January 11

SIV and Investor Visa Update | Dec 21

SIV & Investor Visa Update: Dec 2021

As another year draws towards a close, we would like to thank everyone for their support over 2021. What has been a challenging but rewarding year it has been.

Over 2021 we have had the privilege to work with many migration professionals to help visa applicants to obtain their Investor Visas, Significant Investor Visas and their 888 Permanent Residency Visas.

2021 has been a year of change, of highlights and precedents.

New Rules from 1 July 2021

Changes to the BIIP that came into force on 1 July 2021 has as from our experience lead to a large increase in enquiries for the 188b Investor Visa, with no noticeable downturn in demand for the 188c Significant Investor Visa.

Along with the usual strong demand from the top five source countries China, Hong Kong, Malaysia, Vietnam, and South Africa, we are seeing increased demand from the UK, Thailand, India, Japan, Cambodia, Myanmar, Sri Lanka, and Iran .

It is important to remember that the Australian Government does not discriminate on race, religion, or nationality for visa applications. The DHA has made it clear that all visa applicants must meet the legal criteria for the visa they have applied for. If applicants meet all health and character requirements, then a visa is granted, regardless of where a person is domiciled at time of application.

The Ord Minnett team supports Australia’s stand on anti-discrimination and works with clients from all races, religions, and nationalities.

States and territories

The changes introduced Business Innovation and Investment Program (BIIP) and the Complying Investment Framework (CIF) were designed to maximise the economic contribution of these visas to Australia and help support Australia’s post-COVID-19 economic recovery.

Most state nomination requirements for the subclass 188 and subclass 888 visas are generally the same as those required by the Department of Home Affairs (DHA). However, there has of late been a number of states that have introduced some strict or unique criteria of their own.

NSW - for example, will refuse a nomination application for a provisional visa 188b IV or the 188c SIV and the permanent visa (subclass 888) if you cannot show your complying investments meet their strict percentage-based and definition based, investment criteria. The feedback we have been receiving from the migration, investment community and IV and SIV applicants are that these strict criteria are difficult to satisfy and add another layer of complexity to the already complex and multi-faceted DHA complying investment framework.

For South Australia, the choice of investment options is based on the client’s own preference and Department of Home Affairs complying investment requirements. However, the complying investment fund or funds must be of material benefit to South Australia. So it’s important that applicants get advise on an investment solution that they are comfortable with, and will be acceptable to SA .

If you are over 55 years of age and want South Australia to nominate you for the 188b IV, then you will need to maintain compliant investments of A$3.75M in lieu of the DHA requirement of A$2.5M. This is a substantial premium and needs to be taken into consideration when considering a SA state nomination.

Western Australia’s state nomination requirements for the subclass 188 and subclass 888 visas are as per the CIF requirements of the Department of Home Affairs (DHA). However, applicants seeking WA State nomination for the permanent residency Investor visa subclass 888 and the Significant Investor visa subclass 888 must agree to reinvest their maturing complying investment funds into Western Australian assets and provide details of the investments when making their application.

For those of you with clients targeting a Western Australian nomination we can assist them to comply via a bespoke investment portfolio that complies with Western Australia’s top strict criteria.

It is great that the other states are starting to take Victoria’s lead and make the strong recommendations on their sites that applicants should seek professional financial and investment advice to fully understand their investment options.

Tasmania’s program recognises the significant contributions business migrants make to Tasmania’s economic growth and cultural diversity. Tasmania seeks successful business owners, innovators, and entrepreneurs with the ability to operate businesses and develop business concepts that will genuinely benefit Tasmania’s economy.

It is interesting to note that Tasmania is not offering any spots for the Investor and Significant Investor Streams in their current program.

The ACT also insist that, to qualify for their nomination, you must show that your complying investments will make a contribution to the ACT economy.

The Northern Territory is currently working on their new criteria. In the interim applications are considered on a case-by-case basis.

Every state, or territory has their own unique criteria. The common theme is that each state wants every applicant, in varying degrees to demonstrate a genuine commitment to the nominating state.

With all of the complexities introduced by the BIIP review, combined with each states own criteria, our message that all investor visa applicants should seek independent financial advice is more important than ever.

Please ensure that your clients receive investment advice from an ASIC licenced Financial Adviser who specialises and is experienced in the Investment Visa (IV & SIV) space. This advice should be sought before you even lodge an EOI, to ensure that the applicants investment goals, objectives, and options are aligned with their intended state of nomination.

