With the plan to double the annual quota for the business innovation and investment visas, how would the Australian authorities reform the program? What changes can potential investors expect?
The major purpose of increasing quota for the business innovation and investment visas is to ensure assistance to the country’s ongoing economic recovery. Therefore we can expect that the State/Territory governments will be nominating the applicants who are investing in areas that will boost the state/territory’s economy and support of post-Covid-19 recovery and boost local jobs. Also, the visa fee is expected to increase in July 2021.
Following the Federal budget announced on Oct. 6, 2020, the government has increased the number of places available under the business innovation and investment program (BIIP) to 13,500. This is approximately double the previous level. The intention is to encourage business and investor applicants to move to Australia as this is understood to result in job creation in Australia. At the same time, the places available under general skilled migration have been reduced, further emphasizing the focus on job creation through business and investment migration rather then bringing in skilled employees. I expected the requirements for the program to be increased this year, but this has been delayed due to the COVID-19 situation and will be put into effect on July 1, 2021. The likely impact will be increased available for places in the interim period to end June 2020, and we do expect to see an increase as applicants rush to lodge applications before the changes to lift requirements are implemented on July 1, 2021. We don't know what the changes will be, but they will likely involve an increase in thresholds for investment and business visas, and a restructure of the SIV options (currently $3 million managed fund, $500,000 in venture capital funds, and $1.5 million in emerging shares fund.
Changes to the program are unknown at this stage, but they may increase the required investment amount and look for business owners with higher turnover and more assets in order to identify higher-value investors, business owners, and entrepreneurs.
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