New visa to boost Australian economyDOWNLOAD
23 November 2012: Professional services firm Deloitte says the introduction of the Significant Investment Visa when it launches tomorrow will mark the real beginning of Australia’s ‘Asian Century’.
Mark Wright, Deloitte’s Immigration Leader, says the new visa will allow ultra-high-net-worth foreign nationals to apply for permanent residence if they are able to invest at least A$5million (US$5.2million) in complying investments for a minimum of four years.
“If there is one issue on which governments worldwide are focused on at the moment, it is how to create economic growth. Now, for the first time in over a decade, Australia is a competitive alternative to other foreign markets battling to attract inbound investment to their economies,” Mr Wright said.
Despite the evident benefits the visa would deliver to Australia, Mr Wright acknowledged the potential for some sections of the community to view it with cynicism.
“For some, this will be perceived simply as a vehicle to allow wealthy foreigners to buy residences here. However, that’s a shallow view of a policy that has the potential to deliver billions of dollars of investment to our economy that will have an intergenerational impact on our prosperity.”
“A recent Wall Street Journal analysis suggested that approximately US$225 billion left China in the 12 months to September 2012. According to a Boston Consulting Group survey, China has 1.4 million millionaires – only the United States of America and Japan have more.”
“Here we have an opportunity to attract not only those huge foreign investment dollars, but also the entrepreneurial culture that has made Asia such an attractive and vibrant investment destination in recent decades,” Mr Wright said.
While the new visa is likely to be extremely popular across Asia, and China in particular, Mr Wright warned there were complex requirements around the required investment vehicles that could be used, and potential applicants needed to be aware of these.
“One of the approved funds is the recently launched Australian Capital Investment Fund, to which Deloitte was appointed as taxation and immigration adviser and JBWere as asset adviser. Indicating the high interest in the new visa, the fund’s private wealth manager says it has already attracted AU$500 million of capital from 100 clients,” Mr Wright said.
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