Subclass 188B:
Investor Visa Australia

Permanent Residency Through Investor Visa Melbourne, Perth and Adelaide

This investor visa Australia stream is available to skilled and experienced investors or business operators looking to achieve permanent residency through investment in Australia. Eligible applicants are required to invest $1,500,000 in an interest bearing bond issued by an Australian State or Territory government authority. Maturity of the investment must not be less than 4 years from its date of issue. These investments are referred to as “designated investment

As is the case for all streams of Subclass 188 visas, applicants must be nominated by a State or Territory authority. The nominations are predicated on a separate points test and the specific criteria set by the relevant nominating authority.

investor visa Australia

Primary Criteria

To qualify under this stream, a primary applicant must satisfy all of the following:
  • Applicant has achieved a minimum score of 65 on the Schedule 7A points test, and was invited, in writing, by the Minister to apply for the visa;
  • Applicant has not turned 55 at the time of invitation, or is proposing to establish or participate in business or investment activity that the nominating State or Territory government authority has determined is of exceptional economic benefit to the State or Territory in which the authority is located;
  • Applicant has overall had a successful record of eligible investment activity or qualifying business activity;
  • Applicant has had a total of at least 3 years experience of direct involvement in managing one or more qualifying business or eligible investments. Applicant must also have demonstrated a high level of management skill in relation to the eligible investment or qualifying business activity;
  • Applicant maintained direct involvement in managing a qualifying business and had an ownership interest of at least 10% of the total value of the business. This must be for at least one of the 5 fiscal years immediately before the time of invitation;
  • Applicant maintained direct involvement in managing his or her eligible investments and the total net value of the eligible investments was at least $1,500,000 for at least one of the 5 fiscal years immediately before the time of invitation;
  • Applicant has made a designated investment of at least $1,500,000 in the State or Territory in which the nominating State or Territory government authority is located;
  • Applicant’s net value of the business and personal assets was at least $2,250,000 for the 2 fiscal years immediately before the time of invitation;
  • Applicant’s business and personal assets are lawfully acquired and are available for transfer to Australia within 2 years after the grant of a Subclass 188 visa;
  • Applicant genuinely has a realistic commitment to continue to maintain business or investment activity in Australia after the designated investment matures;
  • Applicant has a genuine intention to reside for at least 2 years in the State or Territory in which he or she made the designated investment application. ​
  • Age

    Generally, applicants must not have turned 55 at the time of invitation in order to qualify for the business and innovation stream. Nevertheless, State and Territory authorities reserve the discretion to afford waiver where the applicant’s Australian business is deemed to be of significant economic benefit to said State or Territory.

    The discretion of States and Territories to accept age-restricted applicants on the grounds of “exceptional economic benefit” is largely unfettered. Policy supports deference to the recommendation of State or Territory authorities, which in turn affords these authorities enormous discretion in the exercise of this power. The State and Territory authorities provide minimal guidance on circumstances in which they will recommend waiver of age restrictions.

    Designated Investment

    The core requirement of this stream involves designated investment. The criteria being a minimum sum of $1,500,000 for the maturity term of 4 years, in a security issued by an Australian State or Territory government authority. The investment must be maintained throughout the visa period.
    It is important to note that the funds for designated investment have been derived from the applicant’s business or investment activities. Other funds, such as those sourced from windfall gains, may not be allowed. Sources of funds must be produced and submitted in evidence as part of the visa application. ​

    The securities and issuing authorities for Subclass 188B visas are summarised as below:
  • VIC: Treasury Corporation of Victoria
  • NSW: New South Wales Treasury Corporation
  • QLD: Queensland Treasury Corporation
  • TAS: Tasmanian Public Finance Corporation
  • NT: Northern Territory Treasury Corporation
  • WA: Western Australian Treasury Corporation
  • SA: South Australian Government Financing Authority
  • Management Experience

    Applicants must demonstrate a high level of management skills. This is through a minimum of 3 years experience in direct management of one or more qualifying business or eligible investment. The test is subjective and based on the nature of the applicant’s involvement with his or her business or investment.

