BusinessDay: Visa 888 delays stall foreign investment In Australia

http://www.businessday.com.au/business/v...2oqpf.html
Visa delays stall foreign investment
Date
June 24, 2013
Lena Bell
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EXCLUSIVE

The significant investor visa gives residence to cashed-up applicants with $5 million or more to invest in Australia.
More than $1.7 billion in foreign investment, including funding for crucial government infrastructure projects, remains in limbo due to a slow visa approval process by federal authorities.
Figures obtained by Fairfax Media reveal just one "significant investor" visa has been approved, and the delays have cost the Victorian and NSW governments hundreds of millions in potential funds.
The significant investor visa gives residence to cashed-up applicants with $5 million or more to invest in Australia - without the usual age, language or residency requirements - and matches similar schemes in Britain, the United States, Singapore, Canada and New Zealand. After four years that residency becomes permanent.
More than 350 investors, each pledging at least $5 million, have been nominated by the Victorian, NSW, Queensland and Western Australian governments since the program began in November.
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An Immigration Department spokeswoman said processing times for applications under the significant investor visa program would be up to nine months as "the department develops organisational expertise for this new visa".
A range of background checks including potential issues about health, character and national security, also affect processing times, the spokeswoman said.
The majority of significant investor visa applicants - both the expressions of interest and the invitations sent out - are from China.
The Victorian government nominated the first successful significant investor granted a visa under the scheme last month.
Applicants must invest at least $5 million over four years.
"They need to be able to show that their investment will provide a boost to GDP,'' said the spokeswoman for the Immigration Department.
Investments can include government bonds, an ASIC-regulated managed fund or a direct investment into Australian companies. So-called sponsorship of the visa applicant becomes the responsibility of the state or territory governments.
NSW has nominated 163 significant investor visas so far and if all are approved, 30 per cent of the final contribution or $244 million will go towards the state's Waratah bonds. These funds are then used to help fund critical infrastructure projects, including roads and new rail links.
Victoria has nominated 141 significant investors, Queensland 34 and WA 17.
Victorian Minister for Employment Louise Asher told Fairfax Media that the Victorian government also provided investment facilitation assistance to all significant investors interested in additional business activity.
"All applicants who meet the minimum Commonwealth government requirements for this visa and who can show that they are interested in living, investing or doing business in Victoria will be considered for nomination by the Victorian government,'' Ms Asher said.

Bopian even for a temp visa these ang mo take their own sweet time.

That's why a lot of aussie projects take so long to complete here.

Tax is also a lot..

Golden ticket visas surge

PUBLISHED: 27 JUN 2014 02:25:01 | UPDATED: 27 JUN 2014 10:03:40

LARRY SCHLESINGER
The equivalent of $405 million of investment applications for visas issued to rich foreigners were approved in April and May.

Eighty-one so-called “golden ticket” visas were issued, the most since the program began in late 2012. Eighty-five per cent were issued to Chinese nationals. In total, the Department of Immigration and Border Protection has issued 255 visas worth $1.28 billion since the program was introduced.

A further 928 visas have been lodged with a combined investment value of $4.6 billion.

The program is open to foreigners who invest a minimum of $5 million in government bonds, Australian proprietary companies or ASIC-regulated managed funds.

The visa allows the recipient and their family to migrate to Australia and apply for permanent residency after four years.

Visa applicants do not need to satisfy standard English language proficiency requirements or age limits required for other migrant visas.

Just under 85 per cent of the visas have been issued to people investing in schemes in NSW and Victoria and a smaller number in Queensland, ­Western Australia and South Australia.

The NSW government’s Waratah Bond program is among those to have seen an uptick in investment. The program is available to foreigners who obtain NSW government sponsorship.

The minimum investment is $1.5 million in a NSW Waratah fixed rate bond over four years.

Jason Huljich, chief executive of ASX-listed Centuria’s unlisted property funds business, said its property funds are compliant with the visas but “it’s my understanding that there is very little SIV investment coming into unlisted property at all”.

“The vast majority of money is going into bonds. Investors want to put their money into something they believe will 100 per cent preserve their capital base. They don’t care that much about low returns.”

Michael Burstin of Oliver Hume Funds Management, which offers SIV-compliant investments in residential development syndicates, said there had been a “significant increase in interest in the visa program following the ­cancellation in February of Canada’s immigrant investor” program.

