Significant Investor Visa – update to complying investments

On 25 July 2013, the Minister for Immigration and Citizenship, Mr Tony Burke, issued an updated list of investments that are permitted to be held through managed funds for the purposes of maintaining complying investments in relation to a Significant Investor Visa (Subclass 188 Business Innovation and Investment (Provisional) visa and the Subclass 888 Business Innovation and Investment (Permanent) visa).

The Significant Investor Visa is available to applicants who meet certain criteria, including holding $5M in complying investments for a minimum of 4 years.  Complying investments are Commonwealth, State or Territory bonds, ASIC regulated managed funds with a mandate for investing in Australia and direct investment into Australian proprietary companies. 

The changes made by the Minister to the investments permitted in managed funds were made in instrument IMMI 13/092 and apply from 23 November 2013.

Below is a list of investments permitted to be held in managed funds in order for the fund to be a complying investment.  

  1. Infrastructure projects in Australia;
  2. Cash held by Australian ADIs (including negotiable certificates of deposit, bank bills and other cash-like instruments);
  3. Bonds issued by Commonwealth, State or Territory Governments;
  4. Bonds, equity, hybrids or other corporate debt in companies and trusts listed or expected to be listed within 12 months on an Australian stock exchange;
  5. Bonds or term deposits issued by Australian financial institutions;
  6. Real estate (Real property) in Australia;
  7. Australian Agribusiness;
  8. Annuities issued by an Australian registered life company in accordance with section 9 or 12A of the Life Insurance Act 1995;
  9. Derivatives used for portfolio management and non-speculative purposes which constitute no more than 20 per cent of the total value of the managed fund;
  10. Loans secured by mortgages over the instruments listed in (1) to (8); and
  11. Other ASIC regulated MISs that invest in the above listed investments.

The changes made to the investments that may be held though managed funds provides greater flexibility for fund operators whilst maintaining the eligibility of the fund as a complying investment for Significant Investor Visa applicants.