What is Business Investment and Net Assets requirements for 888A visa?

This is a state-nominated permanent residence visa that allows you to live in Australian permanently. This visa is for business owners and investors who already hold a four-year provisional 188 visa aligned to the visa stream you originally applied for. In this blog we are going to discuss Business Investment and net assets requirements for this visa:

The business investment and net assets requirements for the state nomination and visa under the 888A category. 

Business Investment Criteria: For the purposes of 888 nomination and visa, the term “business investment” encompasses investments in the following categories:

Property, Plant, and Equipment: This includes the acquisition cost of office spaces or warehouses specifically purchased for the operations of the business. 
Purchased Goodwill: Investments made in the form of purchased goodwill are also considered as part of the business investment. 
Inventory: Department will only take into consideration the closing balance of the most recent financial statement. Please note that inventory is not cumulative.

It’s important to clarify that cash held in the company’s bank account will not meet the criteria for business investment. However, we cannot provide specific examples of how to allocate the business investment, as it is ultimately the decision of the business owner to invest in ways that best suit their business needs. 

Net Assets and Job Creation Requirements: To qualify for nomination and visa under the 888A category, you must meet at least two out of the following three requirements: 

a) Employment of Full-time Employees: Your business(es) must have employed at least the equivalent of two full-time employees (excluding family members) consistently over the last 12 months. 
b) Net Value of Personal and Business Assets:

The net value of your (or your and your spouse’s combined) personal and business assets in Australia has been A$600,000:

In NSW:

A$900,000 if your business is located in Sydney, or 
A$600,000 if your business is located in Regional NSW

c) Net Value of Business Assets

The net value of your (or your and tour spouse’s combined) assets in your business(es) in NSW is at least A$200,000:

in NSW: 

A$300,000 if your business is located in Sydney, or 
A$200,000 if your business is located in Regional NSW

Please note that “personal assets” refer to items of value owned by the applicant. This is not limited to cash held in a personal account or property acquisition; it may include financial securities, gold and silver, motor vehicles, and other valuable items. The management or dispensation of personal assets in Australia is entirely at the discretion of the applicant. 

During the permanent stage of the application, applicants will be required to provide evidence that their personal assets in Australia were held for a minimum of 12 months prior to the application submission. 

Creating new jobs in NSW

You must have created a minimum of two new full time equivalent jobs while holding your provisional visa.

Employees must work in your main business (or main businesses) and:

be Australian citizens, Australian permanent residents, or holders of valid New Zealand passports.

not be members of your family.

If you purchased an existing business

You must show growth in the business since taking over through either an:

increase in annual turnover of at least 10%, or
increase in business assets of at least 25%

It’s important to note that immigration regulations can change over time, so it’s always best to consult with an Immigration Lawyer or a registered migration agent for the most up-to-date and accurate information regarding visa requirements and exemptions. Please call our office on 02 9286 8700 or email: ppmail@ppilaw.com.au

Parish Patience Immigration Lawyers is here to assist if you wish to move to Australia as a skilled worker and require professional advice. Book a Consultation for Expert Advice on subclass 888 Visa.