Funds manager and investments advisory service Atlas Advisors Australia is calling on the federal government to act quickly to reform the Business Innovation and Investment Program (BIIP) to attract higher net-worth investors to the country and offset damage done to the economy by the COVID-19 pandemic.
Guy Hedley, the executive chairman of Atlas Advisors, said the government’s objectives could be reached by redesigning the incentives to encourage higher net worth migrant investors to apply for the Significant Investor Visa, Investor Visa or the Premium Investor Visa.
“These investors have a far greater capacity and can inject more capital into the Australian economy to assist our recovery,” Mr Hedley said.
“Increasing the proportion of high-net worth migrant investors could also counterbalance the impact of falling overall immigration numbers while boosting employment and productivity and funding new innovation and industries.”
Mr Hedley said the current cap on the total number of BIIP places and the freeze on the processing of applications was thwarting millions of dollars of investment at a critical time for the economy.
In 2019-20 the BIIP was capped at 6,862 places, which makes up under six per cent of the total Skilled Migration stream of 108,682 migrants and just four per cent of Australia’s total 160,000 migrants.
READ MORE: Budget deficit to hit $184.5 billion this financial year as unemployment peaks at 9.25 per cent
“BIIP applications were supposed to reopen in July but have remained closed despite the clear economic benefits it could immediately bring,” Mr Hedley said.
“As a result, Australia risks losing millions of dollars of investment to other countries that are increasing their incentives to better compete in today’s hungry international market for investment.”