The BIIP offers permanent residency pathways for business owners, investors and entrepreneurs who wish to relocate or expand their business and investment activities to Australia. The upcoming changes will provide for faster pathways to permanent residency for investors, as well as the potential for increased returns on investment.

What changes were announced?

The Morrison Government is reforming the BIIP with a view to maximise the economic contribution of the program to Australia's COVID-19 economic recovery.

Minister for Immigration, Citizenship, Migrant Services and Multicultural Affairs Alex Hawke announced the following key changes to the BIIP yesterday:

• The subclass 188 (Investor Stream) visa (Investor Visa) investment threshold will increase from A$1.5million to A$2.5million.
• The subclass 188 (Significant Investor Stream) visa (Significant Investor Visa) investment threshold will remain unchanged at A$5million.
• A new Complying Investment Framework (CIF) will now apply to both the Investor Visa and Significant Investor Visa.

• The new CIF breakdown is:

• 20% venture capital and Private Growth Equity funds (VCPE), up from a previous 10%;
• 30% funds investing in emerging companies; and
• 50% in balancing investments, down from a previous 60%.

• Funds will be required to produce independent audit reports annually to show their compliance with the new CIF.

The purpose of these changes is to increase the amount of foreign investment through these visa programs and to shift the focus of investment towards venture capital and private growth equity. Investor Visa applicants will now have the potential to reap better returns on their investments from the previous conservative returns offered on state/territory government bonds.

Other BIIP changes were previously announced by former Acting Minister for Immigration, Citizenship, Migrant Services and Multicultural Affairs Alan Tudge on 17 December 2020. These changes are:

• The permanent subclass 132 visa and provisional subclass 188 (Premium Investor) visa will be removed from Australia's visa program.
• The visa period for all visas in the BIIP will be increased from 4 to 5 years, while the wait time to apply for permanent residency will reduce from 4 to 3 years, once requirements are met.
• The threshold requirements for the subclass 188 (Business Innovation Stream) visa (Business Innovation Visa) will be increased, requiring applicants to hold assets of A$1.25million and have an annual turnover of A$750,000 in their main business(es).
• The A$200,000 funding threshold for the subclass 188 (Entrepreneur Stream) visa (Entrepreneur Visa) will be removed, meaning that applicants can apply for the visa without the need to first source specific funding for their entrepreneur activity.

When will the changes apply?

The changes to the BIIP will come into effect from 1 July 2021, and will affect visa applications lodged after their implementation.