Proof of funds for the business visa (subclass 188): thresholds by stream

Business Innovation stream

The Business Innovation stream targets experienced business owners who want to establish, develop, or manage a new or existing business in Australia. The financial thresholds are based on the applicant's existing business track record rather than a fixed investment amount.

The core financial requirements are a business turnover of at least AUD 1.25 million per year in at least two of the four fiscal years immediately before the invitation to apply, and net business and personal assets of at least AUD 1.5 million that can be transferred to Australia within two years of visa grant (Department of Home Affairs).

Turnover is assessed based on the applicant's ownership share of the business. If you own 51% or more of a business with AUD 2 million turnover, the full AUD 2 million counts. If you own 30–50%, the business must have a turnover of at least AUD 1.5 million. If you own 10–29%, the business must have a turnover of at least AUD 2.5 million. These tiered thresholds mean the ownership percentage directly affects how large the business needs to be.

The AUD 1.5 million net assets figure includes both business and personal assets. It can comprise property, business equity, cash, investments, and other assets, minus liabilities. These assets must be lawfully acquired and available for transfer to Australia. Assets encumbered by loans or court orders may not count at full value.

Investor stream

The Investor stream is designed for applicants who want to make a designated investment in an Australian state or territory government bond or similar instrument. The financial bar is higher than the Business Innovation stream.

The core requirements are a minimum investment of AUD 2.5 million in a designated investment in an Australian state or territory for at least four years, and net business and personal assets of at least AUD 2.5 million (Department of Home Affairs).

The designated investment must be a qualifying government bond or managed fund nominated by the state or territory. The investment is locked for a minimum of four years — the applicant cannot withdraw it during this period without affecting their visa status.

The AUD 2.5 million net asset threshold is separate from the investment amount. The assets must be available for transfer to Australia, and the applicant must be able to demonstrate their legitimate source.

Significant Investor stream

The Significant Investor stream (SIV) has the highest financial threshold but the fewest other requirements — there is no age limit, no English language requirement, and no business skills assessment. The financial commitment is the sole primary criterion.

The core requirement is a complying investment of at least AUD 5 million in approved investment categories for at least four years (Department of Home Affairs). The AUD 5 million must be allocated across three prescribed categories: at least AUD 500,000 in venture capital and growth private equity funds investing in start-ups and small private companies, at least AUD 750,000 in approved managed funds investing in emerging companies listed on the ASX, and the balance (up to AUD 3.75 million) in a "balancing investment" of approved managed funds that may invest in a range of assets including ASX-listed companies, Australian corporate bonds, and Australian real property (but not residential property).

The investment must be maintained for the four-year visa period. If the value of the investments falls below AUD 5 million due to market movements, the applicant is not required to top up, but if they voluntarily withdraw funds, they must reinvest within 30 days to maintain compliance.

What evidence the department requires

The documentation required for a 188 visa is more extensive than for any other Australian visa category. Applicants should expect to provide audited financial statements for all businesses in which they hold an interest (covering the relevant fiscal years), company registration documents from the relevant jurisdiction (equivalent of ASIC company extract), share certificates or partnership agreements confirming ownership percentages, independent property valuations from qualified valuers for any real property included in the net assets calculation, bank statements from all accounts held by the applicant and their spouse (typically 12 months or more), brokerage and investment statements for shares, bonds, or managed funds, loan documents and mortgage statements for any liabilities that offset assets, tax returns or assessments from the applicant's country of residence (typically three to five years), and evidence of the source of wealth — particularly if assets were acquired through inheritance, sale of business interests, or other non-employment means.

For the SIV stream, additional documentation includes confirmation of the complying investment from each fund manager, evidence of the investment amounts in each of the three prescribed categories, and ongoing compliance reports as required by the state or territory.

State and territory nomination

All 188 visa applicants must be nominated by an Australian state or territory government before they can apply. Each state and territory has its own nomination requirements, which may be more stringent than the federal requirements.

Some states impose additional financial requirements — for example, requiring the applicant to demonstrate a higher level of net assets than the federal minimum, or requiring a commitment to invest in specific sectors or regions within the state. Others assess the applicant's business plan and its potential economic benefit to the state.

