
Expression of Interest (“EOI”)
Via SkillSelect (DIAC)
Apply for State Nomination
Provision of investment support documentations
Invitation to lodge formal visa application
Only if nomination has been successful
Investment(s) to be finalised prior to grant of visa

9. Statistics
*Based on public information available as at 28/05/2013; more approvals are
expected to follow.
1
Approval
170
Applications
279
Invitations
384
EOI

10. Term
• Term for the provisional visa is a minimum of 4 years:
– Applicants can apply for the subclass 888 permanent visa after that time; or
– Extend the provisional visa by a maximum of 4 years (2x2)
Provisional visa
4 yr term
1st extension
2 yr term
2nd extension
2 yr term
Permanent visa
(888)

11. Complying investments
SIV
visa
holder
Federal/State/Territory
bonds
Unlisted ASIC
regulated managed
funds
Australian private
companies
Can also hold interest via interposed
trust/company (rather than directly)

12. Semi-Government bonds
State/Territory Bonds Term Compulsory
ACT N/A N/A N/A
New South Wales Waratah bonds 4 years Yes(1)
Northern Territory Territory bonds 1-5 year(s) No
Queensland QTC bonds 4 years No
South Australia SAFA bonds 1-4 year(s) No
Tasmania TSG bonds 5/10 years No
Victoria Govt. bonds (VIC) 4 years(2) No
Western Australia WA State bonds Various No
(1) Minimum of AUD1.5M
(2) Buyback mechanism on offer

13. Managed funds
Managed
funds
Australian
Infra
projects
Cash
deposited @
ADIs
Govt/
Semi-govt
bonds
Listed debt/
equity/
hybrid
Bonds/term
deposits by
Australian
FI
Australian
real property
Australian
agribusiness

14. Real property investment
SIV
visa
holder
Managed
fund
SIV
visa
holder
Private
company
SIV
visa
holder
Managed
fund
Not allowed Not allowed

15. Private company
SIV
visa
holder
Private
company
Active
& qualifying
business
Can be an existing or a
startup company
Equity interest onlyMatters to consider,
including:
• Business plan for
assessment of
investment and for visa
application;
• Valuation on entry & exit;
• Shareholders’
Agreement;
• Board/observer seat;
• Alternate directorship;
• Management reporting &
accountability; and
• Exit flexibility

16. Food for thoughts
Tax Miscellaneous
Australian tax residency classification Quality of assets
Interaction of foreign tax laws Risk appetite & returns expectations
Application of double tax treaty (if any) Supplementary semi-government requirements
After-taxed returns on investment(s) Investment lock-in period
Re-allocation of investment(s) – disposal for tax purposes Liquidity/exit strategy
Australian tax withholding regime(s) Ongoing compliance with visa conditions
Interposed investment holding vehicles & tax leakage Start with the end in mind: requirements for subclass 888
Transitioning into subclass 888 & tax implications FIRB

17. Contact details
• Amirthan Arasaratnam
• amirthan@pennampartners.com
• +61 433 256 936
• Yanese Chellapen
• yanese@pennampartners.com
• +61 38635 1987
• www.evermoremoney.com.au
• www.macheladvisory.com.au
• www.pennampartners.com
• Level 10
• 530 Collins Street
• Melbourne VIC 3000
• Australia
Wealth Manager –
Australian Financial
Services Licensee
Tax services –
Australian tax agent
Advisory –
Authorised Corporate
Representative