June 2021
The Australian government has announced major changes to the Business Innovation and Investment Program, which will take effect from 1 July 2021 onward.
Closure of Premium Investor, Significant Business History and Venture Capital Entrepreneur streams
In particular, the program will be simplified from nine (9) to four (4) visa streams (Business Innovation, Entrepreneur, Investor and Significant Investor), whilst the Business Innovation Extension, Significant Investor Extension, Premium Investor, Significant Business History and Venture Capital Entrepreneur streams will be closed to new applications. Nonetheless, applications which have already been lodged in this streams (prior to 1 July 2021) will still be processed by the Department.
Subclass 188 visas granted for 5 years
Provisional Business Innovation and Investment (Subclass 188) visa applications lodged from 1 July 2021 onward will be granted for five (5) years instead of the current four (4) years, meaning that Subclass 188 visa holders now have additional time to meet the requirements for transitioning to the permanent Subclass 888 visa. On the other hand, they will be eligible to apply for the Subclass 888 visa after holding a Subclass 188 visa for at least three (3) years, as opposed to the current two (2) year period.
Subclass 188 visa holders in Business Innovation and Significant Investor streams still able to extend Subclass 188 visas
Notwithstanding the closure of the Business Innovation Extension and Significant Investor Extension streams to new Subclass 188 visa applicants, the Australian government has advised that Subclass 188 visa holders in the Business Innovation and Significant Investor streams will still be able to extend their Subclass 188 visas for up to two (2) years if they do not meet the business and residence thresholds within the validity of their initial Subclass 188 visa, as long as they can:
· For Subclass 188 visa holders in the Business Innovation stream – demonstrate a realistic commitment to managing a business that has been actively operating in Australia for the previous two (2) years; or
· For Subclass 188 visa holders in the Significant Investor stream – demonstrate that they continue to maintain their complying significant investment.
The extension of such Subclass 188 visas will purportedly be facilitated through more general provisions in the regulations in the Business Innovation and Significant Investor streams, whilst also subject to additional requirements.
Requirements increased for Business Innovation stream
Most importantly, the requirements for Subclass 188 visa applications in the Business Innovation stream will be increased from 1 July 2021 onward, such that applicants must hold business assets of $1.25 million (up from $800,000) and have an annual turnover of $750,000 (up from $500,000 for at least two (2) out of the last four (4) fiscal years), to prove their business acumen.
$200,000 funding threshold scrapped for Entrepreneur stream
The $200,000 funding threshold required for Subclass 188 visa applications in the Entrepreneur stream will also be scrapped, although applications will still need to be endorsed by a State or Territory government.
To speak with an experienced, specialist immigration lawyer regarding your Australian visa application or options, please contact us on +61 3 9329 8744 or by email at info@erskinerodan.com.au