The nomination process involves a separate application to the state or territory, often with its own fee (typically AUD 500–1,500), and a separate assessment of the applicant's financial capacity. Applicants should research the specific requirements of their target state or territory before committing to an application.

Handling assets across multiple countries and currencies

Most 188 visa applicants hold assets in multiple countries. A Chinese business owner may have a manufacturing business in Guangdong, an investment property in Shanghai, cash in a Hong Kong bank, and shares in a US brokerage account. Demonstrating the value and accessibility of all these assets requires careful documentation.

Currency conversion is applied at the prevailing exchange rate at the time of assessment. Exchange rate movements between application and assessment can push the total above or below the threshold. Holding a buffer of 10–20% above the minimum in each stream is prudent.

For countries with capital controls (China, India, South Africa, among others), the applicant must demonstrate not only that the assets exist but that they can be transferred to Australia. A letter from the relevant bank or financial institution confirming the ability to make international transfers, or evidence that previous international transfers have been completed, helps address this concern.

Assets held through complex corporate structures (trusts, holding companies, multi-layered entities) require additional documentation to establish the applicant's beneficial ownership and the accessibility of the assets. Independent legal opinions or accountant's reports may be needed.

Independent valuations and audits

The department may commission its own independent assessments of the applicant's declared assets, particularly for high-value applications. This is separate from any valuations the applicant provides and may involve Australian-based valuation firms assessing overseas assets.

Applicants should ensure that their own valuations are conducted by qualified, independent valuers — not by parties related to the applicant or their business. Valuations from internationally recognised firms carry more weight than those from local or unrecognised firms.

Audited financial statements must be prepared by a qualified auditor recognised in the relevant jurisdiction. For businesses in countries where auditing standards may not align with international norms, applicants may need to provide additional evidence or have the accounts re-audited by a firm using International Standards on Auditing (ISA).

Pathway to permanent residency and ongoing financial obligations

The 188 visa is a provisional (temporary) visa. To transition to permanent residency (subclass 888), the applicant must meet additional requirements depending on their stream.

Business Innovation stream holders must demonstrate they have been actively managing a business in Australia with at least AUD 600,000 in annual turnover. Investor stream holders must maintain their AUD 2.5 million designated investment for the full four-year period. SIV holders must maintain their AUD 5 million complying investment for four years.

These ongoing financial requirements mean the applicant's financial obligations do not end when the provisional visa is granted — they continue for the full four-year period and are reassessed when the permanent visa is applied for.

Given the financial complexity and the amounts involved, applicants for any stream of the 188 visa should work with a registered migration agent experienced in business visas and a qualified accountant or financial adviser familiar with cross-border asset documentation. The cost of professional advice is small relative to the investment at stake.

Can the AUD 5 million SIV investment include residential property?

No. The complying investment framework specifically excludes direct investment in residential real estate. The balancing investment category allows investment in managed funds that may include Australian real property, but this refers to commercial property held through funds, not direct purchase of residential homes.

Do I need to live in Australia full-time on the 188 visa?

Residence requirements vary by stream. The Business Innovation stream generally expects the applicant to be actively managing their business in Australia, which implies substantial time in the country. The SIV has more flexible residence requirements — typically 40 days per year, or 180 days if a spouse meets the requirement on the applicant's behalf. Check the specific stream requirements.

What happens if my investment loses value during the four-year period?

If the investment loses value due to market movements (not voluntary withdrawals), the applicant is not required to top up the investment. However, voluntary withdrawals must be reinvested within 30 days. The key distinction is between market-driven losses and intentional reductions.

Can my spouse's assets count toward the net asset threshold?

Yes. The net asset calculation includes the combined business and personal assets of the applicant and their spouse or de facto partner. Both partners' assets are assessed together for the purpose of meeting the threshold.

How long does the 188 visa take to process?

Processing times vary by stream and complexity but typically range from 12 to 36 months. The SIV stream, given the involvement of fund managers and the structured investment, may have a somewhat streamlined timeline compared to the Business Innovation stream, which requires more detailed business assessment.