Business Innovation and Investment

Transcription

1 Business Innovation and Investment (Design date 07/13)

2 About this booklet This booklet is designed to assist you in understanding the steps for applying for a Business Innovation and Investment visa and a Business Talent visa. This booklet is one of a series of booklets about migration to Australia. The booklets are: 1 Partner Migration 2 Child Migration 3 Parent Migration 4 Other Family Migration 5 Employer Sponsored Migration (Permanent) 6 Points Based Skilled Migration (subclasses 189, 190 and 489) visa 7 Business Skills Entry 9 Temporary Work (Skilled) (subclass 457) visa 10 Business Innovation and Investment 11 SkillSelect For general information about migration to Australia visit the Department of Immigration and Citizenship website Australia wants to attract successful business innovators and investors to invest or enter into business in Australia and contribute to the growth of Australia s economy. This booklet is for prospective applicants who wish to engage in this type of business activity in Australia. There are 2 pathways for business skills entry: Business Innovation and Investment (Provisional) which leads to Business Innovation and Investment (Permanent); and A direct entry Business Talent (Migrant) visa for permanent residence for applicants who have a high calibre business history or have sourced venture capital funding.

3 Using a migration agent If you do not feel confident in lodging a visa application, or if your case is complex, you may wish to use a registered migration agent. In Australia, migration agents must be registered with the Office of the Migration Agents Registration Authority (Office of the MARA) in order to provide immigration assistance services. Under Australian law, anyone who uses knowledge of migration procedures to offer immigration assistance to a person wishing to obtain a visa to enter or remain in Australia must be registered or exempt from registration. All registered migration agents are bound by the Migration Agents Code of Conduct, which requires agents to act professionally in their clients lawful best interests. A list of registered migration agents is available from the Office of the MARA website You can contact the Office of the MARA at: Website: Mail: info@mara.gov.au PO Box Q1551 QVB NSW 1230 AUSTRALIA In person: Level Elizabeth Street SYDNEY NSW AUSTRALIA Office hours are 9am 5pm Australian Eastern Standard Time (AEST) Telephone: or Fax: The Office of the MARA investigates complaints against registered migration agents and may take disciplinary action against them. If you have a concern about a registered migration agent, you should contact the Office of the MARA. The Code of Conduct and complaint form are available from the Office of the MARA website.

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5 Contents Terms you need to know 3 Part 1 General information 9 Business Innovation and Investment Program overview 9 State or territory government nomination 9 Business Services 9 Does my business proposal meet Australia s requirements? 10 Obligations 10 Monitoring 12 Costs and Charges 12 Dependants 13 Purchasing property 14 Part 2 Before you can apply 15 Expression of Interest (EOI) and your Invitation to Apply 15 Part 3 Provisional Business Innovation and Investment 16 Business Innovation and Investment (subclass 188) visa 16 Business Innovation and Investment (extension) visa 18 Making a designated investment for the Investor stream 19 Making a complying investment for the Significant Investor stream 20 Part 4 Innovation points test 21 Innovation points test 21 Part 5 Permanent Business Innovation and Investment 25 Business Innovation and Investment (subclass 888) visa 25 Business Talent (subclass 132) visa 28 Part 6 Preparing your application and supporting documents 30 Personal documents 30 Business documents 30 Financial documents 31 Points test evidence 31 Business Innovation and Investment 1

6 Part 7 English language ability 32 Functional English language ability 32 Part 8 Health and character 33 Health requirements 33 Character requirements 34 Part 9 About visa applications 36 You must have a visa to travel to and stay in Australia 36 Where to get information 36 Family members 36 Limitations on applications 36 Communicating with the department 37 Withdrawal of applications 38 You must correctly identify yourself 38 Let the department know if you change your address or circumstances 38 Extra information about your application 39 Interviews 39 lnvitation to comment 39 Visa decisions 39 You must abide by all conditions on your visa 40 Bridging visas 40 Part 10 State and territory contact details 41 2 Business Innovation and Investment

