Business and Investment Migration
Business and investment migration has, over the past two decades, been one of Australia’s principal pathways for attracting high-net-worth applicants and entrepreneurs.
However, on 31 July 2024 the Australian Government formally closed the Business Innovation and Investment Program (BIIP, the Subclass 188/888 business and investment migration program) to new applications. This change marks a fundamental reorientation of Australia’s migration strategy.
Under the Migration Strategy 2023, the Australian Government has shifted the focus, for business-stream applicants, away from passive investment and small-to-medium business attraction towards high-end talent and strategic innovation.
The Subclass 858 National Innovation visa (NIV) introduced under this reorientation has become the new mainstream pathway for high-net-worth talent applicants. This shift directly affects three groups of applicants:
Following the closure of the BIIP, the focus of the NS Legal migration team has shifted to assisting existing Subclass 188 holders to complete the transition to a Subclass 888 permanent visa, and to pathway assessment and application assistance for high-net-worth applicants who meet the Subclass 858 NIV criteria.
This page sets out the practical issues and strategic options most commonly encountered after the program’s closure.
Holders of a current Subclass 188 provisional visa — during the four-year provisional period, all compliance requirements for the Subclass 888 transition must still be met, or the applicant may face non-extension of the visa or refusal of permanent residence;
High-net-worth applicants who had previously considered lodging a new Subclass 188 application — this pathway has closed and an alternative pathway needs to be re-assessed, including the Subclass 858 NIV, employer sponsorship (Subclass 482/186) or skilled migration;
Offshore investors monitoring Australia’s long-term investment environment — the new policy framework’s compliance requirements and business-establishment pathways need to be understood.
The Closure of BIIP
On 31 July 2024, the Department of Home Affairs, consistent with the overall reform direction of the Migration Strategy 2023, ceased accepting new applications for the Subclass 188 Business Innovation and Investment (Provisional) visa.
From that date, all sub-streams of the BIIP — including the Business Innovation stream, Investor stream, Significant Investor (SIV) stream, Premium Investor stream and Entrepreneur stream — no longer accept new applications.
The following key facts about the BIIP closure need to be clearly understood:
- The policy is to close new applications, not to revoke retrospectively: all Subclass 188 applications lodged before 31 July 2024 and still under assessment will, on the commitment of the Department of Home Affairs, continue to be processed against the existing criteria through to final decision;
- Existing Subclass 188 provisional visa holders remain valid: applicants who currently hold a Subclass 188 provisional visa can continue to remain in Australia subject to visa conditions, and can apply for the transition to a Subclass 888 permanent visa under the existing rules;
- The Subclass 888 permanent visa remains open for application: as the permanent-residence transition pathway from the Subclass 188, the Subclass 888 visa remains available to eligible Subclass 188 holders;
- There is no firm timetable for the program’s complete wind-down: the Department of Home Affairs has indicated that the relevant provisions will be gradually repealed once the backlog of Subclass 188 applications has been processed.
For applicants who are only now (after 31 July 2024) considering a business migration pathway, the BIIP is no longer an available option.
The next section reviews the structure of the BIIP prior to closure, to assist current holders and existing applicants in understanding which category they fall within.
Subclass 188 and 888 Structure
The BIIP adopts a two-stage “provisional + permanent” architecture.
The Subclass 188 is a temporary visa (generally with a four-year validity), while the Subclass 888 is the permanent visa applied for by a Subclass 188 holder after operating the business or maintaining the investment for a specified period.
Prior to the BIIP closure, the Subclass 188 included the following streams:
- Business Innovation stream (188A) — for small-to-medium business owners, requiring the applicant to hold lawful ownership of the business and to actively manage it, with turnover and net-asset thresholds at a lower level;
- Investor stream (188B) — for applicants with investment experience, requiring an investment of AUD 2.5 million into compliant investments designated by the state government, to be maintained for 4 years;
- Significant Investor stream (188C, SIV) — for ultra-high-net-worth applicants, requiring an investment of AUD 5 million into a compliant portfolio (including venture capital, emerging listed companies and balanced investments), with a lower residence requirement;
- Premium Investor stream (188D) — withdrawn at an earlier point, for the very small number of applicants investing AUD 15 million;
- Entrepreneur stream (188E) — for innovative entrepreneurs with funding support from an Australian backer.
The corresponding Subclass 888 permanent streams (888A, 888B, 888C, 888E) align one-to-one with the Subclass 188 streams.
The core conditions for transition to permanent residence differ by stream but generally include: meeting a minimum number of residence days during the Subclass 188 stage, maintaining business operations or compliant investments, and there having been no material adverse change.
