{"id":5220,"date":"2015-10-02T20:37:02","date_gmt":"2015-10-02T20:37:02","guid":{"rendered":"https:\/\/www.investmentimmigration.com\/?p=5220"},"modified":"2019-02-12T14:49:38","modified_gmt":"2019-02-12T19:49:38","slug":"demand-for-australia-revamped-significant-investor-visa","status":"publish","type":"post","link":"https:\/\/www.investmentimmigration.com\/demand-for-australia-revamped-significant-investor-visa\/","title":{"rendered":"Tepid Demand for Australia\u2019s Revamped Significant Investor Visa"},"content":{"rendered":"

Australia has received just 7 new applications under its new significant investment visa program<\/a> following the introduction of important modifications to its programs in July 2015.<\/p>\n

Prior to the changes, between November 2012 and June 2015, the significant investment visa program received approximately 2100 applications and attracted foreign direct investment of AUS $4.3 billion from 858 approved applicants. There were 1240 pending applications when the program was suspended.<\/p>\n

It appears that since the introduction of the new rules in July 2015, Chinese investors, who accounted for close to 90% of all applications under the previous program, have become unenthusiastic about Australia.<\/p>\n

Why was the Australian SIV Modified?<\/strong><\/p>\n

High demand for the Significant Investor Visa, especially from wealthy Chinese investors, combined with an overheating real estate market in Sydney, Melbourne, and other Australian cities led to calls for suspension of its investment immigration program.<\/p>\n

Critics pointed out that applicants were gaining permanent residence by making relatively small investments in safe and non-productive asset classes. The SIV was also criticized for failing to promote innovation and for not contributing adequately to the Australian economy.<\/p>\n

Further, fears that funds obtained through corrupt and illegal means were flowing into the country led to the introduction of the revised rules.<\/p>\n

Authorities have responded by imposing higher investment limits, mandating minimum investments into high-risk ventures, and suspending the loan-back arrangement that allowed applicants to use the funds invested as collateral security to borrow money from financial institutions in the country.<\/p>\n

Tepid Demand for\u00a0Australia\u2019s Revamped Significant Investor Visa<\/strong><\/p>\n

On the question whether the new rules have scared away investors, authorities point out that investment immigration applicants often take time to familiarize themselves with the modified rules. The official position is that it is too early to conclude that the new rules have led to the significant fall in demand for the SIV.<\/p>\n

The government anticipates inflow of around A$375 million into venture capital funds investments over the next three years. In 2014, venture capital funding fell by 21% to just A$120 million. The SIV further requires applicants to invest at least A$1.5 million in emerging companies wth market capitalization of less than A$500 million.<\/p>\n

The significant fall in demand represents a significant challenge for nations seeking to attract FDI through investment immigration. It remains to be seen whether investors can be convinced to look beyond safe asset classes and invest in riskier assets in order to gain permanent residence in Australia.<\/p>\n

General Information: <\/strong>Contact Us<\/strong><\/a> to receive more information about Australia\u2019s Revamped Significant Investor Visa<\/strong>.<\/p>\n

Interested Investors<\/strong>: Kindly complete the following form<\/strong><\/a> and we will contact you to discuss your global residency and citizenship investment options.<\/p>\n

Source<\/strong>: ft.com<\/p>\n","protected":false},"excerpt":{"rendered":"

Australia has received just 7 new applications under its new significant investment visa program following the introduction of important modifications to its programs in July 2015. Prior to the changes, between November 2012 and June 2015, the significant investment visa program received approximately 2100 applications and attracted foreign direct investment of AUS $4.3 billion from…<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"footnotes":"","_jetpack_memberships_contains_paid_content":false,"jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[454],"tags":[],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p8hnWW-1mc","jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.investmentimmigration.com\/wp-json\/wp\/v2\/posts\/5220"}],"collection":[{"href":"https:\/\/www.investmentimmigration.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmentimmigration.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmentimmigration.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmentimmigration.com\/wp-json\/wp\/v2\/comments?post=5220"}],"version-history":[{"count":0,"href":"https:\/\/www.investmentimmigration.com\/wp-json\/wp\/v2\/posts\/5220\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmentimmigration.com\/wp-json\/wp\/v2\/media?parent=5220"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmentimmigration.com\/wp-json\/wp\/v2\/categories?post=5220"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmentimmigration.com\/wp-json\/wp\/v2\/tags?post=5220"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}