Significant Investor Visa (SIV) - Migration Alliance & Expat Advisors Community
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Liana Allan, Founder of Migration Alliance and registered migration agent with VisaCorp will be presenting in Shanghai on 29 April, 2016. Partnering with Stacey Martin, Founder of Expat Advisors Community and SIV Specialist with NAB, this presentation provides an overview of the new SIV investment framework for those looking to this pathway to Australian residency.
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Significant Investor Visa (SIV) - Migration Alliance & Expat Advisors Community
- 1. Principal, VisaCorp Founder, Migration Alliance Sydney, Australia Liana Allan
- 2. Principal, VisaCorp Founder, Migration Alliance Sydney, Australia Liana Allan
- 3. AUSTRALIAIS A TOP DESTINATION FOR IMMIGRATION
- 4. AUSTRALIAIS A TOP DESTINATION FOR IMMIGRATION
- 5. MIGRATION ALLIACE – INDUSTRY BODY Migration Alliance partnerships include: www.migrationalliance.com.au
- 6. THE SIGNIFICANT INVESTOR VISA MIGRATION PROGRAM PATHWAY TO AUSTRALIAN PERMANENT RESIDENCY Relaxed age and language requirements Required to spend 40 days pa in Australia INVESTMENT OF AUD 5 MILLION OVER 4 YEARS Managed funds into Australian investments, and 10% allocated to venture capital $$$$$
- 7. SIGNIFICANT INVESTOR VISA – RESULTS TO DATE Source: DIBP as at February, 2016 Expressions of interest 2,573 172 Invitations issued 1,972 126 Applications lodged 1,679 98 Visas granted* 1,259 10 *includes 380 granted after 1 July 2015 PROGRAM STATISTICS China 88% Hong Kong 3% Balance from South Africa, Malaysia, Japan & Vietnam APPLICANTS FROM: Victoria 58% NSW 32% Queensland 5% Western Australia 3% South Australia 2% APPLYING TO: SIV 1 SIV 2
- 8. PRIVATE COMPANIES FUNDS WITH “LOAN BACKS” AUSTRALIAN MANAGED FUNDS Cash and term deposits, government bonds, share and property funds COMPLYING INVESTMENT REGIME TO 24 APRIL, 2015 STATE GOVERNMENT BONDS
- 9. “Our aim, as part of our broader competitiveness agenda, is to attract more investment into Australia that makes a material difference to supporting sustainable growth, productivity and job creation. We are keen to attract additional investment which supports innovation and which provide new sources of growth capital.” Andrew Robb Minister for Trade and Investment, October 2014 NEW INVESTMENT FRAMEWORK
- 10. “Our aim, as part of our broader competitiveness agenda, is to attract more investment into Australia that makes a material difference to supporting sustainable growth, productivity and job creation. We are keen to attract additional investment which supports innovation and which provide new sources of growth capital.” Andrew Robb Minister for Trade and Investment, October 2014 NEW INVESTMENT FRAMEWORK
- 13. VENTURE CAPITAL VENTURE CAPITAL 10% $500,000INTO ESVCLP OR VCLP Funding for start-ups and early expansion businesses in technology, life sciences and clean energy Invest in Australian business worth less than $50M ($250M for VCLP) Investment into companies over first few years, then look to sell or list. WHY THIS SECTOR? WHAT THEY DO? HOW YOU INVEST?
