Innovation and Investment Program
The Business Innovation and Investment Program commenced on 1 July 2012 and
introduced some key reforms including incorporation into SkillSelect and introducing
the innovation points test.
SkillSelect
SkillSelect is the new EOI skilled migration selection process that aligns the best
available prospective migration candidates with the fluctuating demands of the labour
market, or the needs of individual states or territories.
Applicants for the provisional Business Innovation and Investment visa must submit
an expression of interest (EOI) in SkillSelect and have a points-tested pass mark of
65.
A state or territory government may then invite an applicant to apply for a visa on the
basis of their EOI.
See: www.immi.gov.au/skills/skillselect/
The table below sets out the factors and points of the innovation points test.
Factor Description Points
Age 18–24 20
25–32 30
33–39 25
40–44 20
45–54 15
English language Vocational or higher 5
Proficient or higher 10
Qualifications
Australian trade certificate, Diploma or Bachelor degree or
a Bachelor degree recognised by the Minister 5
Bachelor Degree in Business, Science or Technology 10
Business experience Greater than four years business experience 10
Greater than seven years business experience 15
Investment experience Greater than four years investment experience 10
Greater than seven years investment experience 15
Financial metrics Net business and personal assets
$800 000 5
$1.3 million 15
$1.8 million 25
$2.25 million 35- 2 –
August 2012
Business turnover
$500 000 5
$1 million 15
$1.5 million 25
$2 million 35
Innovation Registered patents or registered designs 15
Evidence of trademarks 10
Evidence of joint venture agreements 5
Evidence of export trade 15
Gazelle business 10
Evidence of receipt of grants or venture capital funding 10
State or territory
nomination Special endorsement (limited places) 10
Innovation points test requirements
The innovation points test for the provisional Business Innovation and
Investment (Subclass 188) is a key component of the new program. The
points test gives points for various elements of human capital and business
innovation. The test also includes objective measures of business
performance. It aims to select innovative entrepreneurs who will transfer their
skills to Australia and diversify our existing pool of business expertise.
Under the innovation points test, points are awarded to applicants for the
following general attributes:
Age
English language ability
qualifications
experience in business or investment
net personal and business assets
business turnover
innovation.
Age
Applicants are eligible for points on the basis of the main applicant’s age at the time
of invitation.
Applicants who are aged 55 years or older may be nominated by a state or territory
government agency only if their business is of exceptional economic benefit. In this
circumstance, the applicant would not be eligible for points for their age under the
innovation points test.- 3 –
August 2012
English language ability
Applicants who can demonstrate vocational English are awarded five points. To
demonstrate vocational English, applicants must have an IELTS test score of at least
five for each of the four test components of speaking, reading, writing and listening.
Applicants who can demonstrate proficient English are eligible to be awarded ten
points. An applicant with proficient English must have an IELTS test score of at least
seven for each of the four test components of speaking, reading, writing and
listening.
Equivalent OET scores are also acceptable.
Qualifications
Applicants are awarded five points if, at the time of invitation, they have met the
requirements for a trade qualification, diploma or bachelor degree by an Australian
educational institution. Bachelor degrees from other educational institutions are also
acceptable if the Minister is satisfied the institution meets a recognised standard.
Applicants are awarded ten points if, at the time of invitation, they have met the
requirements for the award of a bachelor degree in business, science or technology
by an Australian educational institution. Bachelor degrees from other educational
institutions are also acceptable if the Minister is satisfied the institution meets a
recognised standard.
Experience in business or investment
Applicants are awarded points if they have a demonstrated history of business or
investment experience for a specified amount of time.
Points are awarded for years of business or investment experience gained in the
years immediately before the time of invitation. The experience must be relevant to
the visa stream. An applicant for the business innovation stream can only claim
points for business experience, and an applicant for the investor stream can only
claim points for investment experience.
Net personal and business assets
Net business and personal assets are mandatory threshold criteria that all applicants
must meet. Business innovation stream applicants must have net business and
personal assets of AUD800 000, and investor stream applicants must have net
business and personal assets of AUD2.25 million. Points are awarded for meeting
the minimum thresholds, and higher points will be awarded for greater levels of
assets.
Business turnover
Business innovation stream applicants must meet the business turnover requirement
of AUD500 000. There is no business turnover requirement for investor stream
applicants. - 4 –
August 2012
Points are awarded for applicants in either stream where they have an ownership
interest in one or more 'main businesses' that have a specified amount of business
turnover in at least two of the four fiscal years immediately before the time of
invitation.
Innovation
This component of the points test gives points for the following attributes. Applicants
may be awarded points for more than one item under the innovation category of the
points test, but points are awarded only once in relation to each item.
Registered patents or registered designs
o A registered patent is a set of exclusive rights granted by a national
government to an inventor or their assignee in relation to an invention,
which may be a product or a process, for a certain limited period, in
exchange for public disclosure of the invention.
o A registered design is concerned with the appearance of products if
they are new and distinctive. For example, the features of shape or
configuration which have been incorporated in the product or the
features of pattern or ornamentation applied to a product.
o Points are awarded when the applicant has had one or more patents
or designs registered at least one year before time of invitation. The
patent or design must have been used in the day–to–day activities of
the main business.
Registered trademarks
o A trademark can be a letter, number, word, phrase, sound, smell,
shape, logo, picture, aspect of packaging or any combination of these,
used to distinguish goods and services of one business from those of
another.
o Points are awarded to an applicant with one or more registered
trademarks registered at least one year before the applicant was
invited to apply for a visa. The trademark must have been used in the
day–to–day activities of the main business.
Joint venture agreements
o A joint venture is a commercial undertaking that has been entered into
by two or more parties for the purpose of a particular activity.
o Points are awarded when at least one of the main businesses in which
the applicant has held an ownership interest and participated at a
senior level in the day–to–day management of the business has
operated in a formal joint venture agreement for at least one year
before the applicant was invited to apply for a visa.
Export trade
o Points are awarded when the applicant has had an ownership interest
in one or more main businesses that derive not less than 50 per cent
of their annual turnover from export trade for at least two of the four
fiscal years immediately before the applicant was invited to apply for a
visa.
Gazelle businesses
o Gazelle businesses are newly established businesses experiencing
rapid growth during a short period of time. - 5 –
August 2012
o Points are awarded when an applicant’s main business has been
registered for no more than five years at the time of visa invitation, and
the average annualised growth in turnover has been greater than 20
per cent each year for three continuous fiscal years. The business
must also have ten or more full time employees for at least one fiscal
year in the same consecutive three-year period claimed for growth in
turnover.
Receipt of grants or venture capital funding for an innovative business idea
o A government grant is monetary assistance that was provided by a
government or a government agency, whether local or national, of the
applicant’s home country, upon specified conditions.
o Points are awarded when the applicant has received a grant of at least
AUD10 000 from a government body in the applicant's home country
within four years immediately before the applicant was invited to apply
for a visa. The grant must have been awarded for the purposes of
early-phase start-up of a business, product commercialisation,
business development or business expansion.
o Points may also be awarded when the applicant has received venture
capital funding of at least AUD100 000 within four years immediately
before the time of invitation. The grant must have been awarded for
the purposes of early-phase start-up of a business, product
commercialisation, business development or business expansion.
Special endorsement
In a limited number of cases, a nominating state or territory government may
determine that the business proposed by an applicant is of unique and important
benefit to the state or territory. In these circumstances, an applicant can be awarded
ten points.
Further information
For more information about the Business Innovation and Investment Program visit:
www.immi.gov.au/skilled/business
Further information about SkillSelect is available on the department’s website.
See: www.immi.gov.au/skills/skillselect/
