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Amendments to the SIV programme and the new PIV programme both commence 1 July 2015.
On 15 May 2015 Austrade released the framework for the amendments to the Significant Investor Visa (SIV) programme and the introduction of the Premium Investor Visa (PIV) programme, both of which will commence on 1 July 2015.
Under the amended SIV programme, SIV investors will no longer be able to invest in proprietary companies and must invest in managed funds investing minimum amounts in three broad categories of permitted investments (VCPE, emerging companies and balancing investments):
Other key changes are:
At least $500,000 must be invested in eligible venture capital or growth private equity funds. The consultation draft of the framework released earlier this year proposed a minimum investment of $1 million and the government has announced that it proposes to increase this minimum investment in VCPE to $1 million within 2 years.
Investments in VCPE funds require three elements of proof for SIV applicants:
At least $1.5 million must be invested in funds investing in eligible ‘emerging companies’. These include:
Open or closed ended managed funds and listed investment companies are eligible. As noted above, for the emerging companies investments, the:
The balance of the $5 million SIV investment must be invested in ‘balancing investments’. The table below outlines the key differences between the permitted fund investments under the current SIV programme and the permitted fund ‘balancing investments’ under the amended SIV programme from 1 July 2015.
Current permitted fund investment | Permitted balancing investments from 1 July |
---|---|
infrastructure projects | Aus listed infrastructure trusts |
cash with ADI | cash (< 20%) |
Cth and state bonds | – |
corporate bonds/debt listed in Aus to be listed in 12 months |
corporate bonds/notes issued by Aus listed |
bonds/term deposits with Aus financial institution |
– |
real property | real property (but 10% limit on residential real estate) |
Aus agribusiness | – |
annuities | deferred annuities (paybacks commence after the provisional visa period) |
derivatives for portfolio management only (< 20%) |
derivatives for risk management only (not subject to 20% limit) |
loans | – |
managed funds investing in the investments above |
managed funds investing in the investments above |
Open or closed ended managed funds and listed investment companies are eligible. As noted above, for the balancing investments, the:
As previously announced, the PIV programme will allow investors a 12 month path to permanent residency where an investment of $15 million is made in Australia.
The PIV is a separate class of visa to, and has less prescriptive investment requirement to, the SIV. VCPE and emerging companies investments are not mandated and permitted investments include:
All of the $15 million can be invested in one complying investment and the managed fund may use derivatives for risk management purposes and may hold cash up to 20% of the fund’s net assets. The PIV programme will be by invitation only, however applicants will be assessed on the proposed investment, their entrepreneurial skill, talent, benefit to Australia and character.
The contents of this publication are for reference purposes only and may not be current as at the date of accessing this publication. They do not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking any action based on this publication.
© Herbert Smith Freehills 2025
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