    Elements indicative of direct high-level management of a business include:
  • Exercising responsibility over employees;
  • Responsibility for strategic policy development;
  • Exercising the skills to adapt to the Australian business or investment environment;
  • Business did not merely generate profits purely via appreciation of the assets.
  • Elements indicative of direct high-level management of an investment include:
  • Active evaluation on performance of assets against other potential investments;
  • Degree of responsibility in the making of strategic decisions, including retention or sale of assets.
  • Successful Record of Investment or Business Activities

    In determining success of business or investment, the Department will adopt a holistic approach in assessing the entire business career of the applicant. Factors which may indicate failure of business and investment, or attract further scrutiny from the Department, include:
  • Disposing of a business or investment at a loss;
  • Patterns of decreasing profitability under the applicant’s management;
  • Portfolio with patterns of decreasing profitability;
  • Business with a record of trading losses;
  • History of bankruptcy;
  • Extensive involvement in businesses which have been subject to insolvency, receivership or liquidation;
  • Recent trading losses stemming from the applicant’s decisions, which had the effect of rendering the business unsuccessful.
  • Where there has been a loss in the past business or investment, the onus is placed on the applicant to provide explanation and prove it was due to extenuating circumstances for the failures. Examples of these include but are not limited to; recessions, adverse market conditions, sudden change in trade regimes.

    Recent Direct Involvement

    Applicants will need to provide a statement outlining their active management of a qualifying business or eligible investments. This statement, and evidence being annexed to it, must establish active management for 1 year within the last 5 fiscal years before the time of invitation. Applicants may select a year for which they are able to produce the most comprehensive evidence of their investment or business activities.
    Applicants should demonstrate an ownership interest of at least 10% of the total value of the business in case of a qualifying business. If eligible investments, their total net value should have been more than $1,500,000.

    Personal and Business Assets

    As part of the visa application, it is necessary to establish that applicants possess sufficient funds for designated investment and settlement. The total net amount, that is required at the time of the invitation, is at least $2,250,000 for the 2 fiscal years immediately before the time of invitation. It is to be noted that this figure is calculated as net business and personal assets less any liabilities. This is not limited to the assets of the main business, but other assets of the applicant in totality.
    The assets which have been calculated as the grounds for the net value must be those that were of sufficient liquidity to be transferred to Australia within 2 years of the visa grant. The value of property should only be included in the case that it would be liquidated.

    Lawful Acquisition of Assets

    In the processes of State nomination and visa application, Applicants need to substantiate origins of their disclosed assets in order to demonstrate lawful ownership and the availability for transfer to Australia.

    Intention to Reside in the Nominating State

    Whilst the nomination continues to be in force, applicants must intend to reside for at least 2 years in the nominating State or Territory in which he or she made the designated investment application.

    Intention to Continue Business or Investment in Australia

    Applicants must demonstrate a genuine intention and realistic commitment to continuously maintain business or investment activities in Australia after the mandatory designated investment of $1,500,000 bond has matured. This criterion does not require the provision of any definite business or investment plans. Applicants must, however, describe their intentions in general terms and demonstrate their understanding of the Australian investment and business environment. In most instances, the existence of the nomination will satisfy this requirement on its own, but in the event where evidence to the contrary exists, the applicant’s intentions may be subject to further scrutiny.

    Application Charges

    Subclass 188 is payable in 2 instalments.

    First instalment:

  • Base application charge: $5,375
  • Additional applicant charge for an applicant who is at least 18: $2,685
  • Additional applicant charge for an applicant who is less than 18: $1,345
  • Second instalment:

    • Primary applicant without functional English: $9,795
    • Secondary applicants who do not demonstrate functional English: $4,89. For more info Get in touch Visa Plan

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