The 188 to 888 Pathway
For applicants currently holding a Subclass 188 provisional visa, the most important practical question is how to complete the transition to a Subclass 888 permanent visa successfully.
While the BIIP closure does not affect the transition rights of existing holders, in practice there remain several compliance risks that need to be actively managed during the Subclass 188 stage.
The core requirements for the transition vary by stream but generally cover the following dimensions:
- Residence requirement — 188A/B applicants generally need to have accumulated at least 1 year of residence in Australia during the provisional period (typically 4 years); 188C SIV holders are subject to a residence requirement of 40 days per year (primary applicant) or 180 days (spouse) accumulated;
- Business or investment maintenance — 188A applicants need to have lawfully operated the business in Australia for 2 years (in some cases shortened to 12 months); 188B/C applicants need to continuously maintain the compliant investment over the 4-year period, with no early withdrawal;
- Meeting business operation metrics — 188A applicants need to meet quantitative metrics at the 888 stage, including turnover (generally AUD 300,000+), net assets and employee count;
- No material adverse change — covering character, health, taxation compliance and anti-money-laundering review;
- Continuation of state/territory nomination — some streams require the state or territory government to re-nominate or confirm at the 888 stage.
In practice, many Subclass 188 holders overlook compliance details during the provisional period, leading to obstacles at the 888 application stage.
Common compliance gaps include: turnover falling short of the threshold, partial early redemption of the investment portfolio, insufficient residence days, and failure to declare taxation changes in time.
Subclass 858 National Innovation visa
Following the closure of the BIIP, the Subclass 858 National Innovation visa (NIV) has become the new mainstream pathway for high-end talent in Australia.
The visa formally commenced in December 2024, replacing the previous Global Talent (Independent) visa program and absorbing some functions of the business migration channels. Key features of the Subclass 858 NIV include:
- a permanent visa, with no provisional stage — permanent residence is granted in a single step;
- no points test — the visa does not rely on a points score for age, English etc.;
- assessment is centred on “exceptional talent” or “endorsement by an Australian organisation”;
- applicants are required to demonstrate exceptional contribution or innovative capacity in one of the following priority sectors:
- critical technologies
- agri-food technology
- energy transition
- health industries
- defence capabilities
- digital economy
- advanced manufacturing
- financial services
- resources
- education
- applicants must be nominated by an eligible Australian nominator, who must be an exceptional individual, institution or organisation in the relevant field.
For high-net-worth applicants who had previously been considering the Subclass 188B/C SIV pathway, the Subclass 858 NIV is typically the most direct alternative pathway where the applicant has significant professional achievements (such as technology entrepreneurship, industry leadership, patents or significant commercial outcomes).
It should be noted, however, that the assessment standard for the Subclass 858 NIV is materially higher than under the original BIIP, and not all original Subclass 188 candidates will meet the Subclass 858 criteria.
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Global Talent Program Transition
Before the Subclass 858 NIV commenced, the high-end talent permanent pathway in Australia was the Subclass 858 Global Talent (Independent) visa (the legacy GTI program).
Under the 2024 policy adjustments, the GTI program has been formally replaced by the new Subclass 858 National Innovation visa. The key differences between the two are:
- more focused program objectives — the new NIV refines the targeted sectors from the original 10 into a clearer set of priority directions;
- stricter nomination requirements — the nominator must hold national-level or international-level standing in the field of nomination;
- adjustment of the salary threshold requirement — the legacy GTI “high-income capability indicator” (Fair Work high-income threshold) remains an assessment reference but is no longer a hard threshold;
- clearer processing sequence — the new NIV adopts an Expression of Interest (EOI) + invitation model, with an overall processing flow that is more structured.
If you have previously lodged a GTI application, the way in which the Department of Home Affairs handles the transition is a key consideration: in principle, GTI applications already lodged and still under assessment will continue to be assessed against the original criteria, but the actual processing time may be affected by the implementation of the new policy.
State and Territory Nomination Pathways
Although the federal BIIP program has closed, some state and territory governments continue to maintain a limited business nomination channel under their skilled migration programs, principally through Subclass 491 (Skilled Work Regional (Provisional)) and Subclass 190 (Skilled Nominated).