7 Terms you need to know Applicant ASIC ATO AUD Authorised recipient AVCAL Business turnover Child Complying investment De facto partner Department The applicant is the person (or persons) applying for a visa to remain temporarily or permanently in Australia. Australian Securities and Investments Commission Australian Taxation Office AUD means the Australian Dollar equivalent value on the basis of the buying rate: in the local currency for Australian dollars on the last day of the fiscal year in which the business reported; and published by a bank holding an Australian Banking License; and published on an approved currency conversion website. An authorised recipient is someone you appoint to receive written communications about your application with the department. The department will communicate with the most recently appointed authorised recipient as you may only appoint one at any time for a particular application. Australian Private Equity and Venture Capital Association Turnover is the revenue generated by an entity as a result of its ordinary business activities. Child (when used in relation to another person) means: a natural (biological) child; or an adopted child within the meaning of the Migration Act 1958; or a child born under surrogacy arrangements, where parentage has been transferred by court order under a prescribed state or territory law. Complying investments for the Significant Investor visa stream include: Commonwealth, State or Territory government bonds; Australian Securities and Investment Commission (ASIC) regulated managed funds with a mandate for investing in Australia; and direct investment into Australian proprietary companies not listed on an Australian Stock Exchange. A person is the de facto partner of another person (whether of the same sex or different sex) if the person is in a de facto relationship with the other person. A person is in a de facto relationship with another person if: they are not in a married relationship (for the purposes of the Migration Act 1958) with each other; they are not related by family; they have a mutual commitment to a shared life to the exclusion of all others; the relationship between them is genuine and continuing; they live together and do not live separately and apart on a permanent basis; and the relationship has continued for the period of 12 months immediately preceding the date of application. Department of Immigration and Citizenship Business Innovation and Investment 3

8 Dependent child Designated investment Direct investment into Australian proprietary companies Eligible investment Exempt agents Export trade Expression of Interest (EOI) Fiscal year The child or stepchild, of a person (other than a child who has a partner or is engaged to be married), being a child who is one of the following: has not turned 18; or has turned 18 and is dependent on that person; or is incapacitated for work due to the total or partial loss of the child s bodily or mental functions. Designated investment means investment in a security issued by an Australian state or territory government authority which is specified by the Minister in Gazette Notice for the purposes of the investor stream of the Business Innovation and Investment visa. For direct investment into Australian proprietary companies to be classed as a complying investment for the Significant Investor stream, the following criteria must be met: the company must genuinely operate a qualifying business in Australia; the applicant must obtain an ownership interest in the company; and the company must be registered with ASIC. Eligible investment in relation to a person means: an ownership interest in a business; or a loan to a business; or cash on deposit; or real estate; or gold or silver bullion that is owned by the person for the purposes of producing a return by way of income or capital gain and is not held for personal use. The following people do not have to be a registered migration agent in order to provide immigration assistance, but they must not charge a fee for their service: a close family member (spouse, de facto, partner, child, parent, brother or sister); a sponsor or nominator for this visa application; a member of parliament or their staff; an official whose duties include providing immigration assistance (eg. a Legal Aid provider); a member of a diplomatic mission, consular post or international organisation. The sale of goods across the national borders of one country to another and does not include the export of services. An expression of interest (EOI) is an indication that you would like to be considered for a skilled visa. It is not a visa application. Fiscal year in relation to business or investment means: if there is an accounting period of 12 months applicable to the business or investment by law that period; or in any other case a period of 12 months accepted as applying to that business for taxation purposes by the authorities in the country in which the business operates and reports. 4 Business Innovation and Investment

9 Gazelle business Government grants Invitation Innovation points test Innovation IELTS Joint Venture Agreements Migration agent A gazelle business is a newly established business experiencing rapid growth during a short period of time. A government grant is monetary assistance that was provided by a government or a government agency, whether local or national, of the applicant s home country, upon specified conditions. Invitations are sent after your EOI has been submitted and a state or territory government agrees to nominate you. You will then have 60 days to make a valid visa application online, before the invitation expires. A scale that awards points for various applicant attributes for the Business Innovation and Investment program. Innovation occurs when businesses adopt innovative products and services from external sources through to more complex creative work undertaken on a systematic basis. International English Language Testing System. This is the testing system accepted by the department to assess your English language ability for migration purposes. A commercial undertaking entered into by one or more parties usually in the short term for the purposes of a particular activity. A migration agent is someone who can: advise you on the visa which may best suit you; tell you the documents that you need to submit with your application; help you fill in the application and submit it; and communicate with the department on your behalf. If you appoint a migration agent, the department will assume that the migration agent will be your authorised recipient, unless you indicate otherwise. Your migration agent will be the person who the department will discuss your application with and from whom it will seek further information when required. Migrating family members Family members included in your application who will be travelling with you to Australia. Business Innovation and Investment 5

