We examine how SIV aligns with the National Innovation Visa (NIV), its advantages and challenges, and the opportunities available to existing SIV holders after they receive their permanent residency.

What is the Significant Investor Visa (SIV)

Introduced in 2012, the SIV was designed to attract wealthy foreign investors by offering a pathway to permanent residency in exchange for substantial investments. Applicants were required to invest a minimum of $5 million into complying investments, with at least 50% directed towards domestic venture capital (VC) and emerging Australian companies. The program initially drew interest from investors seeking both residency and access to Australia’s robust economy.

In 2022, the federal government placed the program on hold while it reviewed the broader migration framework. This suspension left hundreds of pending applications in limbo. In December 2024, when the government confirmed the National Innovation Visa (NIV) would not include any form of investor visa, the message was clear: the existing SIV had been officially retired.

What is the National Innovation Visa (NIV)?

NIV is the Australian government’s new flagship visa program aimed at attracting highly skilled professionals, entrepreneurs, and technology innovators to support the country’s economic growth and competitiveness, unlike the SIV, which focused on financial capital. By excluding an investor visa component, the NIV signals a policy move away from residency-for-investment schemes and towards a skills-based migration system.

Could SIV return?

However, recent developments suggest that the SIV may not be gone for good. Peter Dutton, leader of Australia’s opposition Liberal Party, has indicated plans to revive the SIV program. During a private fundraising event, Dutton expressed intentions to reintroduce the visa, potentially with a different design. He defended the SIV as a means to attract capital and create jobs, though specific details and timelines for this revival remain unspecified.

Dutton’s comments have reignited debate surrounding the SIV. Critics of the original program argued that it failed to deliver meaningful economic benefits and exposed the country to risks such as money laundering. In contrast, supporters of the SIV highlight the significant income it generated for service providers, including migration agents, banks, and investment advisers. They argue that a well-structured SIV could bolster economic growth and restore Australia’s competitive edge in attracting investment.

For investors who submitted their SIV applications prior to the program being placed on hold in 2022, there is some reassurance for their pending applications. It is our understanding that these applications—will still be processed.

Those who meet the program’s requirements can continue their pathway to permanent residency, a pathway that has always existed under the SIV program.

An Opportunity for Existing SIV Holders

Existing SIV holders who successfully transition to permanent residency (PR) have always had the option to reallocate their investments beyond the previously mandated complying investments after receipt of the PR visa.

While this is not new, it highlights an opportunity for investors to reassess their portfolios and pursue more tailored and diversified investment strategies that better align with their long-term objectives.

Under the SIV, 50% of the required $5 million investment had to be directed towards VC and listed emerging Australian companies. While these sectors are critical to economic growth, they can carry a higher degree of risk and speculative exposure. Additionally, the limited selection of complying investments at times involved higher fee structures, potentially making returns less attractive for investors.

Those investors who obtain PR can seek greater flexibility and are no longer constrained by the SIV investment framework and can explore a more diversified portfolio that better aligns with their financial objectives. This includes:

• Diversifying by Asset Class: Moving beyond higher-risk asset classes such as VC investments into more balanced asset allocations, including equities, fixed income, private assets, and alternative assets.
• Global Investment Opportunities: Expanding their portfolios to include international markets, enabling geographical diversification and reducing reliance on Australian-specific exposures.
• Tailored Financial Advice: Engaging with trusted advisers, such as Lipman Burgon & Partners (LBP), to develop bespoke investment strategies specifically designed to meet a client’s objectives while prioritizing long-term wealth preservation and growth.

For many former SIV participants, this newfound freedom presents both opportunities and challenges. While the flexibility to reallocate capital is welcome, it also requires careful planning to ensure optimal outcomes. Financial advisers, like LBP, can play a crucial role in guiding investors through this transition. By offering tailored advice, advisers can help former SIV holders align their investments with their personal goals, risk tolerance, and long-term objectives.

The potential revival of the SIV by the opposition introduces a new dynamic to Australia’s immigration and economic landscape. If reintroduced, the program would need to address previous criticisms and implement safeguards to ensure it delivers tangible economic benefits while mitigating risks. As the political discourse evolves, investors should stay informed about potential policy changes and consider how these developments may impact their investment strategies and residency plans.

In conclusion, while the SIV has been officially retired, discussions about its potential revival underscore the ongoing debate about the role of investor visas in Australia’s economic strategy. Investors should remain vigilant and seek professional advice to navigate this evolving landscape effectively.

Please reach out via the form below with any specific questions about the information above, or register to receive updates via email. The team periodically travel internationally, with our next trip being to South Africa. Please let us know if you would like to hear about our upcoming roadshows.

Kind regards,

Jason Rademan

Partner

Jason Rademan, CFP , TEP

PARTNER

Jason is a partner and private wealth adviser at Lipman Burgon & Partners. He has over 15 years of experience in wealth management and other financial services advisory roles. Prior to joining Lipman Burgon & Partners, he spent six years working for a Canadian Private Bank, gaining experience in managing high-net-worth clients and family offices.

Jason works closely with the investment team to originate and evaluate specialist, private market opportunities (e.g. private equity, private credit and hedge funds). He is involved in the management of family office clients in Sydney and has experience working with multi-jurisdiction tax structuring and clients migrating to Australia.

Jason holds a Bachelor of Commerce, Higher Diploma in Tax Law and Graduate Diploma in Financial Planning. Jason is a Certified Financial Planner (CFP) and holds a full Trust & Estate Practitioner (TEP) designation with the Society of Trust and Estate Practitioners.

Stephen Katzenellenbogen

PRIVATE WEALTH ADVISER

Stephen is a private wealth adviser at Lipman Burgon & Partners. He has over 20 years’ experience in wealth management providing discretionary and non-discretionary advice to individuals, trusts, companies, and untaxed bodies such as charitable originations and not-for-profit associations.

Stephen specialises in asset management, investment strategies and strategic advice. He is focussed on developing long-term relationships with clients and their families to assist them manage their wealth and achieve their financial goals.

Stephen holds a Bachelor of Commerce (Honours) and a Graduate Diploma in Financial Planning.

Contact Us

Please reach out via the form below with any specific questions about the information above or register to receive updates via email. The team periodically travel internationally, with our next trip being to South Africa. Please let us know if you would like to hear about our upcoming roadshows.