The Canberra Small Business Owner (SBO) stream has just been officially announced, and the July 2021 version of the Guideline has also gone live, so the first half of this article mainly introduces the new SBO stream, while the second half covers some adjustments to the existing Guideline content.

Part One:

Canberra Small Business Owner (SBO) stream

officially launched

NOW LIVE

The vast majority of the content doesn’t differ much from the draft version we obtained on 2 July,the main changes are as follows —

1. SBO Subclass 190 applicants are no longer required to hold a visa permitting full-time work

2 July draft version: SBO Subclass 190 applicants needed to hold a visa permitting full-time work (at least 35 hours a week), while Subclass 491 applicants did not need to hold a visa permitting full-time work (at least 20 hours a week was sufficient, including on a student visa)

6 July official version:Neither SBO Subclass 190 nor Subclass 491 applicants are required to work full-time — a visa with work rights is sufficient. However, Subclass 190 applicants need to obtain at least AU$26,000 in taxable income from the business over 6 months, while Subclass 491 applicants need to obtain at least AU$13,000 ofTaxable income

2. Restrictions on business type have been added

2 July draft version: as a majority shareholder (holding more than 50% ownership) of an ACT-registered local business, the business must have been operating for at least 6 months (for both Subclass 190 and 491). Businesses that are not recognised include: sub-tenancy, ride-share (such as Uber), taxi driver, delivery/courier, or a business already used for a previous small business stream application (this mainly affects applications made later)

6 July official version:It has been added that the business’s operations must not rely mainly on customers from other states or overseas,and must be based mainly on activity local to Canberra(because the original purpose of this stream is to support local small businesses in Canberra, we recommend keeping this in mind when choosing a small business).

#If you’re in any of the following situations

Come and find out!

No hope of a Subclass 189 invitation all year — a complete shutout

for example accountants/auditors/architects/lawyers/teachers, etc…

Your occupation isn’t being invited in your state

for example accountants in NSW and VIC, Quantity Surveyors in QLD…

There are invitations, but the points/job requirements are out of reach for you

for example ICT/engineering in NSW, or unable to find work in TAS…

You’ve just graduated, and building up points/work experience is a long road ahead

for example, insufficient work experience means the employer-sponsored route isn’t available, even with an across-the-board PTE score of 8

Given that this is a newly launched stream with additional places, we believe competition for applications this financial year will be relatively low and the invitation score should be relatively easy to reach. It’s a great policy — grab it as early as you can!

SBO stream

for Subclass 491 and 190

application and points requirements

Applying for Subclass 491

Residence requirement:

Before submitting the Matrix, at least3 months of continuous residence

Business requirement:

— As a majority shareholder (51%,holding more than 50% ownership) of an ACT-registered local business,the business must have been operating for at least 6 months.

— The business’s annual turnover must be at least AU$200,000(AU$100,000 over half a year)

— During this period, the business needs tobe profitable

Employment requirement:

— As the majority shareholder, the applicant needs, before submitting the MATRIX, in thepreceding 3 months to have drawn at least AU$13,000 oftaxable income(the applicant’s visa does not need to permit full-time work — a student visa is fine)

— Must employ at least one Australian citizen/PR holder/New Zealand citizen residing in Canberra,employed for at least 13 weeks before submitting the Matrix, working no fewer than 20 hours a week.However, the employment does not need to be continuous, nor does it have to be fulfilled by just one person (for example, you could employ A for 7 weeks, then, 2 months later, employ B for 6 weeks)

Applying for Subclass 190

Residence requirement:

Before submitting the Matrix, at least6 months of continuous residence

Business requirement:

— As a majority shareholder (51%, holding more than 50% ownership) of an ACT-registered local business,the business must have been operating for at least 6 months.

— The business’s annual turnover must be at least AU$200,000 (pro-rated if the period is under or over a year)

— During this period, the business needs tobe profitable

Employment requirement:

— As the majority shareholder, the applicant needs,before submitting the MATRIX, in the preceding6 months, to have derived at least AU$26,000 in taxable income from the business(the applicant’s visa does not need to permit full-time work — a student visa is fine)

— Must employ at leasta Canberra resident who isan Australian citizen/PR holder/New Zealand citizen,employed for at least 13 weeks before submitting the Matrix, working no fewer than 20 hours a week.However, the employment does not need to be continuous, nor does it have to be fulfilled by just one person (for example, you could employ A for 7 weeks, then, 2 months later, employ B for 6 weeks)

SBO Matrix points

Meeting the operating requirements above simultaneously satisfies the points requirements,the only difference being that operating for 6 months earns 10 points, while operating for 12 months earns 20 points.

