1/7/15
From 1 July 2015, new SIV applicants will be required to invest at least $5 million in complying investments, which must include:
- at least $500,000 in eligible Australian venture capital or growth private equity fund(s) investing in start-up and small private companies. The Government expects to increase this to $1 million for new applications within two years as the market responds;
- at least $1.5 million in an eligible managed fund(s) or Listed Investment Companies (LICs) that invest in emerging companies listed on the Australian Securities Exchange (ASX); and
- a ‘balancing investment’ of up to $3 million in managed fund(s) or LICs that invest in a combination of eligible assets that include other ASX listed companies, eligible corporate bonds or notes, annuities and real property (subject to a 10% limit on residential real estate).
Direct investment in residential real estate has never been a complying investment for SIV and this will not change. