Category Archives: Visa Subclass 892

Business Owners – Permanent Visas for Australia – Subclass 892

A subclass 892 visa application is the most popular pathway for those who have been living in Australia as the holders of a provisional business visa under sub classes 160, 161, 163, and 164, and who are owning and managing a business in Australia.

Requirements for the granting of a permanent residency visa under subclass 892 are that the visa applicant:

  • Is the holder of one of the above provisional business visas, or a subclass 162 or 165 visa
  • Has been resident in Australia as the holder of one of these visas for at least 1 out of the 2 years immediately before the visa application is lodged
  • Has a genuine commitment to continue to maintain business or investment activities in Australia
  • Has never been involved in unacceptable business activities
  • Is sponsored by a State or Territory Government
  • Has had direct and continuous involvement in the day to day management of up to two businesses operating in Australia for the past two years
  • Owns at least one of the following:
    • – 51 per cent of a business where the annual turnover is less than A$400,000
    • – 30 per cent of a business where the annual turnover is A$400,000 or more
    • – 10 per cent of a business that is a publicly listed company
  • For the 12 months immediately before the visa application is submitted to the Department of Immigration the main business (or two main businesses together) had a turnover of at least A$200,000

In addition, for the 12 months immediately preceding the lodgment of the visa application with the Department of Immigration 2 out of 3 of the following requirements must be satisfied:

  • The net value of the visa applicant’s (or the applicant’s partner’s, or the applicant and his/her partner’s combined) assets in the main business (or two main businesses) in Australia was at least A$75,000
  • The net value of the visa applicant’s (or the applicant’s partner’s, or the applicant and his/her partner’s combined) personal and business assets in Australia was at least A$250,000.
  • The business/es employed at least the equivalent of one full-time employee who is:
    • – An Australian citizen
    • – An Australian permanent resident
    • – A New Zealand passport holder
    • – Not a member of the applicant’s family.

The subclass 892 visa application must be lodged before the expiry of the presently held provisional business visa, and when the visa application is lodged with the Department of Immigration an ownership interest in the Australian business/es must have been in place for at least 2 years.

Clearly there is a need to plan ahead to ensure a business in Australia is not acquired or set up too late to meet the requirement for a 2 year ownership interest, and to ensure business accounts are available and State or Territory sponsorship has been secured.

All of these requirements are to be satisfied at the time the visa application is lodged with the Department of Immigration’s Business Skills Processing Centre.

What is a “fiscal year”?

The term “fiscal year” appears generally in the requirements relating to the pathways under visa subclass 188.

For example, in the Business Innovation stream of visa subclass 188 applicants are required to deliver: “… financial statements to cover 2 fiscal years before the applicant is invited to apply for the visa. Fiscal years must cover a full 12 month period.”

Under the Investor stream of visa subclass 188 applicants applicants must: “… have owned net assets of AUD 2,250,000 throughout the 2 fiscal years immediately before the applicant is invited to apply for the visa.”

In addition, under the Investor stream: “… if the application is made 3 months or more after the end of the most recent fiscal year, they must complete another Statement of Assets and Liabilities Position for their financial situation as of the date they apply for the visa.”

Migration legisation provides that the term “fiscal year” in relation to a business or investment, means:

  • If there is applicable to the business or investment by law an accounting period of 12 months — that period; or
  • in any other case — a period of 12 months approved by the Minister in writing for that business or investment.

According to the Department of Immigration: “Fiscal years vary in different countries, some countries keep to a calendar year but other countries prefer the tax period to be different to the busy end of calendar year period.

Officers may approve a period as a fiscal year provided it is a 12 month period, and has been accepted as applying to that business/investment for taxation or reporting purposes by authorities in the country in which the business/investment operates and reports.”

In the UK limited companies and unincorporated businesses such as sole proprietors or partnerships can adopt any balance sheet date, even though the tax year ends on the 5th of April (31st of March for companies).

As such we have found that the Department of Immigration will work with the business balance sheet as being the end of the fiscal year when an application is submitted under the Business Innovation stream.

The Managing Director of Go Matilda Visas – Alan Collett – is a qualified Chartered Accountant (Australia, and England & Wales) and is a Registered Migration Agent (MARN 0102534), with many years of experience. Fees for visa assistance are fixed in amount, and his knowledge in the areas of accounting, tax (UK and Australia), and visas are highly regarded. If you are a business owner or an investor who wants to move to Australia we look forward to having a free initial discussion.