Australian Business Innovation and Investment Visa Streams (Subclass 188)

Introduction?

Australia's Business Innovation and Investment Visa (Subclass 188) offers a pathway to residency for individuals with a strong entrepreneurial spirit and investment capabilities. This visa program features five distinct streams, each tailored to specific criteria and objectives. In this article, we will explore four of these streams: the Investor Stream, Significant Investor Stream, Entrepreneur Stream, and Business Innovation Stream, summarising their differences.?

Business Innovation Stream?

The Business Innovation Stream is aimed at individuals with a proven business background who wish to own and manage businesses in Australia. Here are the key criteria:?

1. Nomination: Applicants must be nominated by an Australian State or Territory government agency.?

1. Business Ownership: Over the two fiscal years preceding the invitation to apply, applicants must have owned a stake in one or two businesses with turnovers of AUD 500,000 each (for invitations before July 1, 2021) or AUD 750,000 each (for invitations on or after July 1, 2021). Ownership percentages vary based on business turnover.?

1. Financial Assets: Applicants, along with their partners, must possess net business and personal assets totalling at least AUD 1.25 million (for invitations on or after July 1, 2021) or AUD 800,000 (for invitations before July 1, 2021).??

1. Points Test: A minimum score of 65 points on the points test is required.?

1. Business Experience: Applicants must have a successful business career and a genuine desire to continuously own and manage a business in Australia.?

1. Age Requirement: The standard age limit is 55, but exemptions may be granted if the business is expected to offer exceptional economic benefits.?

Entrepreneur Stream?

The Entrepreneur Stream targets individuals with innovative ideas and a genuine intention to undertake entrepreneurial activities in Australia. Here are the key requirements:?

1. Invitation: To apply for this visa, applicants must receive an invitation from an Australian State or Territory government agency.?

1. Nomination: Nomination by a State or Territory government agency is a prerequisite.?

1. Age Limit: The standard age limit is 55, unless the proposed entrepreneurial activity is deemed to offer exceptional economic benefits.?

1. Complying Entrepreneur Activity: Applicants must engage in or propose a complying entrepreneur activity in Australia with the intention of commercialising a product or service or developing an enterprise or business. The activity should not involve residential real estate, labour hire, or the purchase of an existing enterprise or franchise in Australia.?

1. Endorsement (Post-July 2021): If invited to apply on or after July 1, 2021, applicants must be endorsed by their nominating State or Territory government agency to develop their entrepreneurial concepts.?

Investor Stream?

The Investor Stream of the Subclass 188 visa is designed for individuals who possess a significant investment background and are willing to make substantial financial commitments to the Australian economy. Here are the key criteria:?

1. Nomination: To be eligible, applicants must first be nominated by an Australian State or Territory government agency before they can apply for this visa.?

1. Investment Experience: Applicants should have managed a qualifying business or eligible investments for at least one of the five fiscal years immediately before receiving an invitation to apply. This requires a 10% ownership interest and ownership of AUD 2.5 million, either individually or jointly with a partner.?

1. Financial Commitment: Before receiving an invitation, applicants must have business and personal assets with a net value of at least AUD 2.5 million for two fiscal years.?

1. Investment Requirements: Investors are required to invest specific amounts in various categories, including AUD 500,000 in venture capital and growth private equity funds, AUD 750,000 in approved managed funds focusing on emerging companies listed on the Australian Stock Exchange, and a 'balancing investment' of at least AUD 1.25 million in managed funds.?

1. Management Experience: Applicants must have at least three years of experience managing qualifying businesses or eligible investments and a successful track record in these areas.?

1. Points Test: A minimum score of 65 points on the points test is required.?

1. Residence Intent: Investors must intend to live in a specific state or territory for at least two years, corresponding to the location of their investment.?

1. Age Requirement: The standard age limit is 55, unless the State or Territory government agency deems the investment to be of exceptional economic benefit.?

Significant Investor Stream?

The Significant Investor Stream is tailored for high-net-worth individuals seeking to make substantial investments in Australia. Here are the key requirements:?

1. Nomination: As with the Investor Stream, applicants must be nominated by an Australian State or Territory government agency.?

1. Investment Amount: A minimum investment of AUD 5 million is required.?

1. Investment Allocation: Significant investors must allocate at least AUD 1 million to venture capital and growth private equity funds, AUD 1.5 million to approved managed funds focusing on emerging companies listed on the Australian Stock Exchange, and a 'balancing investment' of AUD 2.5 million in managed funds.?

Conclusion?

The Business Innovation and Investment Visa (Subclass 188) presents a range of opportunities for individuals looking to invest, innovate, and contribute to the Australian economy. Understanding the specific requirements of each stream—Investor, Significant Investor, Entrepreneur, and Business Innovation—is crucial for potential applicants to make informed decisions regarding their Australian visa journey. Whether you are a seasoned investor, a visionary entrepreneur, or an experienced business owner, there is likely a pathway within this visa program that aligns with your goals and aspirations.?

Get in touch with us to learn more or to start your application process for the visa mentioned above.?