10 Main business Managed funds A business is a main business in relation to the applicant if: the applicant has, or has had, an ownership interest in the business; and the applicant maintains, or has maintained, direct and continuous management of the business from day to day and in making decisions affecting the overall direction and performance of the business; and the value of the applicant s ownership interest, or the total value of the ownership interests of the applicant and the applicant s spouse or de facto partner in the business is or was at least: 51% if the annual turnover of the business was less that AUD400,000; 30% if the annual turnover of the business was more than AUD400,000; 10% if the business is a publicly listed company; and the business is a qualifying business. If an applicant has, or has had, an ownership interest in more than one qualifying business, the applicant must not nominate more than 2 of those qualifying businesses as a main business. For managed funds to be classed as a complying investment for the Significant Investor stream, the managed fund must be regulated by ASIC. Managed fund means an investment to which all of the following apply: the investment is a managed investment scheme (within the meaning of the Corporations Act 2001) in which members acquire interests in the scheme; the interests are not able to be traded on a financial market (within the meaning of section 767A of the Corporations Act 2001); no representation has been made to any member of the managed investment scheme that the interests will be able to be traded on a financial market; the issue of the interest is covered by an Australian financial services license issued under section 913B of the Corporations Act The mandate for the managed fund must be in Australian assets only and limited to the following: infrastructure projects in Australia; cash held by Australian deposit taking institutions; bonds issued by the Commonwealth Government or a State or Territory government; bonds, equity, hybrids or other corporate debt in Australian companies and trusts listed on the Australian Stock Exchange; bonds or term deposits issued by Australian financial institutions; real estate in Australia; Australian Agribusiness; and other ASIC regulated managed funds that invest in the above list of investments. The fund must be open to the general public and applicants must provide form 1413 Declaration in relation to managed funds signed by fund managers adhering to the department s investment requirements. 6 Business Innovation and Investment

11 Married relationship Net assets Persons are in a married relationship if: they are married to each other under a marriage that is valid for the purposes of the Migration Act 1958; they have a mutual commitment to a shared life as husband and wife to the exclusion of all others; the relationship between them is genuine and continuing; and they live together or do not live separately and apart on a permanent basis. The net assets of a business is the amount attributable to the owners or shareholders of the business after deducting financial claims upon the business by third parties from total assets. Net assets = total assets minus liabilities. Non-migrating family members Online lodgement OET Ownership interest Provisional visa Qualifying business SkillSelect Nomination Registered design Registered patent Family members are required to declare in your application if they are not travelling with you to Australia as a part of your visa application. Making your visa application through the online services provided by the department. The Occupational English Test (OET) is a language test for health practitioners. Ownership interest in relation to a business means an interest in the business as: a shareholder in a company that carries on the business; or a partner in a partnership that carries on the business; or the sole proprietor of the business, including such an interest held indirectly through one or more interposed companies, partnerships or trusts. A provisional visa under the Business Skills Category means a temporary 4 year visa. An enterprise operated for the purpose of making profit through the provision of goods and/or services to the public and is not operated primarily or substantially for the purpose of speculative or passive investment. SkillSelect is an online system that enables skilled workers interested in migrating to Australia to record their details to be considered for a skilled visa through an EOI. A state or territory government agrees to endorse your visa application. A registered design is concerned with the appearance of products if they are new and distinctive. Registration prevents unauthorised parties from applying the design (or a design which is substantially similar in overall impression to the registered design) to other products. A registered patent is a set of exclusive rights granted by a state government to an inventor or their assignee in relation to an invention, which may be a product or a process, for a certain limited period, in exchange for public disclosure of the invention. Business Innovation and Investment 7

12 Registered trademarks State government State or territory government bonds Territory government Trade certificate Treasury corporation Transitional arrangements Venture capital A registered trademark gives the owner the exclusive right to use, license or sell a trademark within the jurisdiction in which it is registered for the goods and services for which it is registered. A trademark can be a letter, number, word, phrase, sound, smell, shape, logo, picture, aspect of packaging or any combination of these, used to distinguish goods and services of one business from those of another. Each of the 6 states, New South Wales, Queensland, South Australia, Tasmania, Victoria and Western Australia has its own constitution and is permitted to pass laws related to any matter that is not controlled by the Commonwealth. An investment in a security issued by an Australian state or territory government. Territory governments have been granted a limited right of self-government by the Australian Government. In the territories, a range of governmental matters are handled by a locally-elected parliament. Australia s mainland territories are the Australian Capital Territory and the Northern Territory. Certifies experience and skills in a trade related field. This is usually at Australian Certificate II level or above. Delivers financial outcomes for the benefit of the corporations, state or territory government and related entities. Arrangements for existing provisional business skills holders to apply for the new permanent Business Innovation and Investment visa and be assessed at the existing permanent thresholds. Venture capital is financial capital provided to early stage, high potential, high risk start up companies. 8 Business Innovation and Investment

