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 Victorian and NSW 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 Victorian, NSW, Queensland and Western 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," said the spokeswoman for the Immigration Department.
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.
Victoria has nominated 141 significant investors, Queensland 34 and WA 17.
Victorian Minister for Employment Louise Asher told Fairfax Media that the Victorian government also provided investment facilitation assistance 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 by the Victorian government," Ms Asher said.
Frequently Asked Questions about this Article…
The Significant Investor Visa (SIV) is an Australian residency pathway for high‑net‑worth applicants who commit at least $5 million to invest in Australia. It waives the usual age, language and residency requirements, and after four years that residency becomes permanent.
More than $1.7 billion is in limbo because the federal visa approval process for significant investor visas has been slow. Fairfax Media figures show only one 'significant investor' visa approved so far, and processing delays have held up funding earmarked for state projects.
The Immigration Department has said processing times for SIV applications could be up to nine months while the department develops expertise for the new visa. Processing can also be extended by background checks on health, character and national security.
The article reports that the majority of SIV applicants—both expressions of interest and invitations—are from China. Since the program began in November, more than 350 investors have been nominated by state governments.
Applicants must invest at least $5 million over four years. Acceptable investments include government bonds, an ASIC‑regulated managed fund, or direct investments into Australian companies. The Immigration Department says applicants need to show their investment will provide a boost to GDP.
State and territory governments nominate and sponsor applicants; that sponsorship becomes the responsibility of the nominating jurisdiction. For example, NSW has nominated 163 people, Victoria 141, Queensland 34 and WA 17, and Victoria nominated the first successful SIV recipient.
Visa delays have postponed funding for critical infrastructure projects. The article notes that if all NSW nominations are approved, 30% of the final contribution—about $244 million—would go toward the state's Waratah bonds, which fund roads and new rail links. Delays have therefore cost Victorian and NSW governments hundreds of millions in potential funds.
States consider applicants who meet the Commonwealth's minimum SIV requirements and who can show interest in living, investing or doing business in that state. The Victorian government, for example, has offered investment facilitation assistance to significant investors interested in additional business activity.
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