The value of the complying significant investment might fluctuate throughout the duration of the visa. This does not affect compliance if the original investment was made for the amount of 5 million Australian dollars.
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What are the requirements for the performance of my SIV investment?
My wife and I live in China and are taking a close look at the Australian SIV program. The world markets seem a little volatile at the moment, and I worry that an economic downturn could greatly reduce the value of my investment. Does my SIV investment have to maintain or exceed its value? If the value of our investment drops below 5 million Australian dollars, would there be any negative consequences? Would we have to invest more money?
Answers
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There is no requirement that it performs well, just the period of time you keep your investment in Australia and in a portfolio composition that are "complying investments". Risk may be mitigated by making informed investment decisions. Usually, you have that intelligence if you were able to generate such a large wealth. Some practical considerations that may ease your mind are: 1. You are coming to live in Australia. So that wealth will continue to be an onshore fund for you to access. 2. The Australian dollar is quite low right now. This is a great time for you to enter the market as an investor compared to investors a few years ago. 3. From such investments, the requirement of stay is very flexible for you and your family in order to gain PR. 4. Risk will always be apparent. However, there are also chances for your investment to grow into profit. We advise you to use an investment professional to maximize your investment potential.
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The SIV investment you make at the time of application will be at the value specified at a minimum $5 million Australian dollars on the date you make the investment. You are required to show proof of having transferred and confirmed the complying investments at or before the time of visa decision. So in that sense, the value of your investment is locked in at that date of transfer of funds and you won't need to add any more funds in the event of your currency vaue depreciating. Of course, the state nominating you would welcome any further additional funds you want to invest in other areas, but it is not compulsory.
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You are required to hold the investment funds for at least four years. During this period you are not assessed on the success or performance on the investment and you do not need to invest further funds if the investment decreases in value due to market exposure or genuine business losses.