Premium Investor Visa takes required offshore injection to $15 million

The Federal Government plans to introduce a new visa program, encouraging more high net worth individuals to make Australia home.

It proposes to create a new Premium Investor Visa (PIV) which offers a faster 12 month pathway to permanent residency for those who invest at least $15 million.

Changes are also being planned to the Significant Investor Visa (SIV) program which was established under the Labor government with the aim of encouraging foreign investment.

The SIV gives a pathway to permanent residency for those who invest at least $5 million in Australia for at least four years.

The PIV criteria for eligible investments are also being change so that they align with "the Government's national investment priorities".

These criteria will be determined by the Federal Government's Austrade agency in consultation with the key economic and industry portfolios.

Austrade will also become a nominating body for the SIV.

The PIV will be introduced from July 1, 2015, while the SIV changes will take place during 2014-15.

The targeted investment eligibility criteria will be determined by Austrade following consultation with key economic and industry portfolios.

It is likely the investors will quickly buy an Australian home, with fund manager Roger Montgomery suggesting property prices, at least at the high-end, could well be supported for some time yet.

"Wealthy foreigners often purchase property in Australia as an investment – a trend which has surely exacerbated house price inflation, particularly in Sydney and Melbourne," he blogged.