Further changes to the requirements for Subclass 188 - Business Innovation and Investment (Provisional) visas were announced today by the Minister for Immigration, Citizenship, Migrant Services and Multicultural Aff​airs after other amendments were released at the end of last year. This comes after a review of the Business Innovation and Investment Program (BIIP) and particularly how Australia can benefit more. This time, investor visas, namely the Investor stream and Significant Investor stream were on the receiving end.

The Investor stream under the 188 visa is the little brother to the Significant Investor stream. While the required investment for the Investor stream was $1.5 million, 30 per cent of the $5 million needed under the Significant Investor stream, other hurdles including scoring at least 65 points in the business skills points test, age, and minimum management experience meant some may prefer the Significant Investor stream provided they have the funds. Additionally, the residency requirements to be granted the Subclass 888 - Business Innovation and Investment (Permanent) visas is also a consideration as there are very relaxed requirements for jet-setting Significant Investor visa holders, international border restrictions notwithstanding.

From 1 July 2021 the minimum funds to invest under the Investor stream will increase by a significant two-thirds to $2.5 million, and will be half that required for the Significant Investor stream. Surprisingly, the $5 million minimum for the Significant Investor stream will remain unchanged and will be the only “original” stream when the 188 visa commenced on 1 July 2012 to not have any monetary threshold increased in its nine-year history.

What will change for both streams is the Complying Investment Framework (CIF). For the Investor stream, to be nominated by a state or territory for a 188 visa would usually require an investment in specific state or territory financial instruments, such as bonds. This will no longer be required from 1 July 2021 with the CIF applying to both the Investor and Significant Investor streams.

Furthermore, the allowed mix of the CIF will change with the riskiest venture capital and private growth equity component increasing from 10 to 20 per cent. As the emerging companies portion will remain at 30 per cent, the 10 per cent will come from the safer balancing investment component. Any investment funds used for either stream will need to provide annual independent audit reports to show compliance with the CIF.

With the additional hoops to stay for the Investor stream, it just might be that these reforms are designed to incentivise more into choosing big brother if they have the money.