The Business Visa Program is an opportunity for business owners to enter Australia. Generally, business owners are not employees and as such usually don’t have skills that would ordinarily make them eligible for a skilled visa. In addition, as business owners, they most likely have spent a good part of their life building their businesses and are probably older than the skilled migration program allows.
So, what options do business owners have when it comes to entering Australia? If they have some capital behind them then they could potentially be eligible for a visa as part of the Business Visa Program.
The Business Innovation and Investment Visa (subclass 188) which makes up the Business Visa Program includes:
- Business Innovation Stream
- Investor Stream
- Significant Investor Stream
- Entrepreneur Stream
An overseas business owner with enough capital could buy a visa to enter Australia. For those that don’t have those funds, they can start a business utilising the aforementioned visa streams. Once their business reaches a certain threshold, they may be eligible to apply for permanent residence.
The Benefits of the Business Visa Program for Australia
The Business Visa Program is targeted at investors and high-wealth individuals. The investment portion of this visa contributes to Australia’s economic growth while also potentially boosting innovation.
The End of the Business Visa Program
In order to apply for these visas, applicants must be nominated by a state or territory government. Each migration program year, states and territories receive an allocation of places in the program. The total number of places allocated in August 2022 was just 810, split among the states and territories.
Aside from South Australia, all states and territories exhausted their allocation. In December 2022, migration planning levels for 2022/23 were released but there were no further places allocated for the Business Visa Program. While there was no announcement from the Federal Government regarding the closure of the program, the lack of additional places available in the program is an end to the program itself and is what has been referred to as a stealth closure.
Why Has the Business Visa Program Come to an End?
In late 2022, the Federal Government announced a review of Australia’s migration system with a big and necessary focus on skilled migration and addressing labour shortages.
It appears they may also have been influenced by the publication of the Grattan Institute’s paper which stated several points about the Business Visa Program, including:
- Business migrants pay less tax over their lifetime than skilled migrant workers
- The applicants of these visas generally tend to be older, earning lower incomes yet costing more in healthcare, aged care and pension benefits
- Granting more business visas takes places away from skilled migrants who are more likely to make a larger contribution to the Australian community over their lifetime
This visa is also considered one of the few visas in Australia whereby if applicants have enough money, they can buy their way into the country – a notion that gives this visa a bad rap.
Federal Home Affairs Minister, Clare O’Neil has also stated that she believes the program doesn’t add value to Australia.
The Future of the Business Visa Program
With a lack of support from the government and negativity surrounding this visa, the future of the Business Visa Program doesn’t look bright. While there is some uncertainty around the future of the Business Visa Program, many are hopeful that perhaps a name change or a rebrand not unlike the subclass 457 becoming the subclass 482, might help to rejuvenate the Business Visa Program.
If you would like to learn more about the Business Visa Program or any other aspect of migration, contact the team at Visa Solutions Australia. Book a consultation.