The features of these channels include:
- they are typically directed at applicants who intend to invest or operate a business substantively in the state or territory;
- investment thresholds vary by state and are generally much lower than under the original Subclass 188 program (typical range AUD 500,000 to 2,000,000);
- an EOI must be lodged via the SkillSelect system and an invitation from the state government awaited;
- the applicant must hold an appropriate skills assessment and meet the language, age, health and character requirements;
- the Subclass 491 is provisional for 5 years, with transition to Subclass 191 permanent residence available on meeting residence and income requirements; the Subclass 190 is a direct permanent visa.
In practice, the state and territory nomination channels are not a straightforward substitute for the Subclass 188.
They are more suitable for applicants with a relevant technical background who are prepared to accept the regional requirements.
For high-net-worth applicants with a purely investment focus who do not wish to take on operational or work responsibilities, the suitability of the state and territory channels is limited.
What If Your 188 Visa Expires Before 888
In practice, because the Subclass 188 provisional period is 4 years, some applicants may face a situation where the Subclass 188 is nearing expiry but the Subclass 888 application criteria have not yet been met, or where the Subclass 888 has been lodged but processing times are long and the Subclass 188 has ceased before the Subclass 888 has been granted.
Common options to address this include:
- Subclass 188 extension — where eligible, Subclass 188C SIV holders can apply to extend the Subclass 188 provisional visa by 2 years (with up to two extensions, totalling 4 additional years), in order to gain more time to meet the Subclass 888 requirements;
- Bridging visas (Bridging Visa A/B/C) — where the Subclass 888 application has already been lodged, a Bridging Visa A (BVA) will generally be granted automatically pending the outcome; where departure from Australia is required, a Bridging Visa B (BVB) should be applied for before departure;
- Business operation timer restart issue — where a Subclass 188A holder has interrupted business operations or changed the principal business during the Subclass 188 stage, the “2 years of business operation” timer at the Subclass 888 stage may need to be re-calculated;
- Alternative visa application — where the Subclass 888 transition is not feasible, an assessment can be made as to whether the applicant qualifies for an alternative pathway such as Subclass 858 NIV, employer sponsorship (Subclass 482/186) or skilled migration (Subclass 189/190/491).
We recommend beginning a systematic assessment of Subclass 888 readiness 12 months before the Subclass 188 expires, and initiating preparation of an extension or alternative visa where necessary.
Strategy for High-Net-Worth Applicants Now
Following the closure of the BIIP, high-net-worth applicants who would previously have entered Australia via the Subclass 188B/C pathway need to re-assess the viable options.
The principal alternative pathways currently available include:
- Subclass 858 National Innovation visa — suitable for applicants with exceptional contribution or industry leadership in priority sectors such as technology, finance, health and energy; the advantage is one-step permanent residence with no provisional period; the threshold is high and an eligible nomination is required;
- Subclass 482 TSS / Subclass 186 ENS employer sponsorship — suitable for executives or professionals who are prepared to work full-time in a particular Australian business; the applicant can be nominated by a company in which the applicant holds shares, but the application must satisfy compliance requirements including genuine position, market salary and the relevant occupation list;
- Subclass 189/190/491 skilled migration — suitable for applicants with a skills assessment qualification who can meet the SkillSelect points test; the link with high-net-worth status is limited and relies more heavily on occupational background;
- Partner/family migration visas — in applicable circumstances, these can serve as a supplementary channel as part of an overall family migration plan.
In practice, the optimum pathway for each high-net-worth applicant depends on the applicant’s industry background, available nomination resources, family circumstances and timing.
We recommend that, during the transition period following the BIIP closure, a fresh comprehensive pathway assessment is undertaken rather than simply applying the previous Subclass 188 logic.
Common Compliance Issues During 188 Provisional Period
The Subclass 188 provisional period is 4 years, during which the holder needs to maintain compliance across multiple dimensions. Common compliance issues encountered in practice include:
- Insufficient actual business operation — a Subclass 188A holder is named as a shareholder but has not actually participated in business management, leading to an inability to demonstrate active management at the Subclass 888 stage;
- Turnover or employee count falling short — the Subclass 888A transition requires quantitative metrics to be met, and some holders only identify the gap late in the Subclass 188 period;
- SIV portfolio non-compliant adjustment — a Subclass 188C holder has, without approval, redeemed compliant investments early or shifted between compliant categories, breaching the 4-year maintenance requirement;
- Inconsistent taxation lodgements — business income or personal taxation lodgements do not match the visa application materials, triggering additional review;
- Insufficient residence days — a Subclass 188A/B holder has not accumulated 1 year of residence within the 4 years; a Subclass 188C primary applicant has not met the 40-day-per-year requirement;
- Change in character factors — the Subclass 188 provisional period sees the applicant become involved in criminal conduct, family violence or commercial fraud, triggering s 501 risk;
- Change in health factors — the health assessment at the time of the Subclass 888 application may surface new issues due to changes in circumstances during the provisional period.
