Glossary of Terms

Eligible business

An eligible business is one that:

• develops links with International markets
• creates or maintains employment
• exports Australia's goods and/or services
• produces goods or provides services that would otherwise be imported into Australia
• introduces new or improved technology
• adds to commercial activity and competitiveness in sectors of the Australian economy.

Designated investment

Means an investment in a security issued by an Australian State or Territory government authority which is specified by the Minister by Gazette Notice for the purposes of Investment-Linked visa subclasses. The Minister may so specify a security if and only if all of the following apply:

• an investment in the security matures in not less than 3 years from its date of issue (or 4 years for 162 and 165 holders)
• repayment of principal is guaranteed by the issuing authority
• an investment in the security cannot be transferred or redeemed before maturity except by operation of law or under other conditions acceptable to the Minister
• investment in the security is open to the general public at commercially competitive rates of return
• the Minister is satisfied that the Commonwealth will not be exposed to any liability as a result of an investment in the security by a person.

Substantial ownership interest

The term is intended to reflect the policy intention that Business Skills visa holders not obtain merely a minor financial interest in a business, but rather obtain one that is substantial, and to which is attached, as a result of the size of the interest or shareholding, a degree of control over the affairs and operations of the business.

In the case of unlisted companies the applicant would be expected to obtain a controlling share of the business. In the case of a business listed on the stock exchange, the applicant would be expected to obtain at least 10% ownership of the total share issue.