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Investor visa program could boost venture capital
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TRADE and Investment Minister Andrew Robb has released a draft investment framework for an enhanced Significant Investor Visa Scheme (SIV) and design options for a new Premium Investor Visa (PIV) in an effort to boost investment into more dynamic sectors of the economy.
Mr Robb said as part of the government’s broader competitiveness agenda, these visa reforms aimed to drive investment into needy areas such as venture capital and small emerging companies. 
“The framework and design options were developed by Austrade following initial rounds of stakeholder consultation which attracted 68 written submissions,” Mr Robb said.
“Under the existing SIV scheme, investment is directed largely into passive investments like government bonds.
“Applicants are required to make an investment of at least $5 million in complying investments for a minimum of four years. Under the proposed changes government bonds would no longer be a complying investment class.”
Mr Robb said the proposed complying investment framework for the SIV scheme included specifying that at least 20 percent ($1m) of the applicant’s $5m investment must flow into early stage, growth capital investments, through approved venture capital funds.
It would also specify that at least 30 percent ($1.5m) of the applicant’s investment must flow into emerging listed companies, through managed funds investing in small Australian stock exchange listed companies.
The changes would also reinforce existing rules banning direct investment into residential real estate, and introducing new measures to clamp down on indirect investment into residential real estate. A portion of funds will continue to be permitted to flow into commercial real estate, via managed funds.
Mr Robb said there were “enhanced measures” to improve protection for investors.
The Premium Visa scheme, he said, would require a minimum investment of $15 million and offer an accelerated 12-month pathway to citizenship.
This scheme will be more flexible in terms of investment class and will be aimed at attracting exceptional business people to Australia, including high-calibre entrepreneurs.
Mr Robb said investor visas offered a valuable prize which the government believed warranted investment in more dynamic and productive areas of the economy which experience capital constraints.
“These changes will attract more investment into high-growth companies and will support the commercialisation of great Australian research,” Mr Robb said.
“Our key objective is to see more investment into areas which support innovation and which provide new sources of growth capital, particularly in areas with thin capital flows.”
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