The subclass 188 Business and Investment Visa is a state-nominated four year provisional visa that provides a direct pathway to permanent residency through four distinct streams. The 188 visa operates on a points-based system based on factors such as your age, English language ability and qualifications. The Investor Stream of the 188 visa will specifically award additional points based on the number of years you held an eligible investment and your net personal assets, as is consistent with the overall purpose of this stream.
Business Innovation and Investment (Provisional) Visa (subclass 188) – Business Investor Stream
The Investor Stream of the 188 visa requires you to invest a minimum of AUD 1.5 million in Australian State or Territory Government bonds for at least four years and demonstrate that you have net business and personal assets of at least AUD 2.25 million to be transferred to the nominating State or Territory within two years after the grant of the visa. You must commit to living and holding the investment within the nominating State or Territory for the four year period in order to be eligible for the permanent subclass 888 visa.
Business Visa Eligibility Criteria
One of the key criteria of the Investor Stream is the requirement to demonstrate overall a successful record of eligible investment activity. An eligible investment is any of the following, provided that you own it for the purpose of producing a return in the form of income or capital gain, and not for personal use.
- an ownership interest in a business;
- cash on deposit;
- stocks or bonds;
- real estate;
- gold or silver
In support of your application, you are expected to provide a statement of management activity detailing your active management of eligible investments for one (1) fiscal year in the five (5) fiscal years’ immediately preceding the visa application.
Statement of Management Activity
The statement of management activity allows you to demonstrate your direct involvement in the management of your eligible investments. You may choose any fiscal year from the previous five for which you are able to evidence your direct involvement in management, but it is expected that this statement be presented chronologically on a year-by-year basis. The total net value of the eligible investments should be at least AUD 1.5 million and must be owned by you or you and your spouse or de facto partner together.
The purpose of this statement is to demonstrate your level of involvement in the decision-making, so if you have invested in a managed fund, for example, then you must show that you have made an informed decision on which fund to invest in and not merely relying on a broker or financial adviser. It is essential that you demonstrate a high level of management skill in managing your portfolio, no matter the investment. This is what will be assessed and the statement of management activity is the method you will use to establish this.
How to Demonstrate Management
You should aim to demonstrate that you have exercised responsibility in making key decisions concerning the evaluation, selection, purchase and sale of the investments. You may show your direct and continuous involvement in managing your investments by expanding on the following activities, including:
- performance of the investments and your role in managing them;
- the source of funds for new investments;
- evaluation and selection of investments;
- returns achieved;
- why assets were sold; and
- how funds were dispersed
While describing the above, you must always refer to your direct and continuous involvement as this is the main criteria behind the visa.
There are many ways in which you can account for your overall level and involvement in the management of your investments. It’s important to be thorough and specific when detailing your management activity. No Borders Law Group is experienced in assisting clients with their investment visas and preparing a quality and detailed statement of management activity. Contact us today and speak with one of our migration lawyers for a free initial assessment and advice on how to structure your statement.
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