EXPLANATORY STATEMENT
Migration Regulations 1994
AREAS FOR BUSINESS INNOVATION AND INVESTMENT (PERMANENT) VISA AND
STATE AND TERRITORY SPONSORED BUSINESS OWNER VISA
(Regulation 888.226(b)(i) and 892.213(3)(b))
- This Instrument is made under subparagraph 888.226(b)(i) and paragraph 892.213(3)(b) of Schedule 2 to the Migration Regulations 1994.
- Subparagraph 888.226(b)(i) of Schedule 2 to the Regulations provides that an applicant must reside in Australia in an area specified by the Minister in writing. Paragraph 892.213(3)(b) provides that an applicant must reside, and operate the applicant’s main business or businesses in Australia in an area specified by the Minister in an instrument in writing.
- The purpose of the Instrument is to specify areas in which an applicant must reside and operate the applicant’s main business or businesses. These areas are all regional or low population growth metropolitan areas.
- The Instrument operates to expand the operation of the current Instrument to include the new Subclass 888 (Business Innovation and Investment (Permanent)) visa. The areas specified by postcode remain unchanged.
- Consultation was undertaken before the Instrument was made with a wide range of Commonwealth Government Departments, State/Territory Government Departments, representative peak bodies for Migration Agents and the legal profession, and other relevant organisations.
- The Office of Best Practice Regulation was consulted and has advised that a Regulatory Impact Statement is not required (OBPR Reference 2011/13095).
- Under section 44 of the Legislative Instruments Act 2003 the Instrument is exempt from disallowance and therefore a Human Rights Statement of Compatibility is not required.
- The Instrument, IMMI 12/032 commences on 1 July 2012 immediately after the commencement of the Migration Amendment Regulation 2012 (No. 2).
Overview
The Migration Regulations 1994 were enacted to provide detailed provisions for the administration of Australia's migration laws. The explanatory statement for the legislative instrument F2012L01308, issued under the authority of the Migration Act 1958, clarifies that this particular instrument was introduced to address a specific problem: the need to specify areas where applicants for certain business-related visas must reside and operate their businesses. By mandating that applicants for the Areas for Business Innovation and Investment (Permanent) Visa (Subclass 888) and the State and Territory Sponsored Business Owner Visa must reside and conduct their primary business activities in designated regional or low population growth metropolitan areas, the instrument aims to encourage business development in less populated regions of Australia. The instrument was made under the authority of the Australian Parliament, ensuring its alignment with national policy objectives of balanced regional development and economic growth.
The instrument was developed following consultation with various government departments, industry representatives, and legal professionals, reflecting a collaborative approach to policy making. It came into effect on 1 July 2012, following the commencement of another related regulation. Notably, the instrument exempts itself from disallowance under section 44 of the Legislative Instruments Act 2003, and thus, a Human Rights Statement of Compatibility is not required. This measure underscores the legislative intent to streamline and efficiently implement policies aimed at fostering economic activity in under-serviced areas.
Scope and Application
The Explanatory Statement for the Migration Regulations 1994 Areas for Business Innovation and Investment (Permanent) Visa and State and Territory Sponsored Business Owner Visa (Instrument IMMI 12/032) clarifies the scope and application of the specified areas where applicants must reside and operate their businesses to be eligible for certain visas. This Instrument applies to applicants for the Subclass 888 (Business Innovation and Investment (Permanent)) visa and the State and Territory Sponsored Business Owner visa, as outlined in the Regulations. It mandates that applicants must reside and conduct their main business operations in designated areas, which are predominantly regional or low population growth metropolitan areas. These areas are identified by specific postcodes and have remained consistent with those previously specified. The Instrument is designed to encourage business development and investment in less populated regions of Australia. The regulatory process involved consultation with various government departments, industry representatives, and relevant organisations. Notably, the Instrument is exempt from disallowance under section 44 of the Legislative Instruments Act 2003, and a Regulatory Impact Statement was deemed unnecessary by the Office of Best Practice Regulation.
Key Provisions
The Migration Regulations 1994, particularly under subparagraph 888.226(b)(i) and paragraph 892.213(3)(b), establish specific requirements for applicants seeking the Areas for Business Innovation and Investment (Permanent) Visa and the State and Territory Sponsored Business Owner Visa. These applicants must reside in Australia in areas specified by the Minister in writing, which are designated as regional or low population growth metropolitan areas. This stipulation is to ensure that applicants are living and operating their main businesses in regions that need increased innovation and investment. The specific areas are identified by postcode, and these postcodes remain consistent with previous regulations.
The obligations imposed by these sections are clear: applicants for the specified visas must demonstrate their residence and business operations in the designated areas. This requirement is intended to support the development of underrepresented regions by encouraging business activity and innovation in those areas. By situating businesses in these regions, the regulations aim to stimulate economic growth and job creation outside of major metropolitan centres.
Failure to comply with the residency and business operation requirements can lead to various consequences. The primary concern is the potential refusal or cancellation of the visa application. Additionally, if an applicant is already holding a visa and fails to meet these residency requirements, their visa may be subject to cancellation under section 101A of the Migration Act 1958. The penalties for such breaches can be significant, not only impacting the individual applicant but also potentially affecting any associated business entities. These penalties are designed to enforce compliance and ensure that the objectives of the regulations are met.