These compliance issues are difficult to address at the Subclass 888 application stage.
We recommend that Subclass 188 holders undertake periodic compliance health-checks during the provisional period to identify and rectify risks in time.
How We Help
Following the closure of the BIIP, the focus of the NS Legal business migration team has shifted systematically to assisting existing Subclass 188 holders to complete the transition to Subclass 888, and to assessing and applying for alternative pathways such as the Subclass 858 NIV for eligible high-net-worth applicants.
We typically assist clients with the following matters:
- Subclass 188 holder compliance health-check — a systematic assessment of the current Subclass 188 status, business operations, investment compliance, residence records and taxation compliance, to identify any compliance gaps before the Subclass 888 application;
- Subclass 888 permanent application preparation — coordinating the compilation and lodgement of business operation evidence, investment compliance evidence, residence records and taxation lodgements;
- Subclass 188 extension applications — assisting Subclass 188C SIV holders to assess and lodge a Subclass 188 extension;
- Subclass 858 NIV pathway assessment and application — assessing whether the applicant meets the Subclass 858 criteria, assisting in identifying an eligible nominator, and drafting the EOI and the formal application materials;
- Alternative visa pathway assessment — for high-net-worth applicants who had originally intended to pursue the BIIP channel, assessing alternative options including employer sponsorship, skilled migration and family migration;
- GTI transition issues — assisting clients with previously lodged GTI applications to address transitional processing under the new policy.
Our goal, during the BIIP policy transition period, is to provide clients with clear pathway judgement and steady execution support, so that critical time windows are not missed within compliance blind spots or policy vacuums.
Frequently Asked Questions
Following the BIIP closure, will my previously lodged Subclass 188 application still be assessed?
Yes. The Department of Home Affairs has expressly committed that all Subclass 188 applications lodged before 31 July 2024 and still under assessment will continue to be assessed against the existing criteria through to final decision. We recommend retaining all original application materials and actively responding to any follow-up requests for further information from the Department. Actual processing times may vary depending on the complexity of the matter.
I currently hold a Subclass 188 provisional visa — can I still transition to Subclass 888 permanent residence?
Yes. The BIIP closure only affects the acceptance of new applications. It does not affect the permanent residence transition rights of existing Subclass 188 provisional visa holders. You can still lodge a Subclass 888 permanent application against the Subclass 888 criteria corresponding to your Subclass 188 stream, provided all transition conditions for that stream are met (including the residence, business operation or investment maintenance requirements).
Is the Subclass 858 National Innovation visa suitable for all former Subclass 188 applicants?
No. The Subclass 858 NIV assessment standard is materially higher than under the original BIIP, requiring applicants to have exceptional contribution or industry leadership in priority sectors such as technology, health, energy and finance, and to be nominated by an eligible nominator. Former Subclass 188B/C investor-stream applicants who do not have corresponding professional achievements typically do not meet the Subclass 858 criteria. We recommend a professional assessment before deciding whether to apply.
Can Subclass 188C SIV holders apply for a Subclass 188 extension?
Yes. Where eligible, Subclass 188C SIV holders can apply to extend the Subclass 188 provisional visa by 2 years, with up to two extensions available (totalling 4 additional years). An extension application generally requires evidence of continued satisfaction of the SIV investment maintenance requirements and a reasonable basis for needing further time to meet the Subclass 888 residence requirements. The actual feasibility needs to be assessed on a case-by-case basis.
Following the BIIP closure, are there still investor-focused visa pathways available in Australia?
The federal-level purely investor-focused pathway (Subclass 188C SIV) is no longer accepting new applications. Related pathways currently available for consideration include:
- the Subclass 858 NIV (for applicants with exceptional contribution in fields such as technology and finance)
- limited business nomination channels under some state and territory programs (typically requiring substantive operation or investment)
- and employer sponsorship through a company in which the applicant holds shares (Subclass 482/186)
The pathway of pure passive investment in exchange for permanent residence has, in substance, been withdrawn.
Should I apply for the Subclass 858 NIV now, or wait for the policy to stabilise?
This depends on the particular circumstances. The Subclass 858 NIV formally commenced in December 2024 and is currently accepting EOIs and formal applications; the policy framework is reasonably stable. If you meet the Subclass 858 criteria and already have an eligible nominator, we recommend commencing the EOI process as early as possible to avoid missing the time window. The NS Legal team can help assess your readiness.
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