13 Part 1 General information Australia welcomes successful business owners and investors The aim of the business innovation and investment category is to enable successful business innovators and investors to invest or enter into business in Australia and contribute to the growth of Australia s economy. Business Innovation and Investment Program overview The majority of entrants will enter Australia on a provisional visa for 4 years. There are 3 main streams under this category: The Business Innovation Stream For people with a successful business career and a genuine and realistic commitment to be involved as an owner in a new or existing business in Australia. The Investor Stream For people with a successful record of qualifying business or eligible investment activity who will make a designated investment in a state or territory of Australia and have a realistic commitment to continue to maintain business or investment activity in Australia after the designated investment has matured. The Significant Investor Stream For migrant investors who make an investment of at least AUD5,000,000 into complying investments in Australia. After demonstrating a certain level of business or investment activity the entrant may then be eligible to apply for the permanent Business Innovation and Investment (subclass 888) visa. Provisional visa holders in the Business Innovation and the Significant Investor streams may be eligible to apply for an extension to their provisional visa. Affluent business migrants who can show a high level of business attributes can gain direct permanent residence with the Business Talent (subclass 132) visa. There are 2 streams for entry under this category: The Significant Business History Stream For affluent business people who are owners or part owners of a business and have a genuine and realistic commitment to participate in the management of a new or existing business in Australia. The Venture Capital Entrepreneur Stream For migrant entrepreneurs who have sourced venture capital funding in Australia. State or territory government nomination State or territory government nomination is required for all business and investor visa applicants. Applicants are required to lodge an Expression of Interest (EOI) with SkillSelect to gain this nomination. Business Services State and territory governments also provide a wide range of post arrival business related services to assist entrants in setting up their new business in Australia. Further information about these services is available from the department s website at and Business Innovation and Investment 9

14 Does my business proposal meet Australia s requirements? You need to ensure that Australia s legislation does not restrict you from operating your proposed business. You should check that you satisfy any licensing, registration or residency requirements that may be applicable to your business. Information on gaining an assessment of overseas qualifications, skills or experience and licensing/ registration requirements is available from the department s website Information on investing in Australia is available from the Foreign Investment Review Board website Obligations All applicants for a Business Innovation and Investment (subclass 188) and Business Talent (subclass 132) visas are required to sign a declaration that they agree to meet certain obligations after arrival in Australia. In this declaration, each applicant who is 18 years of age or over must agree to: notify the department of their residential address within 6 months of initial entry to Australia using form 922 Notification of address or change of address for Business Skills visa holders; and continue to notify the department of any subsequent changes of residential address within 28 days of a change of address (this includes any residential address outside Australia), using form 922 Notification of address or change of address for Business Skills visa holders. Failure to meet the obligations while holding a Business Innovation and Investment (subclass 188) visa may impact adversely upon any later applications for a Business Innovation and Investment (subclass 888) visa. Business Innovation and Investment (subclass 188) applicants Business Innovation and Investment (subclass 188) applicants must: secure and maintain nomination from a state or territory government; and agree to invest or enter into a business in Australia and contribute to the growth of Australia s economy. Business Innovation stream If you are in this stream, after entering Australia you must provide valuable input to the Australian economy. You must: obtain and maintain substantial ownership in a business in Australia; and participate, at a senior level, in the day-to-day management of that business. In the business, you must also do at least one of the following: develop business links with international markets; create or maintain employment in Australia; export Australian goods; produce goods or services that would otherwise be imported; introduce new or improved technology; add to commercial activity and competitiveness within sectors of the Australian economy. The department may ask you to complete a monitoring survey about your business activities in Australia. 10 Business Innovation and Investment

15 Investor stream If you are in this stream, after entering Australia you must maintain your designated investment for at least 4 years. Failure to do so may result in visa cancellation. Significant Investor stream If you are in this stream, after entering Australia you must continuously maintain your complying investment(s) for at least 4 years. Failure to do so may result in visa cancellation. Business Innovation and Investment (subclass 888) applicants Business Innovation and Investment (subclass 888) applicants must: secure and maintain nomination from a state or territory government; for the Business Innovation stream demonstrate that you have had direct and continuous management in your Australian business for the past 2 years; or for the Investor stream have held a designated investment continuously for at least 4 years; or for the Significant Investor stream have held a complying investment continuously for at least 4 years. Business Talent (subclass 132) applicants Business Talent (subclass 132) applicants must: quickly become involved in business in Australia and uphold the requirements of the stream under which you have applied; and sign a declaration that you agree to accurately and fully complete form 1010 Survey of Business Skills visa holders. Further information about the survey can be found under Monitoring. Significant Business History stream If you are in this stream, after entering Australia you must provide valuable input to the Australian economy. You must: establish a qualifying business in Australia or participate in an existing qualifying business in Australia; maintain substantial ownership; maintain direct and continuous involvement in the day-to-day management of the business; make decisions that affect the overall direction and performance of the business in a manner that benefits the Australian economy. In the business, you must also do at least one of the following: develop business links with international markets; create or maintain employment in Australia; export Australian goods; produce goods or services that would otherwise be imported; introduce new or improved technology; add to commercial activity and competitiveness within sectors of the Australian economy. Business Innovation and Investment 11

