How Does Australia’s SIV And IV Work?

For high-net-worth individuals who wish to migrate to Australia, the Significant Investor Visa (SIV) and the Investor Visa (IV) provides a pathway to secure permanent residency by investing a certain amount of money into complying investments framework.

 

The Australian government introduced the SIV ‒ a stream within the country’s permanent Business Innovation and Investment (Subclass 888) visa ‒ in 2012 as a way of attracting innovation and investment into the country. 

 

The IV, which falls under Australia’s provisional Business Innovation and Investment (Subclass 188) visa, underwent an investment framework adjustment in 2021 to require that investments meet the same compliance regulations as the SIV.

Candidates

According to the Australian Home Affairs, those who wish to take advantage of either the SIV or the IV will first need to submit an expression of interest, which can be done through SkillSelect. They also need to be nominated before being invited to apply. This nomination can be made by  a territory government or a state.

 

If all the requirements are met and the complying investments are made as prescribed, then SIV holders can apply for permanent residency after a minimum of three years. SIV holders have up to a maximum of five years to meet all of the requirements.

Complying Investment Framework Summary

If all the requirements are met and the complying investments are made as prescribed, then SIV holders can apply for permanent residency after a minimum of three years. SIV holders have up to a maximum of five years to meet all of the requirements.

 

For the IV, a total investment portfolio of $2.5-million needs to be achieved in complying investments. These are comprised of $500 000 invested into Australian private equity or venture capital, $750 000 invested into emerging Australian companies and a range of other investments into managed funds, Australian real estate investment trusts (A-REITs), infrastructure trusts, corporates bonds, real estate, annuities and Australian listed companies.

 

The same applies to the SIV, except that the investment into Australian private equity or venture capital must come to at least $1-million, the investment into emerging Australian companies must come to at least $1.5-million, while the balancing investments must equal a minimum of $2.5-million. This amounts to a total investment portfolio of $5-million.

 

These SIV amounts only apply if the application was made after 1 July 2021. If the SIV application was made prior to that date, then the investment in private equity or venture capital must only be $500 000, while balancing investments must equal $3-million. The total investment amount, however, remains the same.

 

Rod Mackay, CEO of Boutique Investment Fund, Hamilton Knight, can help you get your SIV or IV secured today. Contact us to find out how!

Hamilton Knight Invests In Solar Power Generation

Hamilton Knight, a boutique asset management firm, is creating a name for itself as a major player in the renewable energy space.

 

As a forward-thinking boutique asset manager and investment fund with a global reach, Hamilton Knight has demonstrated its commitment to helping Australia further reduce its carbon emissions by investing in significantly-scaled solar energy projects through its Alternate Energy Division.

 

In line with this, the firm has acquired a 215 ha parcel of land in Chinchilla, Queensland, which has been approved for the development of a 125 MW solar power generation facility. Moreover, Hamilton Knight has secured additional land in Central Highlands, also in Queensland, where it plans to build a further 25 MW of solar power generation capacity.

 

Queensland, which is known as the “Sunshine State”, receives above-average sunlight all year round. In summer, the average daily sunlight hours extend to nearly 14 hours; in winter, this reduces to just under 11 hours, making it an ideal location for solar power installations.

The State Of The Market

According to the Clean Energy Council, Australia’s energy mix was reportedly made up of 32.5% renewables in 2021, including solar, wind and hydropower, among others. However, under Conservative Prime Minister Scott Morrison, investor confidence in the sector had slowly shrunk due to his championing of coal-fired power generation. This was evident as we witnessed a 17% reduction in major financial commitments made by investors in the country for new big-scale renewables projects.

 

However, despite the overall renewables drop off, investment in specifically solar power generation capacity continued to grow 38.7% up from 2020.

 

To further bolster the sector, the recent election of Labor Party Prime Minister Anthony Albanese has sparked an investment revival in the renewables sector following his May 21 speech where he promised Australians that the country would become a renewable energy superpower.

 

The Australian government’s reinvigorated support for renewable energy projects, which will almost certainly be accompanied by a number of changes to the country’s climate change laws and policies, signals a new age that will benefit those who participate in the space.

Fuelling The Future

The hope is that the new administration will make it easier for independent power producers to access the grid, as well as reap the benefits of favourable taxation policies geared at rewarding those who are joining the fight against climate change.

 

Hamilton Knight CEO Rod Mackay says that with demand for alternative clean energy on the rise, the price for energy at record highs and the cost of renewables continuing to fall, it is an excellent time to participate in the sector.

To find out more about Hamilton Knight’s world-class investment opportunities, contact Rod Mackay today!