- 14. SMALL/ MICRO CAPITAL SMALL COMPANIES 30% $1,500,000IN EMERGING COMPANIES Australian listed equities with a market capitalisation of less than $500M Minimum of 20 stocks in the portfolio, with no stock greater than 10%
- 15. SMALL/ MICRO CAPITAL SMALL COMPANIES 30% $1,500,000IN EMERGING COMPANIES Australian listed equities with a market capitalisation of less than $500M Minimum of 20 stocks in the portfolio, with no stock greater than 10%
- 16. BALANCING INVESTMENTS BALANCING INVESTMENTS 60% Corporate bonds Listed company shares Property (max 10% residential) $
- 17. BALANCING INVESTMENTS BALANCING INVESTMENTS 60% Corporate bonds Listed company shares Property (max 10% residential) $
- 18. CONSTRUCTING SIV COMPLIANT INVESTMENT PORTFOLIOS BALANCING INVESTMENTS AND EMERGING SHARES $1.5 M managed funds investing in small and emerging company shares $3.0 M managed funds investing in corporate bonds, property and/or shares VENTURE CAPITAL LIMITED PARTNERSHIPS $0.5 M into registered funds on AusIndustry website Can invest in bank account for up to 12 months while identifying fund options
- 21. FOR RESIDENCY AFTER 12 MONTHS $15,000,000 Entrepreneurs invited by Austrade: - Philanthropic donations to medicine, health and agriculture PIVPREMIUM INVESTOR VISA - SIV complying investments and direct investment including businesses
- 22. Migration Agent Tax agent & accounting advice Wealth Advisor Banking Managed fund portfolio SIV APPLICANT & SPOUSE WHAT SERVICES DO SIV APPLICANTS NEED? Business & property advice
- 23. WORKING TOGETHER FOR SIV APPLICANTS Liana Allan, VisaCorp Registered Agent Ph: +61 (0) 405 188 262 Email: liana@visacorp.com.au Stacey Martin, NAB SIV Wealth Advisor Ph: +61 (0) 413 127 677 Email: stacey.martin@nab.com.au WeChat: staceym97 MIGRATION INVESTMENTS www.expatadvisorscommunity.com.au www.migrationalliance.com.au
- 24. SIV PROFESSIONAL SERVICES BOOKLET SMOOTH ROAD TO TRAVEL – CHINA TO AUSTRALIA By Stacey Martin, Founder of Expat Advisors Community with contributing authors including Migration Alliance, Pitcher Partners, Shine Wing, Mills Oakley, Berlitz, Ni Hao Global, Succession Plus and various NAB subject matter experts. Download from: www.expatadvisorscommunity.com.au Produced by:
Editor's Notes
- When greeting Chinese clients in our Sydney office, I generally find them gazing out the window, marvelling at our harbour bridge, opera house and clear blue sky! Having been to Hong Kong and China on a number of business trips, I have a new appreciation of our enviable Australian lifestyle. Why Australia? Australia is relatively relaxed, safe and secure, We have a highly regulated financial system and rule of law, It is a destination of choice for many from Asia, to study, holiday, and work, .
- Today we will be covering: Why – why the government has recently changed the Significant Investor Visa rules What – outline the new investment categories, including venture capital and emerging companies How – and look at how migration agents and investment advisors work together with other Australian professionals to provide a complete package for applicants looking to migrate to Australia.
- Liana to provide overview of MA, benefits and partnerships - Importance of dealing with a registered migration agent!
- There are a rang elf pathway s to Australian residency: Skilled migration Family reunion Business visas Distinguished talent (liana to explain) The objective of the Significant Investor Visa program is to add to Australia’s economic prosperity, and particularly the government’s innovation agenda. For applicants, the benefit to the Significant Investor Visa migration program is there is no English requirement and there is no upper age limit. Also, as there is only a requirement to spend a minimum of 40days pa or 160 days in total, applicants can continue to run their businesses in China. The term can also be extend twice for 2 years, taking temporary residency to a total of 8 years.
- The SIV migration program started in November 2012. Applicants can apply for permanent residency after four years, having invested $5M in complying investments. It had been running at around 50 approvals per month, with 90% coming from China, mostly going to Victoria, then New South Wales. SIV 2 Understandably, with the new investment framework that we will discuss in a moment, applications have slowed as applicants and the industry get used to the new rules, and in the meantime the government has been clearing the backlog of applications under SIV1.
- Complying investments under “SIV1” were: State Government bonds – initially mandated in NSW, and optional in Victoria Private businesses – relatively low numbers Australian managed funds – across Australian shares, government and corporate ponds and property providing income and capital growth to applicants. Because the primary purpose is to the secure the visa, investors were understandably extremely conservative, with protection of capital their main concern.
- Last October, Trade Minister Andrew Rob, announced they would like to attract more investment into Australia for sustainable growth, productivity and jobs, and support innovation.