16 Venture Capital Entrepreneur stream If you are in this stream, you must: establish or participate in a business for the start-up, product commercialisation or business development relating to a promising high value business idea in Australia; and meet the requirements of your venture capital agreement. Monitoring Most Business visa holders are required to complete surveys about their business activities in Australia. The aim of the surveys is to determine the nature and extent of a visa holder s activities in Australia and enable a visa holder to report on any difficulties being experienced in getting into businesses. This survey may also be used to determine an applicant s eligibility for a renewal of their provisional visa. The survey is done using form 1010 Survey of Business Skills visa holders. This assists in reporting outcomes of the Business visa category. Costs and Charges Payment must accompany your application at the conclusion of the online lodgement process. Credit Card is the only form of accepted payment for Business visa applications. Fees may be subject to change at any time. The Visa Application Charge (VAC) may be subject to adjustment on 1 July each year. This may increase the cost of the visa. If you or any members of your family unit included in your application are over 18 years of age and have been assessed as not having functional English language ability, they will be required to pay a second instalment of the VAC. The full amount must be paid before the visa can be granted. Persons able to demonstrate functional English ability do not need to pay this charge. Medical costs You and members of your family may be required to complete a medical and chest x-ray examination. The cost of these examinations is to be met by the applicant. English proficiency testing To show functional English, you and members of your family may need to sit an International English Language Testing System (IELTS) test. The cost of English testing is to be met by the applicant. Other costs You should also be prepared to pay other costs associated with your application, such as those required to obtain character clearance from authorities in your country and the cost of certifying documents. 12 Business Innovation and Investment

17 Dependants Your application may cover a family unit, namely a main applicant and, if applicable, spouse or de-facto partner and dependants. Additional charges may apply. Refer to the department s website for further information. Dependent children To be considered your dependent child, your child must: be under 18 years of age; or if aged 18 years or over, have been wholly or substantially dependent on you for a substantial period (at least 12 months) for their basic needs (food, clothing and shelter); or if aged 18 years or over, have a total or partial loss of their bodily or mental functions that stops them from earning a living (whether or not they migrate with you). If your child (regardless of their age) is married, in a de facto relationship or is engaged to be married, they will not be considered to be a dependent child. Custody requirement The department seeks to ensure that allowing a child to migrate is not in contravention of Australia s international obligations in relation to the prevention of child abduction. If your application includes a dependent child under 18 years of age and that child s other parent is not migrating with you, or there is any other person who has the legal right to determine where that child can live, you will need to provide the evidence as outlined below. For each dependent child aged under 18 years and included in your application, you will need to provide one of the following: evidence that the law of your home country permits you to remove the child to Australia. This could include an overseas court order granting you sole custody of the child; evidence that the child s other parent is deceased, such as a certified copy of the death certificate; or evidence that the grant of the visa would be consistent with any Australian child order in force in relation to the child. Such evidence should be the original or certified copy of the Australian Court order providing you with sole responsibility to decide where the child should live. In the case of a step-child, you will need to provide evidence that you were in a partner relationship with the child s natural parent and that you have been awarded one of the following: a parenting order in force under the Family Law Act 1975 under which the parent is the person with whom a child is to live, or who is to be responsible for the child s long-term or day-to-day care, welfare and development; or guardianship or custody, whether jointly or otherwise, under a Commonwealth, state or territory law or a law in force in a foreign country. Business Innovation and Investment 13

18 Other dependent relatives Other dependent relatives may also be included in your visa application, but only in some circumstances. A person is your dependent relative if they are: not your dependent child; your parent, brother or sister; step-parent, step-brother or step-sister; grandparent, grandchild, aunt, uncle, niece or nephew, step grandparent, step-grandchild, step-aunt, step-uncle, step-niece or step nephew; single (eg. a widowed aunt); usually resident in your household; wholly or substantially financially reliant on you for their basic needs (food, clothing and shelter); reliant on you for a substantial period (at least 12 months); and more reliant on you for that support than on any other person or source. Purchasing property The Australian Government seeks to channel foreign investment in residential real estate into activity that directly increases the supply of new housing (that is, new developments such as house and land, home units and townhouses) and brings benefits to the local building industry and their suppliers. Some restrictions apply to provisional visa holders when purchasing residential real estate. These may affect the purchase of your family home and any intended investments. To purchase real estate you must seek prior approval from the Foreign Investment Review Board. For further information see 14 Business Innovation and Investment

