I own two businesses in my home country: a small café and a floral shop. Although neither of these two businesses reached a turnover of 500,000 Australian dollars in any year during the past four years, the total turnover of them combined has fulfilled the required amount. Does this arrangement qualify for the Australian business innovation visa (188A)? What documents do I need to provide?
Answers
You are allowed to combine up two businesses to meet the turnover requirement of $500,000 Australian dollars. But please take note that when combining the turnover, there is a
separate requirement on the shareholding as follows: a minimum of 51 percent of share ownership when the turnover of the company is less than $400,000; a minimum of 30 percent of share ownership when the turnover of the company is more than $400,000.
Turnover can be calculated for a maximum of two main businesses, and can include the following revenue: sales, fees, commission, interest, capital gains and government subsidy. The turnover must be calculated for the full fiscal year.
Yes, the combined amount will qualify for the 188A.
More than one business can be used to evidence that the turnover criteria is met. The documents required to prove this can include financial statements and tax documentation, such as annual returns. if your question about the documents extends beyond just evidencing the turnover criteria, then this is too detailed to list here.
Turnover for business innovation visas only applies to your appointed main business(es). You can combine the turnover of two main businesses owned to achieve $500,000. Evidencing of your turnover is usually through your company's verified annual financial statements, business activity statements and the corporate tax return statements you submit for each financial tax year.
To answer your question in order: 1) Yes, conditions apply. 2) There are no set rules for documents. Be guided by the rules of tracing financial data.