.Making a Designated Investment
The Designated Investments offered by State/Territory Treasury
Corporations are:
- Primary0issued government securities with a maturity of
no less than 4 years from the date of purchase.
- Limited to investments of:
- A$ 750,000 if you are applying under the State/Territory
Sponsored Investor category or
- A$1,500,000 if you are applying under the Investor
category with interest paid every 6 months;
- Non-transferable and non-redeemable (that is, the
security cannot be sold to another investor or sold
back to the issuing authority before maturity)
Repayment of principal on maturity is guaranteed by the State/Territory
government issuing the security.
¡óTaxation obligations
The Australian Taxation Office
(ATO) has advised income you earn from your investment in
Australia is subject to tax under Australian taxation law.
Income earned in Australia by non-residents is subject to
10 per cent withholding tax which will be automatically deducted
from the interest earned on your Designated Investment until
you provide an Australian tax file number and evidence of
your status to the agency in which you have made your investment.
The ATO strongly advises people arriving in Australia for
the first time as business entrants to contact the ATO and
apply for a tax file number.
When and how to make a Designated Investment
To make a Designated Investment you should first contact
at least one of the State/Territory Treasury Corporations.
They will forward current information on the terms and conditions
and an investment application form and detailed instructions
on how to lodge a Designated Investment in their State/Territory.
At the initial enquiry stage, the Treasury Corporation can
only indicate the likely rate of return on a proposed investment.
The actual rate of return on your investment will be set when
you deposit your funds in the Designated Investment. Interest
rates change regularly and may differ between State/Territory
Treasury Corporation
You should not make a Designated Investment until you are
advised in writing to do so by the Australian overseas mission
or the Department of Immigration and Multicultural and Indigenous
Affairs (DIMIA) office processing your application.
Your Designated Investment must be made in time for you to
enter Australia before expiry of your health and character
clearances. Information on health and character clearances
may be obtained from the office processing your application.
Funds used to finance your Designated Investment must be
personally owned and unencumbered and must have been legally
accumulated as a result of your business and/or investment
activities.
Individual State/Territory agencies will provide advice on
procedures to transfer your funds to the Designated Investment.
The funds must be in Australian dollars.
On receiving your funds, the stick issuing authority will
send you a letter or certificate to acknowledge receipt. That
agency will also complete Part 3 of form 1031 and send it
to the Australian overseas mission/DIMIA office assessing
your application. Funds can be deposited in a Designated Investment
is made, funds cannot be withdrawn before the 4 year term
has expired, except under exceptional circumstances approved
by the Minister.
The Minister for Immigration and Multicultural and Indigenous
Affairs may cancel any visas held by you and members of your
family if the funds are withdrawn from the Designated Investment
before the date of maturity.
Disclaimer:
This information is general only. You should get investment
information from the relevant State/Territory Treasury Corporation
before selecting a Designated Investment. You should also
contact the ATO in Australia about your taxation liabilities.
The Australian Government does not accept liability for any
loss you may suffer as a result of making an investment, nor
for any taxation liability you may incur. Nor does it approve
or endorse specific Designated Investments or provide advice
on their performance.
Further requirements:
Please refer to the immigration website www.immi.gov.au/allforms/formlist.htm
for additional forms required under the Investor and State/Territory
Sponsored Investor subclass.

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