19 Part 2 Before you can apply Expression of Interest (EOI) and your invitation to apply If you are applying for a Business Innovation and Investment (subclass 188) visa or a Business Talent (subclass 132) visa you will be required to lodge an expression of interest (EOI) with the SkillSelect system. An EOI is not a visa application, but an indication you would like to be considered for a Business Skills visa. Although you don t need to submit any documentation with your EOI, it is a good idea to have your information prepared as you may be required to provide the following information: basic personal information; work experience; study, education and qualifications; English language ability; business and investment experience. State or territory governments will then search for business innovators and investors that they require and are willing to nominate. Once the state or territory governments have made their choice, you will receive an invitation to apply for a Business Innovation and Investment (subclass 188) visa or a Business Talent (subclass 132) visa. I have my invitation now what do I do? Once you have your invitation, you can follow the instruction to lodge your application online. Applications for a Business Innovation and Investment (subclass 188) visa or a Business Talent (subclass 132) visa will only be accepted as online applications. Business Innovation and Investment 15

20 Part 3 Provisional Business Innovation and Investment Business Innovation and Investment (subclass 188) visa Stage 1 Provisional visas Business Innovation stream Applicants must: be less than 55 years of age or the nominating jurisdiction must provide their support to waive the age requirement; meet the points tested pass mark; have a genuine and realistic commitment to be involved as an owner of a new or existing business in Australia; have an overall successful business career; have net business and personal assets of AUD800,000; have business turnover of AUD500,000. Business Innovation and Investment (subclass 188) visa A state or territory nominated provisional visa with no minimum English requirement and is valid for 4 years. Applicants must submit an EOI in SkillSelect and may be inside or outside Australia at the time of visa application or grant. Investor stream Applicants must: be less than 55 years of age or the nominating jurisdiction must provide their support to waive the age requirement; meet the points tested pass mark; have at least 3 years experience of direct involvement in eligible investment; make a designated investment of at least AUD1,500,000 into a state or territory government bond for 4 years before visa grant; and have net business and personal assets of AUD2,250,000. There is no business turnover requirement. Significant Investor stream Applicants must invest at least AUD5,000,000 into complying investment(s) in Australia before visa grant. There are no upper age limits or minimum English requirement. There is no need to satisfy the innovation points test. Applicants may be eligible to renew the visa up to 2 times. 16 Business Innovation and Investment

21 Eligibility To be eligible you need to show that you: are nominated by a state or territory government; have a demonstrated overall successful business or investment career with no involvement in unacceptable business or investment activities; have a functional English language ability (or you may be required to pay a second VAC); have sufficient funds to settle in Australia. Other requirements depend on whether you apply for the Business Innovation stream, the Investor stream or the Significant Investor stream. Business Innovation stream You are less than 55 years of age at the time of application or you are proposing to establish or participate in a business that your nominating state or territory has determined to be of exceptional economic benefit to the state or territory. For at least 2 of the 4 fiscal years immediately before the application is made, you had an ownership interest in up to 2 main businesses that had an annual turnover of at least AUD500,000. Your (or your and your spouse or de facto partner s combined) business and personal assets have a net value of at least AUD800,000 which are available for the conduct or establishment of a business in Australia and are lawfully acquired and available for transfer to Australia within 2 years of the grant of your visa. You have a realistic commitment to establish or participate in a qualifying business in Australia and maintain a substantial ownership and direct and continuous involvement in the management of that business. You have demonstrated that there is a need to be in Australia to conduct or establish the proposed business activity. You meet the innovation points test. You have made a declaration that you understand your obligations as a holder of a Business Innovation and Investment (Business Innovation stream) visa. Business Investor stream You are less than 55 years of age at the time of application or you are proposing to establish or participate in a business that your nominating state or territory has determined to be of exceptional economic benefit to the state or territory. You have a net value of at least AUD2,250,000 for the 2 fiscal years immediately before you are invited to apply. You are able to make a designated investment of AUD1,500,000. For at least one of the 5 fiscal years immediately before the application is made: you have maintained direct involvement in either managing a qualifying business in which you (or you and your spouse or de facto partner together) had an ownership interest; or you have maintained direct involvement in managing your (or your and your spouse or de facto partner s combined) eligible investments, the total value of which was at least AUD1,500,000. You have a total of at least 3 years experience of direct involvement in managing a qualifying business or eligible investment. Business Innovation and Investment 17

