Business Innovation and Investment Visa (Subclass 188) — Now Closed
The Subclass 188 Business Innovation and Investment Visa was Australia's primary visa for business owners, investors, and entrepreneurs seeking to establish or manage a business in Australia. As of 24 March 2024, the visa closed to all new applications. Existing 188 holders can still transition to the permanent Subclass 888, but no new 188 applications are accepted. The closure was part of the government's migration system overhaul following the 2023 Migration Strategy review.
Quick Facts
| Detail | Information |
|---|---|
| Visa subclass | 188 |
| Status | Closed to new applications (March 2024) |
| Replacement | National Innovation Visa (Subclass 858) for some streams |
| Existing holders | Can still apply for Subclass 888 permanent visa |
| Streams affected | All five streams closed |
| Final applications | Must have been lodged before 24 March 2024 |
What Were the 188 Streams?
The Subclass 188 had five distinct streams, each targeting a different type of business migrant:
Business Innovation Stream
For business owners with a turnover of at least $750,000 who wanted to establish a new or existing business in Australia. Required a state or territory nomination and a minimum points score on the business innovation test.
Investor Stream
For people willing to invest at least $2.5 million in an Australian state or territory government bond for four years. Required state nomination and demonstrated business or investment experience.
Significant Investor Stream (SIV)
For high-net-worth individuals willing to invest $5 million in complying investments. No age limit, no English requirement, no points test — but the investment had to follow a strict framework. This was the most popular stream for wealthy migrants. Read more about the Significant Investor Visa.
Premium Investor Stream
For ultra-high-net-worth individuals investing $15 million in complying investments. Required an Austrade nomination. Very few applications were ever made under this stream.
Entrepreneur Stream
For people with a third-party funding agreement of at least $200,000 for an innovative business idea. Required state nomination and endorsement of the business concept.
Why Was the 188 Closed?
The 2023 Migration Strategy review found that the Business Innovation and Investment Program (BIIP) delivered poor outcomes relative to its cost to the Australian economy:
- Low economic contribution: Many 188 holders did not create significant employment or economic activity in Australia.
- Tax revenue shortfall: Some streams, particularly the SIV, attracted investors who contributed less tax revenue than skilled migrants.
- Integrity concerns: The review identified risks around the source of funds and the quality of business proposals.
- Better alternatives: The government decided that skilled migration and the reformed National Innovation Visa would deliver better outcomes.
The closure was announced alongside the broader migration reform package that also introduced the new Skills in Demand visa to replace the TSS 482.
What Happened to Applications Already Lodged?
Applications lodged before 24 March 2024 continue to be processed under the existing rules. If you applied before the closure date, your application proceeds as normal. However, processing times have extended significantly as the Department prioritises other visa categories.
If your 188 application is granted, you still receive the temporary 188 visa and can later apply for the permanent Subclass 888.
What About Existing 188 Visa Holders?
If you already hold a Subclass 188 visa, you are not affected by the closure. Your visa remains valid, and you can still:
- Live and work in Australia for the duration of your visa
- Meet the business or investment requirements
- Apply for the Subclass 888 permanent visa when eligible
- Include family members on your application
The pathway from 188 to 888 permanent residence remains open. The closure only affects new 188 applications.
What Are the Alternatives Now?
National Innovation Visa (Subclass 858)
The National Innovation Visa replaced parts of the 188 program. It targets individuals with exceptional talent or a proven track record in innovation. It's more selective than the old 188 but offers a direct permanent visa rather than a temporary-to-permanent pathway.
Skilled Migration
If you have skills on the relevant occupation lists, skilled migration visas such as the Subclass 189, 190, or 491 may be available. These require skills assessments and points tests but offer established pathways to permanent residence.
Employer-Sponsored Visas
If you plan to work in Australia rather than run a business, the Skills in Demand visa or the Subclass 494 regional visa may be options — provided you have a sponsoring employer.
State and Territory Programs
Some states and territories have their own business migration programs that operate alongside (or independently of) federal visa programs. Check with the relevant state government for current opportunities.
Impact on State and Territory Nominations
States and territories that previously nominated 188 applicants have redirected their business migration programs. Some now focus on the National Innovation Visa pathway, while others have created their own business attraction programs that don't involve a specific visa subclass.
If you held a state nomination for a 188 that was never lodged, that nomination is no longer usable for a 188 application.
Frequently Asked Questions
Can I still apply for a 188 visa?
No. The Subclass 188 closed to new applications on 24 March 2024. No new applications can be lodged under any stream.
I already have a 188 visa. Is my visa cancelled?
No. Existing 188 visa holders are not affected. Your visa remains valid and your pathway to the Subclass 888 is preserved.
My 188 application was lodged before the closure. Will it still be decided?
Yes. Applications lodged before the closure date continue to be processed under the existing rules.
Is the Significant Investor Visa still available?
No. The SIV was a stream of the 188 and closed with it. However, the investment framework and history remain relevant for existing holders transitioning to the 888.
What is the best alternative for business migrants now?
It depends on your profile. The National Innovation Visa suits those with exceptional talent or a strong innovation track record. Skilled migration suits those with in-demand occupations. Employer sponsorship suits those with a job offer. Consult a registered migration agent for advice specific to your situation.
Will the 188 reopen?
There has been no indication from the government that the 188 will reopen. The closure was positioned as a permanent policy change, not a temporary pause.
