Significant Investor Visa (SIV): The $5 Million Pathway
The Significant Investor Visa was a stream of the Subclass 188 Business Innovation and Investment Visa that allowed high-net-worth individuals to gain Australian residence by investing $5 million in complying investments. It had no age limit, no English language requirement, and no points test — making it the most accessible business visa for wealthy migrants. The SIV closed to new applications in March 2024 alongside all other 188 streams, but existing holders can still transition to the permanent Subclass 888.
Quick Facts
| Detail | Information |
|---|---|
| Visa subclass | 188 (Significant Investor Stream) |
| Status | Closed to new applications (March 2024) |
| Investment required | $5,000,000 in complying investments |
| Duration | 4 years 3 months (provisional) |
| Age limit | None |
| English requirement | None |
| Points test | Not required |
| Pathway to PR | Subclass 888 after 4 years |
The Complying Investment Framework
The $5 million investment had to follow a strict allocation framework introduced in 2015. Investors couldn't simply park the money in property or government bonds — the framework was designed to channel funds into productive areas of the Australian economy.
Required Allocation
| Category | Minimum Amount | What It Covered |
|---|---|---|
| Venture capital / growth private equity | $500,000 (10%) | Funds investing in start-ups and small enterprises |
| Emerging companies | $1,500,000 (30%) | Managed funds investing in ASX-listed small caps |
| Balancing investments | $3,000,000 (60%) | Managed funds investing in a range of assets (not residential property) |
What Counted as Complying
- Investments had to be managed by Australian financial service licence holders
- Direct investment in residential real estate was prohibited
- Investments had to remain in place for the duration of the visa
- The investor could not use the investments as collateral for loans in Australia
- Withdrawals or restructuring required Department approval
What Did NOT Count
- Direct property purchases
- Investments held before the visa application
- Funds held in personal bank accounts
- Cryptocurrency or unregulated assets
- Investments in companies the applicant owned or controlled
Residence Requirements
SIV holders had to spend a minimum of 40 days per year in Australia over the four-year provisional period. This was significantly less than other 188 streams, which made it attractive for investors who wanted to maintain business interests overseas while establishing an Australian base.
The 40-day requirement could be met through cumulative stays — it didn't have to be a single continuous period. Many SIV holders spent time between Australia and their home country, with family members (often children attending school) spending more time in Australia.
Pathway to Permanent Residence
After holding the SIV for four years, the investor could apply for the Subclass 888 permanent visa if they:
- Maintained the $5 million complying investment for the full four years
- Met the 40-day annual residence requirement
- Had no adverse character or security issues
- Continued to hold the investments at the time of the 888 decision
The 888 application was relatively straightforward if the investment had been properly maintained. The main risk was investment losses — the Department required $5 million to still be invested, which meant investors who suffered losses had to top up their portfolio.
Extensions
The SIV could be extended twice, for two years each time, if the investor hadn't yet met the requirements for the 888. Each extension required the investments to remain in place and the residence requirement to continue being met. This gave SIV holders up to eight years on the provisional visa before needing to qualify for permanent residence.
Who Applied for the SIV?
The SIV was overwhelmingly popular with Chinese investors, who made up approximately 90% of all SIV applicants. Other common source countries included Hong Kong, Malaysia, South Africa, and Vietnam.
Common motivations included:
- Access to the Australian education system for children
- A stable political and legal environment
- Clean air, food safety, and quality of life
- Portfolio diversification outside their home market
- A pathway to Australian citizenship
Criticisms and Why It Was Closed
The SIV attracted significant criticism from economists, policy analysts, and government reviewers:
- Low economic impact: Studies found SIV holders created fewer jobs and contributed less tax revenue per capita than skilled migrants.
- Passive investment: The complying investment framework was better than direct property, but much of the money went into managed funds that would have attracted investment regardless.
- Residence gaming: The 40-day minimum was seen as too lenient, with some SIV holders spending the bare minimum in Australia.
- Integrity concerns: Questions about the source of funds, particularly regarding whether the wealth was legitimately earned.
The 2023 Migration Strategy review recommended closing the entire BIIP, including the SIV. The government implemented this in March 2024. Read more about the closure of the 188 visa.
Frequently Asked Questions
Can I still apply for the Significant Investor Visa?
No. The SIV closed to new applications in March 2024. No new applications are accepted.
I already hold an SIV. What happens to my visa?
Your visa is not affected by the closure. You can continue to live in Australia, maintain your investments, and apply for the Subclass 888 when eligible.
What happens to my investments if I don't get the 888?
If you choose not to apply for or don't qualify for the 888, you can withdraw your investments once your 188 visa expires. There's no requirement to keep the money in Australia after the visa ends.
Can I sell my investments during the four-year period?
You can restructure investments within the complying framework, but you can't withdraw the $5 million or move it into non-complying assets. Speak to your fund manager and migration agent before making changes.
What's the alternative for wealthy investors now?
The National Innovation Visa (Subclass 858) is the closest alternative, but it requires exceptional talent or a proven innovation track record — not just wealth. There is currently no direct replacement for the SIV's investment-for-residence model.
Did all SIV investors become permanent residents?
Most did, provided they maintained their investments and met the residence requirement. Refusals at the 888 stage were uncommon but did occur when investments fell below $5 million or the residence requirement wasn't met.
