Business Innovation 888A visa FAQs

We are often asked about the investment requirement for the permanent Business Innovation visa 888A. The requirements are outlined in detail below. We’ve also provided answers to some frequently asked questions about the program.

NSW’s business investment requirement:

  • If your business is in Sydney — you must have invested at least A$500,000 in your business for at least the last 12 months.
  • If your business is in Regional NSW — you must have invested at least A$300,000 in your business for at least the last 12 months.

The business investment must be in property, plant and equipment, inventory, or purchased goodwill.

What counts as business investment?

What counts:

  • The assets outlined above can be considered towards the business investment requirement.

What doesn’t count:

  • Other assets, such as cash assets, do not count towards the business investment requirement.
  • Paid up capital does not count towards the business investment requirement.
  • Operating costs that appear on the profit and loss statement do not count towards the business investment requirement.

How do I demonstrate this investment?

Investment into eligible assets must have been made at least 12 months prior to applying for NSW nomination for the permanent 888A visa. You must demonstrate that the investment has been held until the time of application.

To assess this we will look at the most recent financial statements, such as the balance sheet, when you apply for NSW nomination for the permanent 888A visa.

Investment in property, plant and equipment and/or inventory that is not in the business’ financial statements and not used for the ongoing operations of the business will not be counted towards the business investment requirement.

What if the value of the fixed asset I have invested in has appreciated or depreciated?

We will assess the cost price/purchase amount of the fixed asset.

How do I demonstrate my investment in inventory?

The amount of inventory in the balance sheet of the most recent financial documents at the time of application will be counted towards the business investment requirement.

What if I have bought an existing business?

If you have bought an existing business, the existing plant and equipment as outlined in the contract of sale for the business will not be counted towards the business investment requirement.

Only new investment in plant and equipment after you have purchased the business will be counted towards this requirement. This can be seen in the depreciation schedule for the relevant assets that demonstrates the cost price/purchase amount of the assets and the date the assets were purchased.

How do I demonstrate purchased goodwill?

If you have purchased an existing business, the amount that has been specified for goodwill in the contract of sale for the business will count towards the business investment requirement.

If the goodwill amount in the balance sheet when you apply for NSW nomination is higher than the amount for goodwill that was in the contract of sale for the business, only the goodwill amount in the contract of sale will count towards the business investment requirement.

Does investment in property that will be sold count towards the business investment requirement?

Land that is acquired by a business whose business activities involve dealing in land (that is, land acquired for the purpose of building a dwelling or commercial property and selling the developed property) is not calculated towards the business investment requirement.

Likewise, the construction costs of developing the property for sale, as well as inventory of 'unsold properties', will not be included.

This is because this investment is not considered to be in the ongoing operations of the business, as the land and buildings will be sold for a profit.