Last December the Australian Federal Government announced their intention to introduce an Entrepreneur visa.

The Entrepreneur visa supports the ‘National Innovation and Science Agenda,’ which is intended to “… embrace new ideas in innovation and science, and harness new sources of growth to deliver the next age of economic prosperity in Australia.”  The Australian Federal Government hopes the new visa will attract appropriate skilled and talented entrepreneurs to Australia which will facilitate the commercialisation and development of innovative ideas.

The Australian Federal Government is now proceeding with the introduction of the keenly awaited Entrepreneur visa.

When will the Entrepreneur visa be introduced?

This visa will come into effect on 10 September 2016, which is two months earlier than initially proposed.

What will the application process involve?

The Entrepreneur visa will form part of the Business Innovation and Investment visa program for Australia.  The visa will form a separate ‘Entrepreneur stream’ as part of the Business Innovation and Investment (Provisional) (subclass 188) visa for temporary visa applications and Business Innovation and Investment (Permanent)(subclass 888) visa for applicants who have qualified for permanent residency.

The visa application will involve a three stage process:

1. Firstly a visa applicant will submit an Expression of Interest (EOI) through SkillSelect;
2. The visa applicant must be nominated by a State or Territory Government; and
3. The visa applicant, once invited by the Department of Immigration and Border Protection (DIBP), will lodge a visa application.

What are the main visa requirements?

The DIBP has published the main criteria for the Entrepreneur visa which are stipulated to be as follows:

• Visa applicants must be undertaking, or proposing to undertake, an entrepreneurial venture in Australia.
• The entrepreneurial venture must not be related to residential real estate or labour hire or involve purchasing an existing business or franchise.
• Visa applicants must also be under 55 years of age, have a competent level of English, and have at least 30 per cent interest in their entrepreneurial venture.
• There must be one or more funding agreements in place for at least $200,000 between the entrepreneur or venture and a third party funding body or bodies.  Sources of third party funding are limited to state and territory governments, Commonwealth agencies, Publicly Funded Research Organisations, and investors registered as a Venture Capital Limited Partnerships (VCLP) or Early Stage Venture Capital Limited Partnerships (ESVCLP).  Agreements outlining funds from a combination of these sources are also acceptable.
• Visa applicants must have a business plan outlining their plans for their venture in Australia.
• Visa applicants must meet the points test for a subclass 188 visa, with a minimum score of 65.  Points are allocated based on age, English language ability, qualifications, experience in business or investment, net personal and business assets, business turnover and innovation. It is noted that from 10 September 2016, five additional points will be available for students from Australian institutions with doctorate-level and masters by research qualifications in science, technology, engineering and mathematics, and information and communication technology fields.

What is the duration of the Entrepreneur visa?

The Entrepreneur visa, as part of the Business Innovation and Investment programme, will be granted for a four year period, with the possibility for an extension.

An Entrepreneur visa holder may be eligible for Australian permanent residency after four years if they can demonstrate the success of their enterprise, which will include factors such as business turnover, employment of Australians and ability to obtain significant financial backing.

From the introduction of the Entrepreneur visa on 10 September 2016, we will be assisting eligible candidates to prepare their Entrepreneur visa applications.

For more information, please feel free to contact the author by email at rebecca@hartmanlawyers.com.au or by telephone on +61 3 9021 0986 or +61 (0)423 701 747.