Innovation points test for the Business

Innovation and Investment Program

http://www.immi.gov.au/skilled/business/_pdf/innovation-points-test.pdf

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/