Millionaires skip visa queue with investment cash

23 Nov 2012, 2:36 pm   -   Source: Andy Park, SBS
Share This
0 
+ Comment
13
Cash for visas: A relaxation on skilled migration rules will fast-track wealthy investors with $5 million dollars to invest. (FILE:AAP)

Cash for visas: A relaxation on skilled migration rules will fast-track wealthy investors with $5 million dollars to invest. (FILE:AAP)

A new migration program will allow those with $5 million dollars investment capital to skip over skilled migration requirements, a timely remedy for Australia’s youthful start-up ecosystem, writes Andy Park.

RELATED

Wealthy foreign nationals who can bring $5 million dollars to Australia will be allowed to bypass the skilled migration system.

The Department of Immigration and Citizenship’s (DIAC) Significant Investor Visa, or the so-called “golden ticket" visa, commences tomorrow.

It relaxes requirements such as English proficiency and a minimum stay in Australia, in return for capital input in a list of endorsed investments.

The government will reportedly allow 700 wealthy investors into the country, with a potential of $3.5 billion dollars worth of investment to the Australian economy.

The Minister for Immigration and Citizenship, Chris Bowen MP, said the new visa is consistent with countries such as the United Kingdom, Canada and New Zealand, which provide for migration on the basis of investment of a specified size and conditions.
 
“The Significant Investor visa is an important new tool in the armoury of Australia’s financial services sector as Australia looks to compete in our region for high wealth and high skilled migrants and the capital that comes with them.”
 

 WHAT MUST THEY INVEST IN

• Infrastructure projects in Australia
• Cash held by Australian deposit taking institutions
• Bonds issued by the Commonwealth or a State or Territory government
• Bonds,  equity, hybrids or other corporate debt in companies and trusts listed on an
Australian stock exchange
• Bonds or term deposits issued by Australian financial institutions
• Real estate in Australia; and
• Australian agribusiness.

It’s being seen by some as a remedy for cashless state-based infrastructure projects and embryonic innovation industries, such as technology start-ups.

A report released by Deloitte showed that fewer than 5 per cent of Australian start-ups are scaling into sustainable, global businesses.

Added to that is the tough local market for innovation investment, for example in the US, companies are raising 4.8 times more capital in the early stages and 100 times more when they are ready to scale their operations up.

Joshua Tanchel from Deloitte says that the influx of capital may focus the ambitions of those in the under-performing start-up ecosystem.

“Asian investors with capital understand the resource story very well. Entrepreneurs and start-ups are the greatest natural resourse of this country, yet we are choosing to leave them in the ground because we are starving them of capital and the oxygen to breathe," he said.

Australian-Indian business leader technology industry and Neville Roach AO has advised both Indian and Australian governments on migration policy.

Mr Roach himself was a skilled migrant from southern India, but says DIAC’s relaxation of the migration rules is exactly what Australia needs to remain competitive, especially in new business generation.

"I think we should be doing more of that,” he said.

“The start-up system in Australia has surprisingly achieved far less than one would hope from a country that has a considerable amount of innovative capability and a good track record.”

WHAT INVESTMENTS QUALIFY

• The company must genuinely operate a qualifying business in Australia
• The applicant must obtain an ownership interest in the company
• The company must be registered with ASIC; and
• The business must have an Australian Business Number.

Mr Roach said that there needs to not only be checks on the revised system to ensure that the investment capital is being put to good use.

“There are also questions that would have to be put to economic modellers, the flow of money may put some upward pressure on the dollar.”

But overall, he feels that if we do not continue to attract overseas students, highly-skilled workers and investment capital with visa programs like the one commencing tomorrow, all three will go elsewhere.

“In many ways this is not that different to what used to be called the investment led visa.”

“There needs to be some flexibility to allow for innovation."

Visa , Andy Park SBS

  • Follow us: 
  • Follow us on Facebook
  • Follow us on Twitter
  • Follow us on Youtube

Your Comments

Display: 20 | 40 | All comments per page
Previous 10 | Page 1 | 2 | Next 10

now we are all corrupt

phw - from canberra, 6 months ago

finally the government has elevated corruption to a national virtue. We can start spending again!

If its good enough for the goose..

Aubrey - from perth, 6 months ago

If they have the acumen to make money in third world countries, they would probably clean up in Australia much more quickly -.. Is there any restriction on What they can send back - when thier businesses thrive by putting long established family businesses here out of business - for other family members to Re Present the same cash to accommodate more of that family? -

Wrong wrong wrong!!!

swallow - from Parramatta, 6 months ago

The new policy allows criminals to wash the black money white. Those wealthy ones who robbed their own people first. Now they can escape and come to corrupt our system. Then their entire family will rely heavily on our social welfare, because they can apply for tax benefits, youth allowance, Medicare etc. Unfortunately either LAP or coalition have exactly the same policy. our govt doesn't have high vision but so short sighted.

america

mark - from moonta, 6 months ago

This is how it works in america the 1% rules and are immune from prosecution by paying of the pollies anyone who watched the program why poverty will understand this.But what i cannot understand is why a labor party would implement conservitive style american policy.Maybe its time to stop voting for the two right wing liberal parties and start voting for independents or the left of politics greens or are people happy with the rich geting richer and the poor geting poorer.

Open door for rich criminals

Concerned - from Sydney, 6 months ago

Did they not think that this would just allow rich crimnals to send their criminal buddies and themselves to our country?

That's how it is.

Gaz - from Melbourne , 6 months ago

That's the way the world works.

Sheesh

Sarah - from Launceston, 6 months ago

So the criminally wealthy, millionaire, people smugglers can get granted a visa but asylum seekers get put behind bars, sheesh! What is happening?!

Underclass

David - from VIC, 6 months ago

ALP Doug Cameron was more interested in asylum seekers becoming underclass with the new policy by his party. This is a good example of how his party has been creating an underclass thus far in Aus with all these foreigners coming in with black money into Aus under the fasle pertends of doing business but it is yet another immigration means to Chinese and Indians to bring their villages here to create getos in our once safe, clean and harmonious country. Aussie are underclass!!!! ALP doesn't care

Watch out for recycled-investment

Barry - from Castlecrag, Sydney, 6 months ago

Some years ago, the government put up visas for 'Investment Migrants' for foreigners to bring in $1 million to satisfy the entry criteria. Immediately, there was a flood of applications. Once approved and they have arrived, the money was sent back overseas to their friends and relatives to apply again. It wasn't after an extended period before the hole was plugged. Watch out this time!

About time

Mr B - from Brisbane, 6 months ago

About time we took in more migrants that can pay their way and not be a burden on the welfare system. Plus in these tough economic times having the extra liquid finance in our economy is a great help

Display: 20 | 40 | All comments per page
Previous 10 | Page 1 | 2 | Next 10

Join the Discussion

Name
City / Suburb E.g. Artarmon, Sydney
Title
Comment
You have characters remaining.
Validation
What's this?
This is a captcha-picture. It is used to prevent mass-access by robots.
All submitted comments become the property of SBS. They are moderated, so we reserve the right to edit comments and remove HTML tags. Not all submitted comments will be published. Publication does not mean we endorse the opinions expressed. Please read our terms and conditions for more information.