What exactly is the Business Innovation and Provisional Investment Visa?

Why would an applicant decide to apply for a Business Innovation and Provisional Investment Visa by comparison to Employer Nomination Scheme or Regional Sponsored Migration Scheme or General Skilled Migration?

Firstly, this visa is provisional, meaning that unless certain conditions are met, a holder of subclass 188 visa will not be able to transition to 888 Permanent Visa.

There are six different categories within the 188 visa framework:

  • Business Innovation  (188A)

This temporary visa stream is for people with business skills. It allows holders to operate a new or existing business in Australia. Strong business acumen must be demonstrated at the time of application.

  • Investor   (188B)

This temporary visa stream allows holders to own and manage a business in Australia, conduct business and investment activity in Australia or undertake an entrepreneurial activity in Australia

The three eligible investment requirements under the Investor stream are as follows:

  1. a total of at least 3 years’ experience of direct involvement in managing one or more qualifying businesses or eligible investments
  2. the applicant and/or their spouse or de facto partner to have net assets of at least AUD 2 250 000. These net assets may include, but are not limited to, eligible investment asset.
  3. the applicant to have maintained direct involvement in managing the eligible investments of the applicant and/or their spouse or de facto partner for at least 1 of the 5 fiscal years immediately before the application was made, with the total net value of the eligible investments being at least AUD 1 500 000.
  • Significant Investor  (188C)

Significant Investor or SIV, is suitable for individuals who invest at least AUD 5 000 000 in Australian investments that meet certain requirements and maintain investment activity in Australia. Austrade is the responsible agency for the design of complying significant investment policy.  Investments must be provided by an Australian Financial Services (AFS) licenced manager domiciled in Australia, and must be independent of the applicant and their spouse/ partner. Investments are also permitted through a complying ‘Fund of Fund’ or an Investor Directed Portfolio.

  • Premium Investor (188D)

A special stream reserved for individuals with at least AUD 15 000 000.  To date, no PIVs have been granted due to tight regulatory requirements.

  • Entrepreneur (188E)

This final stream is reserved for those wishing to carry out entrepreneurial activities in Australia.

It is not possible to make an application for any of the above mentioned streams without receiving an invitation.

However, this may be a viable option above others if the applicant is over the age of 45 (general cut off for many skilled permanent visas) as the age limit is set at 55.  Applicants over the age of 55 may be eligible to apply provided that certain criterion is met.  The age exemption selection criteria will vary from State to State.

Generally working on a subclass 188 requires a number of resources including sound immigration advice as well as assistance with investment and compliance.  For further information, please contact us at (08) 9429 5111 or email us at advice@perdaman-gs.com.au.