22 You have a realistic commitment to continue to maintain a business or investment activity in Australia after the designated investment has matured. You meet the innovation points test. You have made a declaration that you understand your obligations as the holder of a Business Innovation and Investment (Investor stream) visa. Significant Investor stream No age requirement. Have AUD5,000,000 to invest into complying investments in Australia. You have made a declaration that you understand your obligations as the holder of a Business Innovation and Investment (Significant Investor stream) visa. Business Innovation and Investment (extension) visa Business Innovation extension stream Provisional visa holders in the Business Innovation stream may be eligible to apply for an extension to their provisional visa for an additional 2 years if extra time is needed to meet the criteria for the permanent visa. To be eligible to extend your provisional visa you need to show that you: were granted a provisional Business Innovation and Investment visa in the Business Innovation stream; have made a genuine attempt to meet the requirements of the permanent Business Innovation and Investment visa in the relevant stream; have maintained a genuine commitment to business in Australia; can demonstrate a need for a 2 year extension to your provisional visa in order to meet the permanent visa requirements; and have secured state or territory government nomination for a further 2 years. Significant Investor extension stream Provisional visa holders in the Significant Investor stream may apply for up to 2 extensions to their provisional visa. To be eligible to extend your provisional visa you need to show that you: were granted a provisional Business Innovation and Investment visa in the Significant Investor stream or the Significant Investor extension stream; hold complying investment(s) and have continuously held complying investment(s) for the life of your visa; have provided form 1413 Declaration in relation to managed funds for each managed fund in which you are claiming to have made a complying investment, signed by the trustee or the fund manager; have made an undertaking, by completing form 1412 Deed of Acknowledgment, Undertaking and Release, that you will not: take action of any kind against the Commonwealth or the Minister in a court or other body in relation to any loss of capital relating to the complying investment; or 18 Business Innovation and Investment

23 authorise any other person to take action of any kind on your behalf; have secured state or territory government nomination for the extension of your visa. Making a designated investment for the Investor stream The designated investments offered by state and territory Treasury Corporations are: primary-issue government securities with a maturity of no less than 4 years from the date of purchase; limited to investments of AUD1,500,000; non-transferable and non-redeemable, that is, the security cannot be sold to another investor or sold back to the issuing authority before maturity. Repayment of principal on maturity is guaranteed by the state/territory government issuing the security. Taxation obligations The Australian Taxation Office (ATO) has advised that income you earn from your investment in Australia is subject to tax under Australian taxation law. For further information see When and how to make a designated investment You must lodge a designated investment with the Treasury Corporation of the state or territory that is nominating you. The actual rate of return on your investment will be set when you deposit your funds in the designated investment. Interest rates change regularly and may differ between state and territory Treasury Corporations. Note: You should not make a designated investment until you are advised in writing to do so by the office processing your application. (The letter of advice will also include form 1031 Declaration, Part A, which will have been completed by the officer of the department assessing your application. You should submit form 1031 to the selected agency. You should select only one of the listed agencies.) The next step is to complete the investment application form and Part B of form Both forms should then be sent to the postal address of the relevant Treasury Corporation. Your designated investment must be made in time for you to enter Australia before expiry of your health and character clearances. Information on health and character clearances may be obtained from the office processing your application. Note: Funds used to finance your designated investment must be personally owned and unencumbered and must have been legally accumulated as a result of your business and/or investment activities. Business Innovation and Investment 19

24 Disclaimer: This information is for general use only. The Australian Government does not endorse specific designated investments and does not accept liability for any loss suffered or taxation liability incurred as a result of making your investment. Making a complying investment for the Significant Investor stream Complying investments for the Significant Investor visa stream include: Commonwealth, state or territory government bonds; Australian Securities and Investment Commission (ASIC) regulated managed funds with a mandate for investing in Australia; and direct investment into Australian proprietary companies not listed on an Australian Stock Exchange. Note: You should not make a complying investment until you are advised in writing to do so by the office processing your application. Funds used to finance your complying investment must be personally owned and unencumbered and must have been legally accumulated. Investor The investor, or the primary visa applicant, can make the complying investment personally, or together with the investor s spouse or de facto partner. If the complying investment is made through a company, the company must be an ASIC registered company; and the primary visa applicant, or together with the investor s spouse or de facto partner, must own and hold all of the issued shares of the company. If the complying investment is made through a trust, the trust must be a lawfully established and valid trust; and the primary visa applicant, or together with the investor s spouse or de facto partner, are the sole trustees and beneficiaries of the trust. Through these investment structures the investor may hold complying investments in any proportion. Switching investments As the holder of a Significant Investor visa, you may switch between complying investments as long as the sum withdrawn corresponds with the sum reinvested. Visa holders have a maximum period of 30 calendar days from the date the funds are withdrawn to reinvest in other complying investments. Funds reinvested into a complying investment within 30 calendar days are taken to have been held continuously from the original investment date. Taxation obligations The Australian Taxation Office (ATO) has advised that income you earn from your investment in Australia is subject to tax under Australian taxation law. For further information see Disclaimer: This information is for general use only. The Australian Government does not endorse specific complying investments and does not accept liability for any loss suffered or taxation liability incurred as a result of making your investment. 20 Business Innovation and Investment

