The Australian Golden Visa Schemes such as Significant Investor visa (SIV) or Premium Investor Visa (PIV) offers quick path to “permanent residency” to high-net-worth (HNW) international investors as a part of benefits to Australian economy. The SIV requires “high net worth” individuals investing $5 million for a minimum of 4 years. The PIV is for highly talented and entrepreneurial “uber wealthy” individuals investing $15 million for a minimum of 12 months.
The SIV and PIV are part of a suite of Australian Government policy initiatives which aim to promote investment, innovation and commercialisation of Australian ideas, research and development which are critical to Australia’s economic future.
Australia is attractive country to immigrate for ultra high net worth family due to English language, lifestyle, and an abundance of career opportunities for children in Australia.
Golden Visas
The following visa types available for international investors offering permanent residence in Australia.
1. Significant Investor Visa (SIV)
Significant Investor Visa (SIV) holders are required to invest AUD 5,000,000 into complying significant investments for a minimum of four years before being eligible to apply for a permanent visa. The Premium Investor visa (PIV) is a stream within the Business Innovation and Investment (Provisional) (Subclass 188) visa and the Business Innovation and Investment (Permanent) (Subclass 888).
Here are the benefits of the Australian SIV 188C Visa:
- Low residency requirement (40 days per year for primary applicant)
- No English requirement
- No age limit
- No points testing
- Fast processing (Visa grants far quicker than other countries)
- Money can be gifted to spouse to become primary applicant
- Dependent children as sub-applicants
- Due to low residency requirement, the applicant doesn’t need to be an Australian resident for tax purposes.
- Ability to extend provisional visa by 2 x 2 year extensions
The following investment solutions qualify for the Significant Investor Visa (SIV), being:
- At least $500,000 in eligible Australian venture capital or growth private equity (VCPE) fund(s) investing in start-up and small private companies. The government expects to increase this to $1 million for new applications within two years as the market responds;
- At least $1.5 million in an eligible managed fund(s) or listed investment companies (LICs) that invest in emerging companies; and,
- A ‘balancing investment’ of up to $3 million in managed fund(s) or LICs that invest in a combination of eligible assets that include Australian listed securities, eligible corporate bonds or notes, annuities and real property (subject to the 10 per cent limit on residential real estate).
There is another category “Premium” investor visa which is aimed at attracting “Uber” wealthy individuals and families
2. Premium Investor Visa (PIV)
The Premium investor visa is a invite only scheme and most importantly the investment must create jobs and create economic benefit to Australia.
Foreign entrepreneurs must include AUD 15,000,000 over 12 months in complying investments, which include:
- Australian securities exchange listed assets
- Australian government or semi-government bonds or notes
- Corporate bonds or notes issued by an Australian exchange listed entity (or wholly owned subsidiary of the Australian listed entity) or investment grade rated Australian corporate bonds or notes rated by an AFS licenced debt rating agency
- Australian proprietary limited companies
- Real property in Australia excluding residential property
- Deferred annuities issued by Australian registered life companies
- State and territory government approved philanthropic donation.
Premium Investor visas cannot not be extended. The duration of a provisional Premium Investor visa is four years and three months. Premium Investor visa holders can apply for the subclass 888 permanent Premium Investor visa after twelve months, or they can remain on a provisional Premium Investor visa for up to four years and three months and apply for the subclass 888 at any time after having held their visa for twelve months, provided they maintain their complying premium investment.
Residency Requirements
To be granted a permanent Significant Investor visa, either the primary visa holder must be resident in Australia for at least 40 days for every year or part year that they have held a provisional Significant Investor visa. Or the spouse or de facto partner of the primary visa holder must be resident in Australia for at least 180 days for every year or part year that they have held a provisional Significant Investor visa.
The residence period does not need to be met per year but can be met cumulatively over the time the primary visa holder held the provisional visa.
There is no residency requirement under the Premium Investor visa. The visa holders are still required to comply with the ‘first entry date’ requirement which only applies to those applicants who are outside Australia at the time of the visa grant.
Citizenship
A child born in Australia to an Australian permanent resident or citizen parent will automatically be entitled to Australian citizenship. A child born outside of Australia to an Australian citizen parent will also be automatically entitled to Australian citizenship.
After four years of lawful residence in Australia, with at least the past 12 months as an Australian permanent resident, it is possible to apply for Australian citizenship. There is a Citizenship Appointment and Test that must be attended and passed, as well as a Pledge that must be made, before Citizenship will be granted.
