What are the 188 Visas? They are also known as the Business Innovation and Investment (Provisional) Visas. The Business Innovation and Investment (Provisional) (188 Visa) is a program designed for businesspeople and investors looking to expand their ventures into Australia. It also provides temporary and permanent residence (PR) pathways to people possessing unique business talents, or individuals who invest a certain amount of funds in Australia. 

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It is a highly sought-after visa for high-net-worth individuals and is strictly available to applicants who have been nominated by an Australian state or territory government. The Business Innovation and Investment (Provisional) (188 Visa) is divided into 5 streams, catering to the different visa needs and requirements of applicants. 

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• Business Innovation Stream 
• Investor Stream 
• Significant Investor Stream 
• Premium Investor Stream
• Entrepreneur 

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Where do inherited assets come along for this stream? As mentioned above, high-net-worth individuals will be investing a certain amount of money in another Australian business or their own, no matter the stream they qualify for. 

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Inherited assets are assets that are bequeathed to an individual by their family or loved ones who have passed away. Assets can range from cash to jewellery, antiques, real estate, stocks, bonds, etc. 

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There are certain rules for particular streams, which dictate what does or does not constitute an “asset”. 

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188B Investor Stream Visa 

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This pathway is designed for applicants who already hold investment or business experience. Apart from having net assets worth AUD $2.25 million, the applicant will have to invest AUD $1.5 million in an Australian government bond. 

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These funds must be gathered from investment or business activity. An applicant who wishes to invest with inherited funds will not be permitted to do so.

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188C Significant Investor Stream Visa 

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Amongst all 5 188 Visa pathways, the only stream that permits investment through inherited funds is the 188C Significant Investor Visa. 

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This pathway requires an applicant to hold net assets worth AUD $5 million; the funds can be sourced from the applicant’s inheritance )which can be combined with other legally-acquired funds to meet the AUD $5 million figure). The applicant will be required to provide evidence of the source of funds. 

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Acceptable income sources include gifts, bequests and inheritance - the applicant must demonstrate that these funds were lawfully acquired by them. If they fail to provide adequate evidence, their visa application will be refused. 

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The applicant will also have to provide a signed declaration that contains a description (in their own words) about the source of the funds. They will have to provide details such as how the person providing the gifts/inheritance (funds) has accumulated their funds. Documents to include as evidence include:

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• The Deed of Gift, or
• A Will, or
• Evidence of the relationship between the provider and recipient of the gift/inheritance, or 
• Transaction records showing the accumulation of assets over a certain period of time

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Verifying Ownership or Source of Funds 

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If the DHA has concerns about the ownership or source of funds an applicant is showcasing, they will inquire further into matters such as:

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• The supporting documents are not genuine, or 
• The funds were sourced through illegal activities, or  
• The funds were not sourced from eligible investments or qualifying business activities, or 
• The funds are not wholly owned by the applicant  

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If the DHA has concerns about the ownership of assets used in the initial capital investment, they will look into the matter as well. While determining the inclusion of inherited assets in an applicant’s visa application, the DHA will consider factors such as:

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• The proportion of assets (to be liquidated to fund the designated investment) that were inherited, and 
• The proportion of the applicant’s total assets that were inherited, and 
• How long ago the assets were inherited, and 
• The value that has been added to the assets since they were inherited 

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Even if an inherited asset is excluded from consideration, any returns obtained on the original value of that asset may still be included by the DHA. they will also investigate whether the applicant will satisfy either or both of the criteria below before the funds are deposited in a designated investment:

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• 1 or more qualifying businesses conducted by the applicant, the applicant’s spouse/de facto partner, or both of them together, and
• Eligible investment activities of the applicant, the applicant’s spouse/de facto partner, or both of them together

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Disclaimer: Kindly note that the information provided here does not constitute legal advice. This must solely be regarded as content that provides general immigration information and is not a substitute for professional legal advice that occurs between an immigration lawyer and a client.

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Path Migration strongly recommends readers contact certified immigration lawyers for a holistic overview of the Australian immigration system and a detailed analysis of each case.

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