In September 2021 South Australia opened for applications for the 188 Entrepreneur visa and announced it had made some changes to the eligibility criteria which make it much easier to get.  Previously this visa was limited to applicants who had already secured financial backing for their businesses but the new version is much more accessible.  For the right person with the right business proposal, the Entrepreneur visa can offer a path to Australian permanent residency.

Background

The Business Innovation and Investment Program encompasses Australia’s range of business and investment visas.  It incorporates the 188 visa and all its sub-streams, and the 888 permanent visa.  Once an applicant has completed their 5 year stay on the 188 visa, if they have fulfilled the obligations of their visa they may apply for the 888 visa which grants them permanent residency.  There are multiple streams under each visa heading but today we’re looking at the 188 Entrepreneur stream, also known as the Entrepreneur Visa - a visa for ambitious business people wanting to start an enterprise in Australia.

What are the Benefits of the 188 Entrepreneur Visa?

The Entrepreneur visa allows you and immediate members of your family to live and work in Australia.  After 3 years you can apply for permanent residency and eventually, citizenship too. 

Who Is Eligible?

To be eligible for the Entrepreneur Visa anywhere in Australia, you must meet the Federal Requirements.  The Federal Requirements for the 188 visa are that you must:

Federal Requirements

• Propose to undertake a business activity in Australia that will lead to the commercialisation of an innovative product or services in Australia
• Have at least a competent level of English
• Be nominated by a state
• Meet the health and character requirements
• Be under 55 years of age or be able to show your business will provide an exceptional economic benefit to Australia
• Sign a values statement
• Owe no debt to the Australian government, and
• Not have previously had a visa cancelled or an application refused.

In addition to these, you must comply with any additional requirements of the state you intend to live in.  The South Australian Requirements for the 188 Entrepreneur visa are that you must:

South Australian Requirements

• Intend to live in South Australia
• Propose your business be based in South Australia
• Be nominated by a Service Provider, and
• Provide a detailed proposal for your Australian business.

Who cannot Apply?

Unfortunately, holders of certain visas are deemed ineligible to apply for the South Australian Entrepreneur Visa.  You will be immediately refused if you are a holder of a:

• Student visa of any kind (including 500, 570, 571, 572, 573, 574)
• 403 Temporary Work visa, or
• 771 Transit visa.

Do I need to be in Australia to apply?

You can apply for the South Australian Entrepreneur visa from anywhere in the world! There is no need to be onshore.

Service Providers

In order to be eligible for the South Australian Entrepreneur Visa, you must be nominated by a Service Provider.  These Service Providers are a group of organisations dedicated to working with new and growing businesses. The Service Providers are:

• Stone & Chalk

• New Venture Institute (Flinders University)

• Moonshots

• Thinclab (The University of Adelaide)

• The Innovation & Collaboration Centre (UniSA)

What Types of Business does South Australia Want?

The proposed business must be likely to, in the opinion of the Australian Government, achieve the 888 Entrepreneur visa criteria within 5 years.  The criteria are divided into “Key Factors” and “Supporting Success Factors”.  You will need to demonstrate you are likely to meet either:

• 2 x Key Success Factors; or
• 1 x Key Success Factors and 3 Supporting Success Factors

Remember, you don’t need to already be fulfilling these criteria – you just have to show that you are likely to fulfil them in the next 5 years.  As far as what your business actually does, it doesn’t matter so long as it is likely to fulfil the criteria.  There are 3 prohibited categories:

1. Labour hire
2. Residential real estate
3. Purchasing an existing business,

And of course, your business idea needs to be legal and ethical.  So long as it fits the criteria and isn’t one of the prohibited categories, it could be anything from creative arts to space technology!

What about states other than South Australia?

The only other state that is accepting applications for the 188 Entrepreneur visa outside of South Australia is New South Wales (NSW) however the criteria for eligibility are higher in NSW.  In addition to meeting the Federal Requirements, the NSW Requirements are that you must:

New South Wales Requirements

• Already have funding secured for your business project;
• Funding must be secured from an approved entity (an Australian Government agency, publicly-funded research organisation, university, or an approved investor).
• Be nominated by an approved NSW Startup Program;
• Submit a detailed business proposal;
• Commit to living and working in NSW; and
• Have your business headquarters in NSW.

The difference here is that for an 188 Entrepreneur Visa in NSW, you must have already secured your funding. In South Australia, you need only show that you are likely to secure funding.

