Visa delays stall foreign investment
Figures obtained by Fairfax Media reveal just one "significant investor" visa has been approved, and the delays have cost the NSW and Victorian governments hundreds of millions in potential funds.
The significant investor visa gives residence to cashed-up applicants with $5 million or more to invest in Australia - without the usual age, language or residency requirements - and matches similar schemes in Britain, the United States, Singapore, Canada and New Zealand. After four years that residency becomes permanent.
More than 350 investors, each pledging at least $5 million, have been nominated by the NSW, Victorian, Queensland and West Australian governments since the program began in November.
An Immigration Department spokeswoman said processing times for applications under the significant investor visa program would be up to nine months as "the department develops organisational expertise for this new visa".
A range of background checks, including potential issues about health, character and national security, also affect processing times, the spokeswoman said.
The majority of significant investor visa applicants - both the expressions of interest and the invitations sent out - are from China.
The Victorian government nominated the first successful significant investor granted a visa under the scheme last month.
Applicants must invest at least $5 million over four years.
"They need to be able to show that their investment will provide a boost to GDP," the department spokeswoman said.
Investments can include government bonds, an ASIC-regulated managed fund or a direct investment into Australian companies. So-called sponsorship of the visa applicant becomes the responsibility of the state or territory governments.
NSW has nominated 163 significant investor visas so far and if all are approved, 30 per cent of the final contribution or $244 million will go towards the state's Waratah bonds. These funds are then used to help fund critical infrastructure projects, including roads and new rail links.
A spokesman for NSW Deputy Premier Andrew Stoner said: "So far the significant investor visa has been very popular and there are indications they will continue to attract strong demand from high value migrants."
Victoria has nominated 141 significant investors, Queensland 34 and WA 17.
Victorian Employment Minister Louise Asher said her government provided investment facilitation to all significant investors interested in additional business activity. "All applicants who meet the minimum Commonwealth government requirements for this visa and who can show that they are interested in living, investing or doing business in Victoria will be considered for nomination," she said.
Foreign visas
Red tape costs $1.7 billion
Frequently Asked Questions about this Article…
The Significant Investor Visa (SIV) is an Australian visa that gives residence to applicants who commit at least $5 million to invest in Australia. The visa waives the usual age, language and residency requirements, matches similar investor-immigration schemes in other countries, and after four years the residency can become permanent.
According to figures cited in the article, more than $1.7 billion in foreign investment is in limbo due to a slow visa approval process, and the delays have cost the NSW and Victorian governments hundreds of millions in potential funds.
The Immigration Department said processing times for SIV applications can be up to nine months while the department develops organisational expertise for the new visa. A range of background checks — including health, character and national security checks — can also affect processing times.
The article says the majority of SIV expressions of interest and invitations are from China. Since the program began in November, more than 350 investors (each pledging at least $5 million) have been nominated by state governments.
Qualifying investments can include government bonds, an ASIC‑regulated managed fund, or a direct investment into Australian companies. Applicants must invest at least $5 million over four years and show their investment will provide a boost to GDP.
State and territory governments nominate and become the sponsors responsible for SIV applicants. For example, NSW has nominated 163 applicants and if all are approved, 30% of the final contribution (about $244 million) would go towards the state's Waratah bonds, which fund infrastructure projects like roads and new rail links.
The article lists nominations as: New South Wales 163, Victoria 141, Queensland 34 and Western Australia 17.
States offer nomination and, in Victoria's case, investment facilitation to significant investors interested in additional business activity. Victorian officials said applicants who meet Commonwealth government requirements and can show they are interested in living, investing or doing business in the state will be considered for nomination.
Call 1300 880 160
Start a chat
Schedule a call
