Tag Archives: australia

What is a “fiscal year”?

Visa Subclass 188A, Visa Subclass 892, , , , , , , , , ,

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.

New Australian Business Visa for Entrepreneurs

Visa Subclass 188, , , , ,

The Australian Government has announced a new pathway to permanent residency in Australia for entrepreneurs.

The new pathway is the Entrepreneur stream of visa subclass 188, and is available for entrepreneurs who want to develop or commercialise their innovative ideas in Australia, and who have A$200,000 in funding from a specified third party.

Applications must be nominated by a State or Territory Government in Australia.

More specifically, applicants must:

  • Be under 55 years of age, although a State or Territory Government can waive this requirement if the proposed “Complying Entrepreneur Activity” will be of exceptional economic benefit to the nominating State or Territory
  • Have competent English, and be able to provide evidence of this at the time the visa invitation is issued
  • Be undertaking – or proposing to undertake – a “Complying Entrepreneur Activity” in Australia, and have a genuine intention to continue this activity

A Complying Entrepreneur Activity is an activity that relates to an innovative idea that will lead to the commercialisation of a product or service in Australia, or the development of an enterprise or business in Australia.

This activity must not relate to any of the following excluded categories:

  • Residential real estate
  • Labour hire
  • Purchase of an existing enterprise or a franchise in Australia

An activity is a Complying Entrepreneur Activity if all of the following requirements are met:

  • The applicant has one or more legally enforceable agreements to receive funding with a total of at least A$200,000 from one of the following entities:
    1. A Commonwealth Government agency
    2. A State or Territory Government
    3. A Publicly Funded Research Organisation
    4. An investor registered as an Australian Venture Capital Limited Partnership, or an Early State Venture Capital Limited Partnership
    5. A Specified Higher Education Provider
  • Under the agreement at least 10 per cent of the funding must be payable to the entrepreneurial entity within 12 months of the day the activity starts to be undertaken in Australia
  • The applicant held at least a 30 per cent interest in the entrepreneurial entity when entering into the agreement
  • The applicant has a business plan for the entrepreneurial entity noting how the innovative idea will lead to the commercialisation of a product or service in Australia, or the development of an enterprise or business in Australia.

The outcome of a successful application will be a provisional visa under subclass 188, permitting a stay in Australia of 4 years and 3 months.

In common with visas granted under the other streams of subclass 188, permanent residency for most will be secured through a subclass 888 visa.

Key requirements for the granting of a permanent residency visa under the Entrepreneur stream of subclass 888 include demonstrating a successful record of entrepreneurial activities in Australia.

A successful record of entrepreneurial activity will be measured by a combination of “key success factors” and “supporting success factors.”

Applicants for the subclass 888 visa will need to demonstrate the completion of at least two key success factors, or a combination of one key success factor and three supporting success factors.

Key success factors include:

  • Employing two or more Australians, permanent residents or other eligible persons
  • Generating an annual turnover of at least A$300,000
  • Filing a provisional patent or acquiring a standard or innovation patent
  • Receiving ongoing funding or investment in the entrepreneur activity
  • Entering into a partnership with a University
  • Selling an entrepreneurial venture for A$2,000,000

Supporting success factors include:

  • Diversifying entrepreneurial activities into other business areas
  • Receiving a statement of success from a State or Territory Government nominator
  • Receiving sponsorship from the corporate sector
  • Starting at least one other business or contributing to at least two other businesses
  • Receiving formal awards or recognition
  • Raising or contributing to social capital

As with the subclass 188 visa, for a successful subclass 888 visa application the activity undertaken must not relate to any of the excluded categories:

  • Residential real estate
  • Labour hire
  • Purchase of an existing enterprise or a franchise in Australia

We take this opportunity to remind intending applicants for a subclass 188 stream (whether under the Entrepreneur stream, or any of the other streams under subclass 188) that the 188 visa is technically a temporary residency visa, so there are also tax planning advantages available, particularly in respect of income and capital gains arising outside Australia.

Tax planning and business structuring advice is available through our partner business, GM Tax.

If you are interested in discussing your visa strategy, and/or making an application for an Australian Entrepreneur visa we will be delighted to hear from you. A free initial discussion is available.

NSW relaxes criteria for business skills visa sponsorship under subclass 188

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The NSW Department of Industry has removed the “excluded industry sectors” criteria from its business visa nomination requirements.

The “excluded industry sector” criteria restricted the type of businesses that business migrants could set up in Sydney.

According to the NSW Government: “By removing the criteria and making this change, we aim to attract more business migrants who provide goods and services to all areas of NSW.

The business migration program plays an important role in making NSW a globally attractive location to live, learn, work, invest and to produce goods and services. The new and improved criteria will support the aim of the NSW migration program to create jobs, boost productivity and strengthen the economy.”

The sectors previously excluded were:

Cafes & Restaurants; Takeaway Food Services; Supermarket & Grocery Retail Stores; Fruit & Vegetable Retailing; Specialised Food Retailing; Newspaper & Book Retailing; Clothing Retailing; Footwear Retailing; Other Personal Accessory Retailing; Houseware Retailing; Manchester & Other Textile Goods Retailing; Other Electrical & Electronic Goods Retailing.

If you are business owner who is interested in moving to New South Wales we invite you to complete the enquiry form on this page. We will be delighted to have an initial discussion with you on a no obligation basis about your plans and how we might help.