You can read more about the NSW program here.

How do I apply for the South Australian 188 Entrepreneur Visa?

The first step is to make an appointment to talk about your options with an experienced immigration lawyer or registered migration agent at Work Visa Lawyers who can go through the details of the 188 visa with you and make sure you are eligible, and that your intellectual property is protected.  If you meet the criteria, the next step is to commence discussions with one of the approved Service Providers (above) as you will need one of these groups to nominate you if you are to receive the Entrepreneur Visa.  If for any reason you do not meet the criteria, Work Visa Lawyers will assess your personal situation and advise what you need to do to qualify, or what alternative visa pathways might be available to you.

Being situated in Adelaide, South Australia, Work Visa Lawyers are uniquely positioned to help you with your South Australian Entrepreneur Visa application, and we would love to help you on your journey.

Australian Business and Significant Investor Visas Subclass 188 Closed - New Visa Expected in 2024! Read more here! 

Author:

Chris Johnston, Founder and Principal Lawyer at Work Visa Lawyers

Disclaimer

While every care is made to ensure this information is correct at the time of publication, it is subject to change without notice.  All information provided on this page is provided for purely educational purposes and does not constitute legal advice.  For advice on your personal situation, please speak with an Immigration Lawyer or a Registered Migration Agent.

Sources

https://immi.homeaffairs.gov.au/visas/getting-a-visa/visa-listing/business-innovation-and-investment-188/entrepreneur-stream

https://migration.sa.gov.au/visa-options/business-and-investment-visas/business-innovation-and-investment-provisional-visa#nav-requirements

https://www.nsw.gov.au/topics/visas-and-migration/business-and-investor/subclass-188e

Investor visas are one of the best ways to get permanent residency in Australia. If you want to move to Australia and you have the means to invest five million Australian dollars, the 188 Significant Investor visa might be ideal for you.

The Business Innovation and Investor 188 visa is the visa for experienced business people or high net-worth individuals. There are four streams of the 188 visa, depending on how much you are able to invest, but the Significant Investor visa is the stream with the most benefits. Here are 10 reasons we think you’ll love the Significant Investor visa.

Senator James Paterson, Chair of the Joint Committee in Intelligence and Security has announced that skilled visa applicants coming to Australia from Hong Kong will receive priority processing, a sentiment which Minister for Immigration Alex Hawke confirmed on 30 July 2021 on ABC Radio.  While filling the void in Australia’s skilled labour force is certainly a driving factor in this decision, Paterson said it was also a moral obligation and " the right thing to do after the Chinese Communist Party broke its promise to protect the freedoms of the people of Hong Kong."  While Australia is already fast-tracking business, investment, and global talent visas for Hong Kong nationals, this is a new opportunity for those who could not previously obtain an Australian visa to escape the political turmoil of their homeland. 

July is the start of the new immigration program year and this is the latest news on the upcoming changes for Australian immigration.

Minister for Immigration Alex Hawke made a statement on Wednesday 19 May on how the Business and Innovation and Investor Program will be changing in 2021.  New rules commence on 01 July 2021 and although the legislation is yet to be released, the Minister’s statement gives us a good idea how the program will operate moving forward and how the changes will affect you, the investor.

What is the Business Innovation and Investment Program?

The Business Innovation and Investment Program provides a path for people to migrate to Australia on the proviso that they financially invest in the Australian market.  This visa category is one of the fastest and easiest ways to get permanent residency and even citizenship in Australia.  It also allows you to bring your immediate family to Australia, something other visas have not always made easy.

What Are the Changes?

The new legislation has not yet been released so we do not have a full picture of the new system, but based on Minister Hawke’s statement, the following changes will occur as of 01 July 2021:

• The 132A and 132B Business Talent visas will no longer exist
• The 188D Premium Investor visa will no longer exist
• The ratios of the Complying Investment Framework are changing
• The threshold for the 188B Investor visa is increasing from $1.5 million to $2.5 million
• The 188B Investor visa will now have to invest in accordance with the Complying Investment Framework
• The term of all 188 visas will be 5 years, but complying visa holders will be able to apply for permanent residency after just 3 years

In summary, the new visas under the Business Innovation and Investment Program are:

How do I get Permanent Residency?

