AVCAL urges SIV program expansion

Expanding the Significant Investor Visa (SIV) program would help Australian businesses benefit from venture capital funding and boost future economic growth, the Australian Private Equity and Venture Capital Association said.

In a submission to the Department of Immigration and Border Protection, AVCAL said the SIV program needed to tackle the "narrow band of eligible asset classes under the list of ‘complying investments'" if it is to boost investment.

"The program should be expanded in order to allow offshore investors to allocate capital to other asset classes that are critical to supporting the growth of Australia's future, such as venture capital and private equity," AVCAL chief executive Yasser El-Ansary said.

The SIV program has brought in $720 million into Australia from offshore individuals since its introduction in late 2012.

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"In the venture capital sector, new investment from private individuals over the last three years has averaged $33 million each year, and we think that a more expansive Significant Investor Visa program could lead to a substantial lift in that level of investment over the next few years," El-Ansary said.

Other countries such as the United States, United Kingdom, New Zealand and Singapore are using their SIV-equivalent programs to bring in offshore investment into industry sectors that need a boost, AVCAL said.