- Under “SIV2” there is a mandatory requirements to invest 10% in venture capital , 30% in small and emerging companies, and with the remainder applicants can invest in a range of eligible investments The Australian Venture Capital Limited partnership program has been selected , with eligible funds registered with the government body, AusIndustry $1.5M into funds investing in small and emerging companies listed on an Australian exchange Balancing investment options include Australian corporate bonds (not government bonds), Australian shares, and Australian property funds or Listed Investment companies.
- Applicants are required to invest 10% of the $5M into venture capital. Underlying investments are predominantly technology, and some medical research and clean energy. Early Stage Venture Capital is seed funding for start-ups, supporting companies in their early stage of development, while Later Stage Venture Capital provides additional funds to help companies with existing businesses. The objective of these funds is to increase the value of the businesses so they can be sold or listed on the stock exchange. Venture capital is very long term, generally 10 years. Funds are raised to purchase companies, grow them, and ideally sell for a profit. Whilst residency from the SIV can be granted after 4 years, applicants need to understand the venture capital will have to stay in place much longer.
- $1.5M is required to go into managed funds that buy listed companies outside the top 300 on the Australian stock exchange. Investment in small companies and the balancing items must be through managed funds or listed investment companies. Australia is one of the most stringent regulatory regimes in the world. Financial services products are regulated by the Australian Securities and Investments Commission. The fund manage must be a regulated Australian public company and hold an Australian Financial Services Licence.
- The balancing investment options for the remaining $3M are managed funds that invest in: Australian corporate bonds – these are fixed interest investments, essentially lending money to Australian public companies Australian shares – companies listed on the Australian stock exchange and Australian property funds – investments in commercial property, shopping centres and hotels. Residential property is not permitted, can only be incidental to a maximum of 10%.
- Venture Capital For the venture capital component, applicants can select from a range of funds listed on the AusIndustry government website. Many of those looking to migrate to Australia have made their wealth through their own entrepreneurial activities. Funds most likely to be of most interest will be those that are in industries and sectors that are familiar to their business background or areas of interest, and could potentially be applied in China. In the meantime, the $500,000 can be held in escrow in an Australian bank account Managed Investments For the $4.5M, applicants can obtain advice from a licenced Australian financial advisor. They can provide advice on a range of complying investments to suit applicants individual risk profiles and investment preferences within the constraints of the SIV program. Complying Fund Certificate Your financial advisor can arrange complying fund certificate from each of the investment managers which are submitted with your DIBP application to complete the grant process. .
- The PIV provides a pathway to permanent residency after 12 months through investment of $15M. It will only be available to a small number of individuals at the invitation of the Australian Government who will be highly selective with potential recipients to be nominated by Austrade on approved criteria based on entrepreneurial skill or talent and ongoing benefit to Australia. From an investment perspective, PIV Applicants can in addition to managed investments, also by direct assets including qualifying Australian businesses. Alternatively they can make a philanthropic contribution approved by a State or Territory Government agency for part or all of the $15M, for the 12 month pathway to permanent residency.
- For intending migrants, with the new requirement to invest in higher risk sectors, it is even more important they get the right advice, from the right professional, at the right time! From migration to determine the appropriate visa pathway, to setting up a bank account To arranging appropriate investments, including ongoing management and monitoring, To considering the impact of tax when permanent residency is granted And assistance with aspects such as finding a home to live in, schools for the kids and business intestates.
- At Migration Alliance, we have 4,000 members and around 5% have been working with Significant Investor Visa applicants. We can make an introduce t to experts who can assist with determining the most appropriate pathway for migration to Australia. We partner with a range of industry professionals. Our banking partner NAB has an SIV Concierge proposition across banking, wealth advice and investment ,and property and business funding. NAB’s SIV Chair, Stacey Martin, also runs Expat Advisors Community, a network of professionals with internationally connected clients.
- You can download Stacey’s SIV educational booklet from the expat advisors community website . (I’ll make sure you have a few copies) - On page 7 I provide an overview of the SIV application process and why it is important to use a registered migration agent. - part 2, it looks at buying property and the FIRB requirements - And Part 3 covers relocation, schooling and culture. We look forward to discussing the SIV program with you further and making your journey from China to Australian as smooth as possible.