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Australia’s Significant Investor Visas Suspended

Essentially this means that state and territory government’s authority to initiate invitation letters under the current complying investment framework for subclass 188 Significant Investor Visas will end on 24 April. This, according to reports in the Australian media this week.

Australia’S Significant Investor Visas Suspended

The Australian reports that this means that there is now just a limited window of opportunity for people hoping to make an application under the current investment framework. They will have to have their application completed by 23 April or wait until the new framework is finalised and in operation which is expected to be from 01 July.

The visa is for applicants intending to make a significant investment in Australia for a period of at least four years and leads to permanent residency with the option to extend the initial four year term of the visa. Applicants need to have a genuine intention to reside in the state or territory whose government agency nominates them.

People applying for a Significant Investor visa lodge an Expression of Interest with the Australian Department of Immigration and Border Control (DIBP) and then lodge a nomination with their preferred state or territory government.

But changes to the complying investment framework means that certain visa applications will need to wait until 01 July when it comes into being. A proposal for the framework has been published and includes a stipulation that 20% of the $5 million of investment must go into early stage, growth capital investments through approved venture capital funds, reads the article in The Australian.

It also proposes that at least 30% of the applicant’s investment must go into emerging listed companies through managed funds investing in small Australian stock exchange listed companies.

It is understood that the framework will reinforce the existing rules banning investment in residential real estate and introduce new measures to clamp down on indirect investment in this sector although a portion of funds could into real estate via managed funds.

“This announcement has introduced a limited window of opportunity for people hoping to make an application under the current investment framework. Those with applications in preparation not able to meet this timetable may need to consider an investment strategy under the new still to be finalised framework scheduled to take effect from 01 July,” said a KPMG spokesman.

Source: The Australian

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