The Business Innovation and Investment Program (BIIP) Closes: What This Means for Future Applicants?
End of an Era: BIIP to Close Permanently
The Australian Government has announced that the troubled Business Innovation and Investment Program (BIIP) will permanently close on July 31, 2024. After this date, no new visa applications for the subclass 188 – Business Innovation and Investment (Provisional) visa will be accepted.
A History of Tweaks and Adjustments
The BIIP has seen numerous changes and adjustments by successive governments over the years. Despite the initial promise and fanfare, the program has not lived up to expectations. It was designed to attract successful business innovators and investors to contribute to the Australian economy through five distinct streams:
- Business Innovation
- Investor
- Significant Investor
- Premium Investor
- Entrepreneur
Challenges and Shortcomings
One notable issue was the introduction and subsequent repeal of the Premium Investor stream due to neglect. Additionally, primary applicants for the Business Innovation and Investor streams were required to pass a business skills points test, which proved to be a significant hurdle for many.
Criteria for Permanent Residency
A major problem with the program was the criteria for transitioning from the provisional subclass 188 visa to the permanent subclass 888 – Business Innovation and Investment visa.
- Investor Stream: Applicants needed to make and retain complying investments for the minimum period and meet any additional investment activities required by their nominating state or territory. This criterion escalated over the years but remained manageable for investor visa applicants.
- Business Innovation Stream: For business innovators, who are essentially business owners and managers, meeting the turnover requirements of an eligible business proved challenging. This discouraged innovation, as provisional visa holders tended to opt for conservative, existing businesses with high prices and inelastic demand, such as tobacconists, rather than developing unique new ventures.
The Final Blow
A 2023 Productivity Commission report was particularly damning, revealing that the average public contribution of BIIP visa holders was negative. This was a significant issue for a visa type intended to bring economic benefits to the country.
Transition Period and Future Prospects
The official end date for new BIIP applications is July 31, 2024. Applications must be submitted before this date, and it is expected that the Department of Home Affairs will remove the option in Immi Account soon after.
Existing subclass 188 visa holders are still able to apply for the subclass 888 visa or extend their 188 visas under the Business Innovation Extension stream or Significant Investor Extension stream if needed. The lack of new nominations in the past year has effectively meant that the program has been dormant for many months.
What’s Next?
A new National Innovation visa is set to replace the BIIP and will be available by the end of the year. This new visa aims to address the shortcomings of the BIIP and provide a more effective pathway for attracting and retaining business innovators and investors in Australia.
Stay tuned for further updates as the details of the National Innovation visa are released. This change represents a significant shift in Australia’s approach to business and investment migration, with the hope that it will lead to more meaningful contributions to the Australian economy.
For more information and updates on the new visa program, please contact Vision Consultants Australia. We’re here to help you navigate these changes and find the best opportunities for your future in Australia.