Our compliant model portfolios are acceptable to most, but not all Australian states and territories. For many of our clients we build bespoke portfolios to suit their own risk profiles and to target a state or territories particular criteria. It makes sense to get your investment advice before applying as the states/ territories do not refund their application fees and usually do not entertain the transfer of a nomination to another state.

Working together we can help to ensure that your clients get the best possible investor visa (IV & SIV) investment advice and target the state or territory that suits both their lifestyle and investment consideration.

It makes good sense and is best practice to refer your investor visa clients to ASIC registered financial advisers like the Ord Minnett Investor Visa Service.

Good advice leads to good outcomes.

We regularly share case studies with new applicants to give them a feel of what a compliant portfolio looks like and as testament of what can be achieved if you follow a disciplined investment process even through times of volatility.

SIV Case study 1

SIV (before CIF change of 1 July 2015) client from China who invested A$5M into a Conservative Portfolio, comprised primarily of Fixed Interest. The $5M invested on 30 July 2015 grew to $6,276,170, when their Permanent Residency Visa 888 was approved in September 2021. This equates to a cumulative return of over 25.52% over the 5 years or an average return of 5.10% per annum after fees. This conservative investor is very happy with this great result of returns that were double that of the Morningstar Conservative Index return for the same period.


SIV Case Study 2 

SIV client ( CIF as per 1 July 2015 rules) invested on 14 November 2016 into a Balanced style portfolio that including ‘Blue Chip’ Australian shares and Commercial property. When their Permanent Residency was approved in September 2021 their $5M investment had grown to $7,425,18. This result is after fees and allowing for the $500,000 withdrawal made January 2021. This $500,000 has been used to establish a Blue-Chip Portfolio of Australian shares.


This equates to a cumulative return of over 48.50% over the 5 years or an average return of almost 10% per annum per annum after fees. The client is understandably ecstatic with their returns over a period which included the large market correction, and volatility caused by the COVID19 global pandemic. By comparison Australia’s ASX200 Index returned approximately 33.71% over the same 5-year period or an annual average 6.74%.

Client is so pleased with returns that they are continuing with these investments after their Permanent Residency Visa has been approved.

SIV Case Study 3.

SIV client invested in December 2018 into a Balanced style portfolio that including ‘Blue Chip’ Australian shares and Commercial property funds. Three years into their SIV (188C) Provisional Visa their $5M investment had grown to $6,980,915.


This equates to a cumulative return of over 39.62% over the 3 years or an average return of over 13% per annum per annum after fees. Another client who is pleased with their returns over a period which included the large market correction, and volatility caused by the COVID19 global pandemic.

Client is so pleased with our service and performance that they have referred several of their friends to the Ord Minnett Investor Visa Service.

“Ord Minnett is where Investor Visa applicants belong.
When you get the right advice, it makes all the difference."

Choosing to apply for an SIV or an IV, deciding which state to be nominated by, and assessing the various investment options is an important decision. Please contact us at [email protected] and help your clients to make an informed decision.


For more details we invite you to check out our website at https://ords.com.au/significant-investor-visa-siv-ord-minnett-ords/

During these times of COVID lockdowns and travel restrictions, we continue to enjoy a lot of success by having an email introduction made as early as possible. The new normal continues to be, initial consultations and follow up meetings conducted efficiently via Zoom or WhatsApp conferencing.

Please note that there will be someone available over the holiday season so please do not hesitate to contact us if you have a case you wish to discuss, or a client you would like to introduce.

Once again, thank you for all of your support over 2021. We look forward to working with you to help your clients obtain their Australian Visa and to having a great Australian Investment experience.

From all at Ords, we wish you a very joyful Festive Season. We hope that the New Year brings you and your families much happiness and prosperity, and that in time the world will be a safer place again. Take care of yourselves and see you on Zoom, or better still in person very soon!

Brett Waller Ord Minnett Director SIV Investment Service

Brett Waller

MANAGING DIRECTOR - SIV INVESTMENT SERVICE

After a career spanning over 25 years of Private Banking and Trade Finance, Brett moved to Asia joining ipac Singapre as a Senior Vice President in 2005. Joined Ord Minnett in 2012, and established the SIV Ord Minnett Investment Service.


[email protected]

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Tags

Investor Visa, SIV


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