The long-running Canadian scheme closed with a waiting list of 59,000 ­people, most from China.

“We now have over $30 million ­committed to our fund and expect a ­further $20 million once current visa applications are approved later this year,” he said.

He said most SIV funds were investing in government bonds or cash and bond funds.

“Bonds are the easy way out for investors who are either unwilling or unable to identify worthwhile private funds to invest in,” he said.

“It takes a lot of time to develop trust with potential investors – enough to invest in a private company fund.”

Cash for visas nabs $4.7b
Agnes King
183 words
13 Aug 2014
The Australian Financial Review
AFNR
English
Copyright 2014. Fairfax Media Management Pty Limited.
The federal government has attracted $1.7 billion and granted 343 residency visas to foreigners, 85 per cent to Chinese, under the significant investor visa program.

The latest figures show that at July 31, another 602 people applied for residency visas and promised to invest $3.05 billion, under the program that gives residence to applicants investing $5 million in approved assets.

Since the scheme started in 2012, the Abbott government has increased the approval rate, granting 31 investor visas in June and 57 in July.

Some advisers complain approvals aren't going fast enough. "The speed has picked up but it needs to go faster," said BasisPoint Consulting managing director David Ko Chin.

The government claims the challenge is one of integrity over speed.Assistant Immigration Minister Michaelia Cash's spokesman said while the government has gone to great lengths to "facilitate rather than frustrate such investment programs", it must be accompanied by "strict checks and balances".Victoria beating NSW

Victoria has attract 49 per cent of investment and NSW 35 per cent.


Fairfax Media Management Pty Limited

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Foreign investor visa program to get restrictions: report
STAFF REPORTER OCTOBER 13, 2014 7:00AM

Foreign investors looking to secure Australian visas will have to target their money at areas of priority to the Australian economy, The Australian Financial Review reports.

Under the previous Labor government, foreigners with $5 million to invest over four years could secure a visa. The ‘Significant Investor’ visa program was designed to increase foreign investment.

The AFR has learned the investor scheme will be altered to push money towards certain areas of the economy.

The move comes ahead of the government’s National Industry Investment and Competitiveness Agenda, which is to be released on Tuesday. The newspaper says the areas to be targeted include agribusiness, energy, mining technology, medical technology and advanced manufacturing.

Meanwhile, Australia’s appeal as a foreign investment destination has taken a hit in recent years from a variety of factors, according to a paper from the vice-president of the peak Australia-Japan business body.

The Australian says the report claims the divisive political climate, minor party control of the Senate, NSW corruption scandals and the rise of community campaigns could combine with the high currency, high wages and red and green tape to turn off Japanese investors.

The report comes from the Australia Japan Business Co-operation Committee.

Govt to expand visa scheme, change 457 conditions
FERGUS RYAN OCTOBER 14, 2014 4:45PM

Australia will offer a new Premium Investor Visa next year, granting residency after one year for those who make $15 million in eligible investments.

The program extends the current significant investor visa (SIV), established under the previous Labor government which takes four years and an investment of $5 million.

The changes are aimed to “encourage more high net worth individuals to make Australia home” the Prime Minister's office said in a statement.

Foreign investors looking to secure Australian visas will have to target their money at areas of priority to the Australian economy with investment eligibility criteria determined by Austrade in a consultation with key economic and industry portfolios.

Changes to the existing existing SIV program will include "streamlining and speeding up visa processing”, increased promotion of the programme globally and strengthened “integrity measures”.

Austrade will also become a nominating entity for the SIV in addition to the current State and Territory governments’ role as nominators.

The changes to the SIV will take effect during 2014-15, with the Premium Investor Visa to be introduced from July 1, 2015.

The government also said it would be making it easier to hire workers on 457 visas.

Prime Minister Abbott said the proposed changes won't undermine people's pay and conditions.

The application process for the temporary visa program would be streamlined and English language testing relaxed, Mr Abbott said.

"We want it to be less burdensome for the businesses that are doing it," he told reporters in Canberra.

"We want these to be a way of helping business to grow."

Business has complained the 457 visa scheme is too rigid, while unions fear the system could be rorted by businesses seeking cheap overseas labour.

Mr Abbott said safeguards would be kept in place to prevent exploitation and protect local workers, with a continued requirement that foreign workers be paid the same as Australians.

