EXPLANATORY STATEMENT

Migration Regulations 1994

AREAS FOR STATE AND TERRITORY SPONSORED BUSINESS OWNER VISA (REGULATION 892.213(3)(b))

1. This Instrument is made under paragraph 892.213(3)(b) of Schedule 2 to the Migration Regulations 1994.
2. Paragraph 892.213(3)(b) of Schedule 2 to the Regulations provides that an applicant must reside in, and operate the applicant’s main business or businesses in Australia in, an area specified by the Minister in an instrument in writing.
3. Prior to 1 July 2006 an applicant for a subclass 892 visa needed, in the 12 months immediately before the application was made, a main business(es) in Australia had an annual turnover of at least AUD200,000. Clause 892.213 of Schedule 2 to the Regulations was amended on 1 July 2006 to provide that the turnover criteria may be waived if:

a)      the applicant meets at least 2 of the requirements set out in paragraphs 892.212(a), (b) and (c); and

b)     the applicant resides in, and operates the applicant’s main business or businesses in Australia in, an area specified in an instrument in writing made by the Minister for  paragraph 892.213(3)(b); and

c)      the appropriate regional authority has determined that there are exceptional circumstances for subclause 892.213(3).

4.                  To be eligible for a waiver of the turnover criteria, an applicant must meet at least 2 of the following clause 892.212 requirements:

a)      Throughout the 12 months immediately before the application is made, the main business in Australia or main businesses in Australia, of the applicant, the applicant’s spouse, or the applicant and his or her spouse together, employed at least 1 full-time employee (or a number of part-time employers working an equivalent number of hours) who:

(i)      Is not the applicant or a member of the family unit of the applicant; and

(ii)      Is an Australian citizen, and Australian permanent resident or a New Zealand passport holder;

b)     The net value of the business and personal assets in Australia of the applicant, the applicant’s spouse, or the applicant and his or her spouse together, is, and has been throughout the 12 months immediately before the application is made, at least AUD250 000;

c)      The total value of the net assets owned by the applicant, the applicant’s spouse, or the applicant and his or her spouse together, in the main business or main businesses in Australia is, and has been throughout the 12 months immediately before the application is made, at least ASU75 000.

5.                  The Instrument specifies areas in which an applicant must reside and operate a business or businesses, in order to qualify for a waiver of the turnover requirement for the grant of a subclass 892 visa. These areas are all regional or low population growth metropolitan areas.

6.                  Consultation was undertaken before the Instrument was made as follows:

• the Regulation change under which the Instrument is made reflects the agreement reached at the May 2005 Ministerial Council of Immigration and Multicultural Affairs (MCIMA) meeting to assist States/Territories to attract and retain more business people, including in regional/low population growth areas. The specific details regarding what would constitute a regional or low population growth metropolitan area were developed in consultation with States/Territories and have been agreed by all parties. 

7. The Instrument, IMMI 06/026, commences on the day of registration on the Federal Register of Legislative Instruments.