Changes to the Business Innovation and Investment Program (1 July 2021)

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Table of Contents

• What Are the Key Changes I Need to Know?
• Requirements for Subclass 188 Visa Post 1 July 2021
• Key Takeaways
• Frequently Asked Questions

The Australian Government offers business owners and investors the opportunity to migrate to Australia via its Business Innovation and Investment program. The Business Innovation and Investment program is a two-stage process, with a provisional visa (subclass 188) first and then a permanent visa (subclass 888). From 1 July 2021, several key changes apply to the Business Innovation and Investment program.

This article will give a brief overview of the changes introduced from 1 July 2021, and then explain the new requirements more in-depth under each visa stream.

What Are the Key Changes I Need to Know?

You can find a brief overview of the key changes to the Business Innovation and Investment program below:

Requirements for Subclass 188 Visa Post 1 July 2021

Business Innovation Stream

Under the business innovation stream, the applicant must:

• be under 55 years old;
• score 65 points or higher on the points test;
• be nominated by a state or territory agency;
• have personal and business net assets of $1.25 million;
• have an ownership interest in a main business, and that business had an annual turnover of $750K (for at least two of the last four fiscal years); and
• have a genuine and realistic commitment to establish or participate in a qualifying business in Australia.

Additionally, the applicant requires state or territory nomination, and each state/territory will require the applicant to meet the criteria under this stream:

Investor Stream

Under the investor stream, the applicant must:

• be under 55 years old;
• score 65 points or higher on the points test;
• be nominated by a state or territory agency;
• have a total net value of eligible investments of at least $2.5 million; 
• have personal and business net assets of $2.5 million for two fiscal years;
• make a complying significant investment of at least $2.5 million and hold that investment continuously for the duration of the provisional visa. You must invest the funds in the following proportions:
  • at least $500,000 in venture capital and growth private equity funds, which invest in startups and small private companies;
  • at least $750,000 in approved managed funds. The managed funds must invest in emerging companies listed on the Australian Stock Exchange; and
  • a ‘balancing investment’ of at least $1.25 million in managed funds. 

The applicant requires state or territory nomination, and each state/ territory will require the applicant to meet additional criteria under this stream:

• NSW;
• VIC;
• QLD;
• SA;
• WA;
• NT; and
• TAS.

Significant Investor Stream

The applicant must (on or after the time of application) make a complying significant investment of $5 million, invested into the following categories:

• at least $1 million in venture capital and growth private equity funds which invest in start-ups and small private companies;
• at least $1.5 million in approved managed funds. The managed funds must invest in emerging companies listed on the Australian Stock Exchange; and 
• a ‘balancing investment’ of at least $2.5 million in managed funds.

The applicant requires state or territory nomination, and each state/ territory will require the applicant to meet additional criteria under this stream:

• NSW;
• VIC;
• QLD;
• SA;
• WA;
• NT; and
• TAS.

Entrepreneur Stream

Under the entrepreneur stream, the applicant must:

• be under 55 years old; and
• undertake or propose to undertake complying entrepreneur activity.

The applicant requires state or territory nomination, and each state/ territory will require the applicant to meet additional criteria under this stream:

• NSW;
• VIC;
• QLD;
• SA;
• WA;
• NT; and
• TAS.

To meet the complying entrepreneur activity requirement, the entrepreneur activity must be related to either commercialising products or services in Australia or establishing a new business or enterprise in Australia. It cannot be an investment into:

• residential property;
• labour-hire company; or
• investing into an existing business or enterprise. 

Key Takeaways

The Business Innovation and Investment program is a key focus of Australian migration policy. Therefore, applicants who can satisfy the criteria of the 188 visa (in either stream) will receive preference. The changes impact applicants who have received an invitation after 1 July 2021. Applicants who received an invitation and applied for subclass 188 pre-1 July 2021 will be subject to the historical requirements. 

Evidently, the amendments reveal an increase in asset threshold, business turnover and the nature of investments. The objective of the Australian government is to attract business owners, investors and entrepreneurs with the capacity and potential to significantly and beneficially impact the Australian economy.  

If you require legal advice, our experienced immigration lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.

Frequently Asked Questions