The reforms were not about undermining pay and conditions, Mr Abbott said.

But a business forced to close due to labour shortage employs no one, he said.

"There will be no dilution of the requirement that people be paid proper market wages," Mr Abbott said. "(The 457 visas) are not a way of substituting overseas labour for domestic labour."

Fears $15m visa will inflate house prices

Agnes King, Su-Lin Tan and Lisa Murray
525 words
16 Oct 2014
The Australian Financial Review
AFNR
English
Copyright 2014. Fairfax Media Management Pty Limited.

Advisers have cheered the creation of a $15 million fast track to permanent residency for wealthy foreigners, in a move by the Abbott government to harness Asia's wealth to boost economic growth and job creation.

They said it puts Australia on the front foot in the competition for rich investors looking to safeguard their wealth in stable offshore markets.

"Australia competes with many countries for high net wealth migrants, making it an attractive prospect is in the national interest," migration lawyer Alan Rigas said.

The premium investor visa program, announced on Tuesday as part of the government's competitiveness agenda, gives permanent residency to applicants investing $15 million in certain assets after 12 months.

"The changes can only lead to more investment," Prosperity Fountainguard Advisers' Luke Malone said, who led a nine city investor roadshow throughout China in June.

Fountainguard has a second investor delegation currently en route to Shanghai, where it will present to more than 20 individuals looking to invest up to $20 million each. He said the visa, available from July 2015, will be "highly attractive" to this group.

But business migration agent John Findley feared much of this investment will be attracted to property assets. It will drive up prices, which many, including billionaire Lang Walker, said are already inflated by a flood of Chinese developers.

"The likelihood of the $15 million going into property is very real and very high," said Mr Findley.Investment choices to broad

He said investment choices for compliant funds are too wide and the government should direct it towards infrastructure, or new investment in small and medium businesses.

NSW recently scrapped the requirement for significant investor visa applicants to park $1.5 million into low yield Waratah Bonds.

As part of the changes announced on Tuesday, Austrade will be handed responsibility for drawing up the list of complying investments.

While details are yet to be released, the government has indicated compliant investments will align to five sectors earmarked for growth: food, agri-business, mining technology and services, gas and energy resources, medical technology and pharmaceuticals, and advanced manufacturing.

Latest figures show that to July 1 2014, the federal government has granted 286 significant investor visas, out of a total of 1027 applications, bringing $1.4 billion worth of foreign investment. Most came from China.

The significant investor visa program, which began in 2012, grants permanent residency to foreigners who invest a minimum of $5 million in prescribed assets after four years. A review by the department of immigration found other countries with similar investor visa programs "have less onerous application criteria and processing requirements".

The government wants to "target premium investors more effectively", and streamline the administration of the program. It also wants to "diversify the sources of investors" under the program, while maintaining safeguards to ensure it is not abused.Safe haven risk

Basis Point managing director David Chin said investment from China has only just begun. "Research indicates that 5 per cent of the wealth of Chinese high net worth individuals was allocated outside of China.


Fairfax Media Management Pty Limited

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New visa won’t hit home prices, says Andrew Robb
THE AUSTRALIAN OCTOBER 18, 2014 12:00AM

Sid Maher

National Affairs Editor
Canberra
TRADE Minister Andrew Robb has hit back at fears the government’s new $15 million fast-track visa for wealthy migrants will drive up real estate prices.

Mr Robb said direct investment in residential real estate would not be a complying investment under the government’s proposed new premium investor visa, which was announced earlier this week.

The new visa will offer a fast track for international investors to permanent residency compared with the existing significant investor visa , but the threshold is $15m compared with $5m.

Mr Robb said direct residential real estate investment was not a complying investment under the current system, nor would it be a complying investment under the new visa.

“Our aim, as part of our broader competitiveness agenda, is to attract more investment into Australia that makes a material difference to supporting sustainable growth, productivity and job creation,” he said.

Mr Robb said eligibility criteria for both visas would be aligned with the government’s investment priorities.

These investment criteria will be determined by Mr Robb and Austrade in consultation with other key economic and industry portfolios in the government as well as the states and territories.

Mr Robb was speaking after some business migration agents warned that the new visa would drive up property prices.

There have already been complaints that property prices are already inflated by Chinese investment.