It is compulsory for adult Australian citizens to vote in Federal, State and Local Government elections, and failure to do so may result in financial penalties. It is also a requirement for Australian citizens to exit and enter Australia using their Australian passport.
Australia allows dual citizenship.
Taxes
The Australian financial/tax year runs from 1 July to 30 June for individuals and business.
Income tax
Individuals must apply for a Tax File Number to be registered with the Australian Taxation Office and lodge annual tax returns. In most cases, tax from wages/salaries is withheld throughout the year and is known as ‘Pay as You Go’ (PAYG). Tax is charged on the income received from salary, wages, investments, shares etc.
The amount of income tax payable is based on how much you earn and your residence status. Australian residents are taxed on income sourced from both Australia and overseas, and are entitled to a tax-free threshold of AUD 18,200. Income tax rates are progressive, with the highest current margin at 45% for salaries over AUD 180,001. In most cases, residents are also required to pay a health care levy (the Medicare Levy), which is currently 2% of taxable income.
Non-residents are subject to tax only on Australian sourced taxable income, though the tax rates are higher. There are a series of tests to determine ‘Residence for Tax Purposes’ status, with the primary consideration being the ‘183 day test’.
Between 1 July 2014 and 30 June 2017, a Temporary Budget Repair Levy of 2% is payable on both resident and non-resident incomes over AUD 180,000 (exfin.com/australian-tax-rates).
Capital Gains Tax (CGT)
CGT applies to all capital gains made on the disposal of any asset, with the exception of the family home. Net gains are treated as taxable income and are subject to CGT. Net capital losses in a tax year may be carried forward and offset against future capital gains.
Inheritance Tax
This death duty was abolished in 1979, and CGT is not payable on the capital gain (or loss) of assets in an estate if they are simply passed on to beneficiaries. If, however, the asset is sold by the Executor and the proceeds are then distributed on, the sale of the asset is subject to CGT.
Goods and Services Tax (GST)
Australia has a GST of 10% which is charged on most goods and services consumed in Australia with the exception of basic foodstuff, education, medical services and government charges.
Corporate taxes
Businesses are liable for paying a number of taxes including Payroll Tax, Fringe Benefits Tax and Corporate Tax (which is charged at a flat 49% rate).
Double Tax Agreement
Australia has an extensive network of double tax agreements.
Golden Visa Statistics
Chinese are the leading investors in Australian golden visas followed by large increase in interest from Europe, South Africa and Expats in the Middle East as awareness increases.
As of 31 March 2017:
- 1778 SIV visas have been granted from the commencement of the programme on 24 November 2012.
o 1623 (subject to regulations prior to 1 July 2015)
o 155 (subject to regulations post 1 July 2015)
- AUD 8.890 billion has been invested in Complying Investments.
The table below shows government sponsor distribution of the SIV.
Significant Investor visa: Government sponsor distribution – 1 July 2016 to 31 March 2017.
| State | Expressions of Interest (EOI) submitted through SkillSelect | Invitation | Applications lodged | Visas granted (application lodged prior to 1 July 2015) |
Visas granted (application lodged on or after 1 July 2015) |
| Any | 7 | N/A | N/A | N/A | N/A |
| Austrade | <7 | <5 | <5 | 0 | <5 |
| ACT | <5 | 0 | 0 | 0 | 0 |
| NSW | 121 | 115 | 100 | 50 | 43 |
| NT | <5 | 0 | 0 | 0 | 0 |
| QLD | 19 | 18 | 15 | 5 | <5 |
| SA | 8 | 7 | 5 | 8 | 0 |
| TAS | 0 | 0 | <5 | 0 | 0 |
| VIC | 179 | 178 | 156 | 146 | 84 |
| WA | 5 | <5 | <5 | <5 | <5 |
| Total | 351 | 323 | 281 | 213 | 131 |
The table below shows the distribution of primary visa applications and visa grants for the top five source countries from the commencement of the programme – 24 November 2012 – 31 March 2017 for the SIV.
| Applicants for top five source countries |
Percentage of total visa applications |
Grants for top five source countries |
Percentage of total visas granted |
| China | 89.3 | China | 88.0 |
| Hong Kong | 3.2 | Hong Kong | 2.9 |
| Malaysia | 1.2 | Malaysia | 1.3 |
| South Africa | 0.8 | South Africa | 1.2 |
| Vietnam | 0.7 | Vietnam | 1.0 |
