The Australian government has ramped up requirements for the Investor visa to Australia as part of a number of changes to the Business Innovation and Investment Program (BIIP).
According to the new changes, Investor visa holders in Australia are now required to allocate at least half of their funds to Australian startups and other emerging companies.
Investor and Significant Investor visa holders in Australia will now have to invest 20 per cent of their funds into venture capital or private equity funds, with another 30 per cent going into managed funds for growth companies.
The total investment requirement for the Investor stream is also set to increase from $1.5 million to $2.5 million.
For Significant Investors, the investment requirement will rise to $5 million.
The investment breakdown for Significant Investors will be $3 million into managed funds, $1.5 million into an eligible managed fund or into local emerging companies, and $500,000 into Australian VC or growth private equity funds.
In simpler terms, Investor visa holders will now have to invest $1.25 million into Australian startups or emerging companies, and Significant Investors will have to put in $2.5 million.
Speaking on the upcoming changes, Australian Immigration Minister Alex Hawke said that the reforms will ensure more funding and support for local tech firms and emerging companies in Australia.
He also said that these changes will directly benefit the commercialisation of Australian ideas, as well as research and development.
The Australian Investment Council chief executive Yasser El-Ansary also spoke on the changes, saying that they will now support fast-growing businesses with an important flow of capital.
Mr El-Ansary also said that the changes will directly lead to job creation opportunities in Australia, and aid the growth, development and expansion of innovative companies which will benefit the economy.
Investors and Significant Investors can obtain permanent residency in Australia by applying for business migration through the Business Innovation and Investment Program (BIIP).
These reforms, after being originally proposed in 2017, will come into effect from July of this year, along with a number of other ameliorations to the Business Innovation and Investment Program (BIIP), which include reducing the program to four streams – Business Innovation, Entrepreneur, Investor and Significant Investor.