The latest Significant Investor Visa (SIV) statistics show 41 approvals per month, equating to nearly 500 per year. On a positive trend, there were 239 new SIV applications lodged in the 7 months to 31 January 2017.  This equates to 34 a month, or 409 per year if annualized.

As mentioned in our previous newsletters, we believe the Department of Immigration (DIBP) has limited staff resources for SIV processing, and can only process 40-50 approvals per month, with a back-long of 2+ years.

However, 14 of the 41 approvals are under the new SIV investment regime at present.  (the new regime requires $5m investment into SIV-compliant VC, small cap and balancing funds)

In the early years of the SIV program, approval rates were reportedly around 70-80% of SIV applications, due to incomplete paperwork and unfamiliarity about DIBP due-diligence requirements from immigration agents.   However, we expect a higher approval rate now compared to previous year’s due to more experience by the SIV industry.  (UK’s investor visa program has an approval rate of 92%)

Based on these numbers, Australia is on track to eventually take around 400 high-net-worth SIV migrants per year, generating:

  • $200m for VC funds,
  • $600m for SmallCap funds and
  • $1200m for balancing funds each year, (once the migrants are approved), as part of their obligations to invest $5m each into Australia.

As a comparison, there is just $450m in VC funds awaiting deployment (AFR 3 March 2017), therefore SIV-related VC funds are almost half of the VC funds available.

In addition, around 16,000 business and skilled migrants arrive from China each year, equating to 8% of Australia’s 190,000 annual immigration intake.  Unlike migrants of previous decades, many of these new migrants are wealthy, and influence tourism, education, and investment-related decisions amongst their personal networks in China.

This influence on ‘Australian opportunities with a China-growth angle’ is led to BasisPoint establishing its Aus-China portal – for more information, visit www.basispoint.com.au

The table below shows statistics from 1 July 2016 to 31 January 2017.

Significant Investor Visa Statistics Graph 1Source: Department of Immigration and Border Protection

 

As of 31 January 2017:

  • 1721 SIV visas have been granted from the commencement of the programme on 24 November 2012.
      • 1600 (subject to regulations prior to 1 July 2015)
      • 121 (subject to regulations post 1 July 2015)
  • AUD 8.605  billion has been invested in Complying Investments.

The table below shows government sponsor distribution of the SIV.

Significant Investor Visa Statistics Government Sponsor Distribution ImageSource: Department of Immigration and Border Protection

The table below shows the distribution of primary visa applications and visa grants for the top five source countries from the commencement of the programme – 24 November 2012 – 31 January 2017  for the SIV.

Significant Investor Visa Statistics Top 5 source countries imageSource: Department of Immigration and Border Protection

For insights into SIV and Chinese HNW migrant opinions on investments and integration in Australia, visit  http://basispoint.com.au/events/significant-investor-visa-chinese-australia-lunch-seminar/  for information about our latest SIV lunch-seminar on 3 May, 2017.