The rules have been released that govern the new Significant Investor Visa (SIV) regime and introduce the Premium Investor Visa (PIV) regime. The new rules came into effect on 1 July 2015.   

The amendments to the Migration Regulations and the accompanying instrument has enabled many of the uncertain aspects of the revised regime for SIV investors and the new PIV regime as announced in May 2015 to be clarified.

Some of the more important issues that appear to have been clarified are:   

For SIVs

  • Managed investment funds that are listed investment companies must hold A$100million in funds under management in Australia (Australian FUM) or have appointed an investment manager who meets this Australian FUM requirement.
  • A venture capital investment must be made directly or through an Australian venture capital fund of funds.
  • Any Fund of Fund issuer or IDPS operator that provides complying investment options for the mandatory emerging company component and/or balancing investments must have A$100million Australian FUM.

For PIVs

  • Any investment through a managed investment fund has similar restrictions to the requirements for a direct investment (although a managed investment fund may additionally have a cash component up to 20% of the value of the fund's net assets).
  • There is no Australian FUM requirement for a managed investment fund investment.

View a summary of the new SIV and PIV regimes as at 1 July 2015.   

Breaches 

A period of 10 business days has been allowed for a breach of a number of the specific investment restrictions to be remedied before the investment becomes a non-complying investment. This applies to, for example, the requirement for cash to be no more than 20% of the value of a managed investment fund's net assets and a the specific requirements applying to an emerging companies investment, but does not apply to investment in categories of investment that are not permitted.   

Restriction on investment in Australian residential property 

The restriction on direct investment in Australian residential property (which has been clarified to include land zoned for residential use) includes a direct investment through a managed investment fund. Up to 10% of the value of a fund's net assets may be invested in Australian residential real property held through permitted underlying investment vehicles provided the dominant purpose of the residential real property investment is not for deriving financial benefits or assisting the investor and family members to reside in or gain ownership of a residential real property investment.

Further reading is available at the following links:

Migration Amendment (Investor Visas) Regulation 2015

Migration (IMMI 15/100: Complying Investments) Instrument 2015