Under the old rules, holders of the 132 Business Talent visa were granted immediate permanent residency.  The changes are doing away with this visa and new applicants will have to spend some time as temporary visa holders before they can apply to become permanent residents of Australia.  Previously, temporary visa holders in the 188 stream could stay for 4 years and apply for permanent residency at the end of those 4 years.  This lead to something of a panic at the end of the 4 years, with visa holders scrambling to get paperwork formalised in time so that a visa extension would not be needed.  In order to grant more flexibility, 188 visa holders now have a temporary visa of 5 years but can apply for permanent residency after 3 years, provided they comply with the requirements.

The requirements vary slightly from case to case, but generally speaking to comply with the 188 and qualify for permanent residency, you must:

• Reside in Australia for at least 40 days per calendar year; and
• Your investment must adhere to the rules of the Complying Investment Framework.

Complying Investment Framework

The Complying Investment Framework sets out how the funds must be invested.  This framework has always existed for 188 visas but effective 01 July 2021, the percentages allocated into the various components will change. 

The components are:

• Venture Capital and Private Equity
  This is used to invest in Australian start-ups and small private companies.
• Approved Managed Funds
  This is used to invest in new companies listed on the Australian Stock Exchange (ASX).
• Balancing Investment
  the remaining total of investments can comprise any of the above 2 categories.

Perhaps the most significant change of the announcement, is that the holders of 188B Investor visa must now also comply with the Complying Investment Framework (CIF).  Prior to this change, holders of the Investor visa could invest their funds into Australian Government bonds.  The change has been made to ensure the money coming from investor visas goes to new businesses and creates local jobs.  While the CIF is a slightly higher risk venture than government bonds, we hope that potential applicants can see the reasoning behind the change and that it does not dissuade them from their plans to move to Australia.

Entrepreneur Visa

The Entrepreneur visa is the lowest threshold investment visa, requiring an investment of $200,000.  The Department of Home Affairs announced in December 2020, that the required assets of the applicant would increase from $800,000 to $1.25 million in July 2021, but yesterday’s announcement was silent on any further changes to this visa.  We await the release of the new legislation which will give us all the details on whether anything else is different.

Tax Improvements

Historically, tax for investors in Australia has been needlessly complicated.  Following the 2021-2022 Federal Budget announcements it appears the government intends to simplify the tax rules for visa holders.  The Australian government plans to replace the existing framework with a new set of rules that are easy to understand and apply.  This should reduce the cost of complying with the rules, and provide more certainty for investors.

One new rule is that any person who physically resides in Australia for 183 days or more in a year will be considered an Australian tax resident.  Those who have been here for fewer than 183 days will have other criteria but the government assures us these will be simpler and based on measurable facts.

If Australian tax law was putting you off investing in Australia, it is worth revisiting the idea with your financial advisor.

What Now?

If you have the means to invest and you are considering a move to Australia, the Business Innovation and Investment Program remains one of the best pathways to entry, even after the changes.  You don’t need to worry about things like points or skills assessments, you can bring your spouse and children with you, and you can apply for permanent residency – now in only 3 years!  Of course this is a big decision and we recommend you speak to an experienced lawyer and an independent  financial advisor *  Make an appointment with Work Visa Lawyers today to discuss whether this is the right visa for you.

*Work Visa Lawyers are not financial advisors and cannot provide you with financial advice – you should also speak with an independent financial advisor before making any investment decisions.

Australian Business and Significant Investor Visas Subclass 188 Closed - New Visa Expected in 2024! Read more here! 

Author

Chris Johnston, Principal Lawyer and Founder of Work Visa Lawyers

Do you need help?

Our team of experienced Immigration Lawyers and Migration Agents look forward to assisting you with your Australian visa or appeal.

Based in Adelaide South Australia, we provide Australian Immigration advice to people and businesses from all over the world.

If you require further information regarding your Australia visa options you can contact us through:

(08) 8351 9956 or +61 8 8351 9956 or This email address is being protected from spambots. You need JavaScript enabled to view it.

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SOURCES:

• 17 December 2020, Australian Government, Alan Tudge press release, URL: https://www.homeaffairs.gov.au/reports-and-publications/submissions-and-discussion-papers/biip-getting-better-deal-australia.

• 19 May 2021, Australian Government, Alex Hawke press release, URL: https://minister.homeaffairs.gov.au/AlexHawke/Pages/getting-a-better-deal-for-australia-from-visa-investments-19-05-2021.aspx.

• Federal Budget 2021-2020 Fact Sheet, Australian Government, URL:
  https://budget.gov.au/2021-22/content/factsheets/download/factsheet_tax.pdf