Robb flags revamp of investor visa schemes
PETER CAI THE AUSTRALIAN OCTOBER 23, 2014 12:00AM

THE federal government has signalled a major overhaul to the significant investor visa program as it looks to divert the billions of dollars raised from the scheme away from low-risk investments such as government bonds into areas such as venture capital and small-cap companies.

The Abbott government also plans to tighten scrutiny surrounding the visa program, as well as the newly announced $15 million premium investor visa scheme, amid concerns some ­people with criminal links and corrupt officials could be exploiting the program to fasttrack their entry into Australia.

Since the significant investor visa program was launched two years ago, close to $2 billion has poured into mostly ultra-safe government bonds, an ASIC-regulated managed fund or shares in blue-chip companies.

But Trade and Investment Minister Andrew Robb believes the money going into low-risk bonds makes no real contribution to Australia’s economic growth.

“If (the funds) are going to government bonds, which could be sold anytime and anywhere at a good price, Australia is getting nothing out of it,” Mr Robb told The Australian. “They just park money there for four years and got citizenship. It does not make a lot of sense to me from a public policy point view.”

Instead, the government wants to channel these new funds from wealthy investors — mostly Chinese nationals — into areas where companies are starved of capital such as start-ups, small-cap companies and early-stage exploration companies.

“My view is that we should channel investment into areas of relatively higher risk,” he said.

“In those areas, the few hundred million additional dollars ­invested into venture capital space, for instance, would be transformational. It could make a real difference.”

The new premium investor visa program, which offers fast-tracked Australian citizenship in 12 months, requires investors to put at least $15m into the economy. So-called sponsorship of the visa applicant becomes the responsibility of the state or territory governments.

Mr Robb said Australian citizenship was highly prized among international investors and the additional risks that they must carry warranted the benefits of becoming an Australian citizen.

“I think what is being offered is a very valuable thing in terms of fast-tracked citizenship,” he said.

“I do feel this warrants investment that makes a material difference to Australia, not just sitting in low-risk accounts for four years, not making any contribution to the country.”

It is the government’s intention to channel investor money into these new areas through existing vehicles that have been tried and tested over time, such as the Early Stage Venture Capital Limited Partnership, which is registered with the Department of Industry as well as the ATO.

“We feel this SIV and PIV could make a very material contribution in terms of lowering costs and getting ventures off the ground,” he said.

Of the 436 people awarded significant investor visas as of last month, 88 per cent were Chinese.

Australia’s investor visa program has been under the spotlight due to its alleged connection to money-laundering as well as potential exploitation by Chinese ­officials amid a crackdown by Beijing on corruption.

Australian Federal Police has recently announced an unprecedented co-operation with the Chinese law enforcement authorities in tracking down economic fugitives as well as seizing ill-­gotten goods and property in ­Australia. Mr Robb defended the overall integrity of the visa programs, which are administered by the Department of Immigration, saying there had not been a problem with SIV to his knowledge.

“There is co-operation between our two police authorities to try to flush out some of these corrupt officials,” he said.

“We are re-assessing integrity measures.”

The minister also said that the Australian immigration authority would refer cases to Chinese police if any improprieties were discovered during the mandatory security and character screening process.

“If there is any suggestion that a person has accumulated wealth through illegitimate means, all materials are referred to local authorities in the source countries and in the case of China, to the Chinese police,” he said.

The Australian this week reported that one of China’s most wanted officials, Gao Yan, the former head of the nation’s State Grid Corporation and a former senior party official, is thought to be hiding in Australia.

Business Spectator

(22-10-2014, 10:27 PM)greengiraffe Wrote: But Trade and Investment Minister Andrew Robb believes the money going into low-risk bonds makes no real contribution to Australia’s economic growth.

“If (the funds) are going to government bonds, which could be sold anytime and anywhere at a good price, Australia is getting nothing out of it,” Mr Robb told The Australian. “They just park money there for four years and got citizenship. It does not make a lot of sense to me from a public policy point view.”

Instead, the government wants to channel these new funds from wealthy investors — mostly Chinese nationals — into areas where companies are starved of capital such as start-ups, small-cap companies and early-stage exploration companies.

It's actually quite amazing that it took them so long to realise this

Bottomline is that the inflow should be sticky and create jobs ie FDI. Probably making it compulsory to be injected into a company structure with PnL reporting yearly hiring at least 3 australians kind of thing would be what policy makers should be looking at.