On 13 August 2013, the government revised the minister’s instrument specifying ‘Eligible Managed Fund Investments’ for the significant investor visa regime to include, amongst other things, derivatives (within limits).
In summary, the revised instrument (IMMI 13/092)1 allows additional classes of investments by managed funds, namely:
- bonds, equity, hybrids or other corporate debt in companies and trusts expected to be listed within 12 months on an Australian Stock Exchange
- annuities issued by an Australian registered life company in accordance with section 9 or 12A of the Life Insurance Act 1995
- derivatives used for portfolio management and non-speculative purposes which constitute no more than 20% of the total value of the managed fund
- loans secured by mortgages over other eligible managed fund investments, and
- fund of funds investing into the above new classes of investments.
The new instrument also clarifies that cash held by ADIs includes negotiable certificates of deposit, bank bills and other cash like instruments.
When does this take effect?
The new instrument takes effect from 23 November 2013. The form of Form 1413 will need to be updated to reflect the new instrument and a new form is expected to be released in due course.2