Because both Subclass 190 and 491 require applicants to operate the business for at least 6 months,the 10-point Matrix bonus is therefore guaranteed at a minimum.

# The unique advantages of the ACT SBO stream

Essentially no restriction on the applicant’s visa type

Of the two streams Canberra already had, one was for employer-sponsored visa holders and the other for general applicants, but Subclass 190 required the main applicant to work full-time in Canberra for at least 6 months — this excluded some students whose Subclass 485 had already expired and who had since renewed onto a student visa from pursuing Subclass 190,but now, going through SBO removes the strict visa-type restriction — of course, your visa still needs to carry legal work rights.

Covers all skilled migration professions

Hundreds of occupations are eligible to apply — no need to worry about changes to the ACT Critical Skills List

No minimum investment requirement, and the turnover requirement is modest

Very well suited to applicants without extensive business experience or capital,such as those with an international student background

Out-of-state students going through SBO don’t need to worry about struggling to reach the Matrix points

For example: an accounting master’s graduate from Sydney, with a spouse, with an across-the-board English score of 7

Without the small business bonus points, the score typically achievable would be:

Main applicant’s English 10 points

Spouse’s English (an across-the-board 7) 5 points

Spouse holds a higher education qualification 5 points

Occupation on the ACT Critical Skills List 20 points

Master’s qualification 15 points

Operating for half a year plus SBO gives 10 points — that already brings the total to 65 points

Operating for a year plus SBO gives 20 points — that already brings the total to 75 points

For a more detailed analysis of the background and context behind the ACT SBO stream, see:[Major exclusive!] The Canberra Small Business stream bursts onto the scene! The best way out for accountants and other students who’ve run out of options!

Tune in tonight! Canberra small business

official announcement webinar!

Covering all the key updated details

(compared with the 2 July draft version)

Time: 8:00pm, 6 July 2021 (6:00pm Beijing time)

— Why so many out-of-state students have moved to the ACT over the past year

— The core requirements of the small business stream

— The absolute advantages of the ACT small business stream

— Recommendations on the stream’s stability and long-term planning

— Which out-of-state students should start preparing right away

(Occupation? Points? Background?)

— Q&A session

Press and hold the QR code below, and note: Canberra

to apply to join the group

Part Two: 6 JulyGuideline content

updates to other sections

(applicable to applicants under all three streams)

Please read on

1. Spouse qualification points

Previously: spouse with English scores of 6 across all four components + a diploma or higher qualification of at least 3 years from any country —- 5 points

Now: spouse with English scores of 6 across all four components + an Australian 3-year Trade qualification / Australian bachelor’s / Australian postgraduate / Australian doctoral qualification (the bachelor’s, postgraduate and doctoral qualifications do not need to be 3 years) —- 5 points

Note: spouses should arrange 13 weeks of continuous work at 20 hours a week, plus English scores of 6 across all four components, as early as possible, to substitute for the qualification points

2. Canberra employment

Previously: required the employer to have legally operated in Canberra for at least one year before submission

Now: this requirement has been removed — the employer can be a newly established Canberra company

Note: the employment requirement has been relaxed — any employer registered locally in Canberra will do

3. Canberra property points

Previously: there were three options: a business with AU$200,000 turnover / starting up a technology company / property

Now: only a property with an AU$250,000 deposit (residential or commercial) earns points

Note: those with a business turning over AU$200,000 can shift to the newly added Small Business Owner (SBO) stream

4. ACT employment type points

Previously: full-time annual salary of no less than AU$50,000; part-time hourly rate of no less than AU$26; ABN self-employed weekly income of no less than AU$1,000 (full-time), or AU$500 (part-time)

Now: the full-time annual salary requirement has been removed; hourly rate of no less than AU$26; small business stream — personal pre-tax income over the past 3 months of no less than AU$13,000; ABN self-employed weekly income of no less than AU$520;

We’ll release a short video summarising the other changes to the Guideline in detail — stay tuned!

If you have questions about the changes to the points

or would like an assessment against Canberra’s two existing streams,

feel free to add our customer service contact below