25 Part 4 Innovation points test Innovation points test If you are applying for a provisional Business Innovation and Investment (subclass 188) visa under the Business Innovation or the Investor stream, in addition to the criteria relevant to your chosen stream you must also meet the pass mark for the points test. The points test awards points for various elements of human capital, business innovation as well as objective measures of business performance. The pass mark is the minimum required for an invitation to apply for a subclass 188 visa and for its grant. However, there would be no minimum score that prevents you from making an Expression of Interest (EOI) in the SkillSelect system. Points will be awarded to applicants for: Age Points English language ability Points Vocational 5 Proficient 10 Qualification Australian Trade Certificate or higher or a Bachelor Degree recognised by the Minister (in any field of study) Bachelor Degree in Business, Science or Technology Experience in business Greater than 4 years business or investment experience Greater than 7 years business or investment experience Points 5 10 Points Net personal and business assets and Points business turnover AUD800,000 5 AUD1,300, AUD1,800, AUD2,250, Turnover Points AUD500,000 5 AUD1,000, AUD1,500, AUD2,000, Business Innovation and Investment 21

26 Innovation Points Registered patents or registered designs 15 Evidence of trademarks 10 Evidence of joint venture agreements 5 Evidence of export trade 15 Evidence of gazelle business 10 Evidence of the receipt of grants or venture capital funding State or territory government Points Special endorsement Age Applicants are eligible for points on the basis of the main applicant s age at the time of invitation. Applicants who are aged 55 years or older may be nominated by a state or territory government agency only if their business is of exceptional economic benefit. In this circumstance, the applicant would not be eligible for points under the innovation points test. English language ability Applicants who can demonstrate vocational English are awarded 5 points. To demonstrate vocational English, applicants must have an IELTS test score of at least 5 for each of the 4 test components of speaking, reading, writing and listening. Applicants who can demonstrate proficient English are eligible to be awarded 10 points. An applicant with proficient English must have an IELTS test score of at least 7 for each of the 4 test components of speaking, reading, writing and listening. Qualifications Applicants are awarded 5 points if, at the time of invitation, they have met the requirements for a trade qualification, diploma or bachelor degree by an Australian educational institution. Bachelor degrees from an educational institution are also acceptable if the Minister is satisfied the award is comparable to an Australian qualification. Applicants are awarded 10 points if, at the time of invitation, they have met the requirements for the award of a bachelor degree in business, science or technology by an Australian educational institution. Bachelor degrees from an educational institution are also acceptable if the Minister is satisfied the award is comparable to an Australian qualification. Experience in business or investment Applicants are awarded points if they have a demonstrated history of business or investment experience for a specified amount of time. 22 Business Innovation and Investment

27 Points are awarded for years of business or investment experience gained in the years immediately before the time of invitation. The experience must be relevant to the visa stream. An applicant for the business innovation stream can only claim points for business experience, and an applicant for the investor stream can only claim points for investment experience. Business Innovation stream you can only claim points for your business experience. You must have held one or more main businesses for not less than 4 years in the 5 years, or 7 years in the 8 years, immediately before you are invited to apply. Investor stream you can only claim points for investment experience. You must have held eligible investments which had a value of not less than AUD100,000 for not less than 4 years or not less than 7 years, immediately before you are invited to apply. Significant Investor stream Significant Investor visa applicants do not need to satisfy the innovation points test. Net personal and business assets Net business and personal assets are mandatory threshold criteria that all applicants must meet. Business innovation stream applicants must have net business and personal assets of AUD800,000, and investor stream applicants must have net business and personal assets of AUD2,250,000. Points are awarded for meeting the minimum thresholds, and higher points will be awarded for greater levels of assets. Business turnover Business innovation stream applicants must meet the business turnover requirement of AUD500,000. There is no business turnover requirement of investor stream applicants. Points are awarded for applicants in either stream where they have an ownership interest in one or more main businesses that have a specified amount of business turnover in at least 2 of the 4 fiscal years immediately before the time of invitation. Innovation This component of the points test gives points for the following attributes. Applicants may be awarded points for more than one item under the innovation category of the points test, but points are awarded only once in relation to each item. Registered patents or registered designs A registered patent is a set of exclusive rights granted by a state government to an inventor or their assignee in relation to an invention, which may be a product or a process, for a certain limited period, in exchange for public disclosure of the invention. A registered design is concerned with the appearance of products if they are new and distinctive. For example, the features of shape or configuration which have been incorporated in the product or the features of pattern or ornamentation applied to a product. Points are awarded when the applicant has had one or more patents or designs registered at least one year before time of invitation. The patents or designs must have been used in the day-to-day activities of the main business. Business Innovation and Investment 23