NSW Waratah bonds no longer compulsory for Significant Investor Visa applicants
Losing applicants to Victoria, the NSW government has scrapped its minimum investment in NSW Waratah bonds for its Significant Investor Visa (SIV) requirements.
The decision will make it easier for overseas applicants to seek NSW investment.
The Deputy Premier and Minister for Trade and Investment Andrew Stoner from 1 September, applicants seeking NSW nomination will be able to invest 100% of their funds in the complying investment of their choice.
“Nominations will no longer be tied to a minimum investment in NSW Waratah bonds,” Stoner said.
Under the Significant Investor Visa, successful applicants are required to invest $5 million in complying investments for a minimum of four years before being eligible to apply for a permanent visa.
Up to now, NSW nominated applicants have had to make a minimum investment of 30% of this, or $1.5 million, in NSW Waratah Bonds used to fund state infrastructure projects. Returns on a Waratah bond are less than that desired by some investors.
“To make it easier for investors, and to give them more choice, the NSW government is removing the requirement to invest a minimum amount in Waratah bonds," Stoner advised.
Victoria has attracted 49% of investment from SIV applicants, while NSW has received 35%.
In the past year, $300 million from Chinese nationals has been invested in Waratah bonds, which are transferred into Restart NSW and applied solely to new infrastructure projects.
"It will provide a level playing field between NSW and other Australian States to attract SIV investors," David Chin, the BasisPoint Consulting managing director said.
The federal government has attracted $1.7 billion and granted 343 residency visas to foreigners, 85% to Chinese, under the significant investor visa program.
The figures show that at 31 July, another 602 people applied.
Since the 2012 scheme started slowly, the Abbott government implemented processing measures that has increased the approval rate, granting 31 investor visas in June and 57 in July.
