Case-study – 188B Investor Stream Visa

In this column, we will talk about 188B visa requirements with real-life cases on the visa.

The most common inquiries regarding the 188B Visa are what sort of properties included as assets, how they are valued, and how the time of proving assets is classified.

First, let’s take a look at what sort of properties are included as assets and how they are valued.

Ownership Interest in Business

The net value of this investment is equivalent to the applicant’s net assets in that business. For guidelines, refer to: 188A Visa Requirements – Proof of assets

Loans to a business

Loans listed in the balance sheet of a business will evidence the value and ownership of the loan. If the balance sheet or notes to the account do not specify the name of the lender, the applicant should provide additional supporting evidence – for example, loan documents. Under policy, only loans to a business appearing in a balance sheet are acceptable.

Cash on deposit

This is cash held in banks and other financial institutions. It should be evidenced by bank (or other financial institution) accounts or statements as at the end of the fiscal year. If there is more than one account involved, the balances should be taken as at the end of the fiscal year.

Stocks and bonds

Ownership of stocks and bonds may be evidenced, for example, by share scripts, bond certificates, debentures or transfer documentation. The market value of stocks and bonds is evidenced by the applicant using published financial information at the end of the fiscal year.

Managed funds

Managed fund products that primarily hold stock and bond investments are acceptable provided the applicant can demonstrate that they have made an informed decision on which fund to invest in and are not relying on a broker/ financial adviser to make the investment decision.

Real estate

Ownership of real estate is evidenced through legally recognised title deeds. The value of real estate can be determined through property valuations prepared by a licensed or registered valuer as at the end of the relevant fiscal year.

Residential property

Under policy, a family home is considered to be an asset owned for personal use and is incapable of being an eligible investment.

Situation may arise where an applicant claims that the family home is also used as an investment property. For example, the property, although owned by the applicant, may currently be leased out to a third party (including a relatives). However, it its policy in such cases that, in order for that property to be considered an eligible investment, the applicant must also own (not rent) the residential property in which they are currently living.

This may be evidenced by, but not limited to evidence of:

• Ownership through title deeds and
• Occupancy through accounts (for example, electricity bills) in the name of the applicant (or applicant and spouse or de-facto partner together)

A family home, while not usually an eligible investment asset (except for the circumstances described above), may still be capable of being a personal asset.

Gold and silver bullion

Applicants should provide receipts evidencing purchase from a bank or bullion dealer.

Superannuation

In practice, superannuation schemes are excluded from consideration as eligible investments because they are generally not managed directly by the applicant. Superannuation schemes allowing access to a portion of the lodged money may, however, still be capable of being personal assets for purposes.

Most of applicants for the 188B visa are confused about the time of proof of assets. Under the Australian Immigration Law, the time of proof of assets in the last two fiscal years is based on the last day of each fiscal year. Therefore, the applicants need verifications of assets on the last day of at least three years in total. In addition, you must also submit a statement of assets within 3 months prior to application.

The suitability of the visa applicants is determined based on the flow chart of total assets and a statement of business or investment experience of at least one year out of the last five years. Thus, the applicants for the 188B visa are recommended to prepare the documentation for proof of assets and investment in advance.

In the next column, we will take a closer look at the requirements for the 188C Significant Investor Stream Visa, 188D Premium Investor Stream Visa, and 188E Entrepreneur Stream Visa.