Australia is still open for business

Despite the current financial troubles plaguing the world, the Australian government continues to welcome business migrants who want to move to Australia to establish and operate a new business or purchase and operate an existing business.Migration opportunities also exist for people who wish to invest in Government bonds. Australia’s states and territories are competing in a bid to sponsor business people from around the world in an effort to attract investment and suitable migrants to their cities and towns. At the same time the Australian government has been at pains to stress the importance it places on small business in Australia and has rewarded the sector with significant tax relief. On March 28 2009, the Australian government announced more than AUD720 million (SLR 23 billion) of cash-flow relief and further initiatives to support small business are expected in the May budget. Although the business world has been pessimistic about the impact of the global financial crisis, Australia has been better positioned than most countries to weather the storm. A survey conducted by the Small Business Development Corporation of small business sentiment in Western Australia has found that “there is more optimism within the small business sector than media reports would have us believe”, SBDC Managing Director Mr Stephen Moir said when the survey was released. This may make it a good time for potential business migrants to consider a move to Australia. Many business people from around the world have already taken advantage of the opportunities offered under Australia’s business migration programme. A total of 6565 business visas were granted in 2008, a 12.5% increase on the 2007 figure. This is about equal to the number of business visas that can be granted before July 2009 under the recently announced cap. New business visa applications are still being accepted and processed as normal and no limits have been announced for 2010. It is not clear what effect the global downturn will have on demand for these visas and whether the caps for 2009 will have an effect on processing times in the future. There would appear to be little reason for the Australian Government to place significant limits on the number of business visas in the future – business migrants create job opportunities in Australia rather than reduce them. Historically the Australian business visa programme has attracted mostly small to medium business people who are seeking better opportunities for themselves and their families in Australia. In recent years the program has attracted many applicants from countries such as the PRC, Indonesia and South Africa where there has been some political or economic instability and concern for the future. Australia’s business visa program is targeted at small business owners and senior managers who have a proven track-record of successful business in their country and who have accumulated wealth through their entrepreneurship, which can be invested in Australia. Successful business applicants need to show that their business has recorded sales of more than AUD$300,000 (LSR 27,000,000) in at least two of the past four fiscal years or that they are a senior manager in a significant business, and that they have at least AUD$250,000 (LSR 22,000,000) in personal and business assets which they are willing and able to transfer to Australia. Business migrants who are over 45 or who do not have a good command of English must be sponsored by a state or territory of Australia. Despite the global downturn, there are good business opportunities in Australia in many sectors and Australia remains very much open for business. In order to encourage business migrants to establish themselves in their area, some Australian states and territories, including Western Australia, offer incentives and assistance packages to qualifying new migrants and small business owners. Many states and territories offer discounted education for children of business migrants. A successful business visa applicant will first be granted a temporary visa for four years within which time they must relocate themselves and their families to Australia and establish their business in the sponsoring state. Provided the relevant requirements are satisfied during this time, the person can apply for a permanent visa allowing them and their family to remain in Australia indefinitely. After a time, business visa holder can apply for Australian Citizenship should they want Australian nationality. If you are thinking about migrating to Australia, the time might be now! Source  :  www.sundaytimes.lk

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The Rudd Government to tighten rules for margin lending

THE Rudd Government will give the $21 billion margin lending industry three weeks to digest a proposed overhaul of the regulatory and legislative regime.
The Minister for Corporate Law Nick Sherry will today release a draft copy of the legislation with a view to introducing it into parliament next month.

The legislation includes new national laws to regulate margin lending under a standard national regime, reports The Australian.

Margin lending is not currently regulated in Australia and is considered to have been one of the main destroyers of investor wealth as the stockmarket collapsed last year.

It cost some investors their homes as their margin lending accounts blew up, triggering margin calls many couldn’t afford to pay.

Mr Sherry said yesterday taking out equity on a family home was a key area of interest to the Government.

“One area where we have had a high level of concern has been where people have been advised to take equity out of their family home and then to use this debt to leverage into buying shares through a margin loan.

“This double-debt trap, with a home as security, is of serious concern,” he said.

“Under our new responsible margin lending laws the lender will be required to assess a person’s true loan-to-value ratio

“This means the lender can no longer assume the money brought to the table is not itself debt, a major new improvement” that would reduce the risk of people losing their homes.

Properly geared margin lending, backed by full disclosure, had a place, but the Rudd Government would not tolerate ordinary Australians being misled into grossly inappropriate margin loans that could cost a family everything they owned, including their home, he said.

Under the new laws, lenders will be regulated by the Australian Securities and Investments Commission and be required to hold an Australian Financial Services Licence, be members of low-cost external dispute bodies, clearly disclose fees and commissions before lending, and lend under a tailored margin-lending-specific set of responsible lending obligations.

Between June last year and December 30, the number of margin calls received by 205,000 Australians with margin loans increased 458 per cent, as the share market dropped 40 per cent.

http://www.news.com.au/perthnow/money/story/0,26926,25441887-5015860,00.html

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