Department of Home Affairs requirements

The biggest changes under the new policy

NSW is the state new migrants most want to move to — with its strong economy and world-famous reputation, NSW has never been short of investor migration applicants. As a result, the bar for Sydney has risen right along with demand, relative to other states and cities.

On 1 September 2021, the NSW government officially announced it would open EOI applications for investor migration on 20 September. The new investor migration policy has raised the bar quite a bit compared with before. It’s clear the new policy this financial year drew on Victoria’s policy from last year, introducing stricter requirements around applicants’ education, age and business background in specific industry sectors.

NSW is currently the only state whose application conditions are split between metropolitan Sydney and regional NSW

The specific conditions under NSW’s new 188A policy 

1. Personal background

Age: NSW has lowered the age requirement for applicants by 5 years, from under 55 to under 50

Education: a bachelor’s degree recognised in Australia; if this isn’t met, you’ll need at least 3 years, within the past 10 years, of NSW target sector (discussed below) business experience; or alternatively, 5 years or more of business experience outside the NSW target sectors within the past 10 years

2. Personal and company net assets

Applying for the Sydney region requires AUD 1.75 million in net assets (AUD 500,000 higher than the Department of Home Affairs’ requirement)

Applying for regional NSW requires AUD 1.25 million in net assets (in line with the Department of Home Affairs’ requirement)

3. Company turnover

Applying for the Sydney region requires annual company turnover, in 2 of the last 4 years, of AUD 1.25 million (AUD 500,000 higher than the Department of Home Affairs’ requirement)

Applying for regional NSW requires annual company turnover, in 2 of the last 4 years, of AUD 750,000 (in line with the Department of Home Affairs’ requirement)

4. EOI score

– EOI score of no less than 65 points; applicants meeting the following point criteria will be given priority consideration

– 15 bonus points for business experience (at least 7 years of business background within the last 8 years)

– Applicants holding any of the following business innovation bonus qualifications:

* A patent registration or registered design certificate held for 1 year or more

* Proof of a registered trademark held for 1 year or more

* Proof of a formal joint venture agreement in place for 1 year or more

* Proof of export trade (exports accounted for 50% of sales in 2 of the last 4 years)

* Proof of ownership in a rapid-growth company established no more than 5 years ago, with annual turnover growth of over 20%, employing at least 10 staff for at least 1 year

* Proof of a government award or venture capital funding

5. The newly added NSW target sectors include:

Sydney region

– Advanced manufacturing

– Food and beverage manufacturing

– Agricultural technology

– Aerospace and defence

– Renewable energy and sustainability

– Emerging digital technology

– Cyber security

– Medtech

Regional NSW

In addition to the 8 sectors above, 3 more sectors are added:

– Technology-enabled primary industries (agriculture, forestry, animal husbandry and fisheries)

– Critical minerals

– Recycling and waste management

It’s clear that NSW’s new 188A policy is gradually shifting its requirements for applicants away from the previous focus on lower education levels and traditional retail, toward younger applicants with higher qualifications working in high-tech and manufacturing sectors. The government has clearly set a higher bar for the calibre of investor migrants it wants to attract in future.

Business requirements:

1. Business plan: applicants must clearly describe, in their business plan, how the business they intend to run in NSW will contribute to the NSW economy and create new jobs

2. Must create at least 2 full-time jobs

3. If purchasing an existing business, must demonstrate that, since the purchase, the business’s annual turnover

Victoria, thanks to Melbourne, has long been a top choice for many investor migrants, except that last year Victoria’s new policy raised the bar to a point that felt almost unreachable, putting off many business owners who wanted to move to Melbourne. On 13 July 2021, Victoria was the first state to officially announce the reopening of its 188A investor migration pathway — let’s take a look at what’s changed.

1. Age: under 55

2. English:

IELTS 4x 5.0 (or an equivalent score); if this isn’t met, applicants must satisfy one of the following 3 conditions:

– Completed at least 3 years of English-taught study and obtained a higher education qualification

– Completed the final year of secondary school in Singapore, Hong Kong, South Africa or New Zealand

– Completed another recognised English qualification, such as the International Baccalaureate or a Cambridge English certificate

3. Education:

Hold a STEMM field (Science, Technology, Engineering, Mathematics or Medicine) bachelor’s degree

, or hold an MBA (Master of Business Administration)

If applicants don’t hold these qualifications, they must have 3 years or more of relevant business experience in a target sector.

– Health, medical research and life sciences

– Digital

– Agri-food

– Advanced manufacturing

– New energy,  emissions reduction and circular economy

4. EOI score of at least 65 points

Queensland is undoubtedly the third most popular choice. Its natural scenery draws many investor migrants who want to settle here permanently. Another important factor is that Queensland’s 188A conditions are comparatively friendly, with a relatively lower investment amount, making it undoubtedly the best option for applicants with somewhat lower financial capacity.

Queensland hasn’t opened its pathway yet, though the state government has announced on its official website that applications will open in September.As at the time this article was published, there had been no further news, and we’re hoping the new policy continues to be favourable.

South Australia is roughly on par with Queensland in terms of applicant appeal — especially in recent years, when the SA government’s extremely low threshold for 132 investor migration (you’ve probably heard the phrase “AUD 600,000 and 2 years of exporting wine” gets you PR) has drawn countless business owners to choose SA for investor migration. Under the new policy, the 132 visa has now been scrapped, and attention has shifted to 188A requirements.

The new policy remains as friendly as ever — there’s no NSW/Victoria-style education or English requirement, and no special target-sector requirement. You simply need to:

1. Meet all of the Department of Home Affairs’ conditions

2. Be under 55

3. Intend to live in South Australia

4. Register with the SA government upon entering Australia after being granted the 188A visa

5. Provide a feasibility plan for the intended business

6. There’s no restriction on the type of future business, though pure import businesses aren’t encouraged — you’ll need to explain how it will bring economic benefit to South Australia

WA’s state government has no extra requirements at all — as the state government puts it: “As long as you meet the Department of Home Affairs’ requirements, our state has no other requirements,”as long as you’re willing to come and work and live in our state.”

WA’s mining downturn over the past couple of years has left things a bit subdued, and Perth has slipped from being one of the traditional major cities to being classed as a regional area. Apart from mining, other industries are relatively weak, so it doesn’t hold much appeal for investor migration clients.If your circumstances make it hard to meet other states’ requirements, WA can still serve as a backup option for your investor migration.

Canberra is Australia’s capital, about a 3.5-hour drive from Sydney. Besides meeting the Department of Home Affairs’ conditions, applicants need to plan to invest at least AUD 200,000 to buy or establish a business that will bring economic benefit to the ACT government.

Canberra has also added a small business migration programme this financial year, which falls under the skilled migration category and has lower investment and operating requirements than 188A — better suited to those with entrepreneurial and investment ideas and strong English skills, but comparatively less business experience and capital, namely local international student graduates.

The popular states with big cities everyone wants to move to have high thresholds, but apart from NSW and Victoria, the other states’ requirements aren’t especially demanding.

Tasmania’s investor migration pathway is currently also closed.

Because the Northern Territory has been allocated a smaller quota of 188A investor migration places, the territory government pays particular attention to the following when assessing nomination applications:

– Your capacity to make an economic contribution to the NT

– The benefits your future business will bring to the NT

– Your ability to carry out your proposed business activities

The NT governmentplaces significant weight on the business plan the applicant submits, as well as the projected investment amount for the applicant’s future business in the NT after obtaining the 188A visa.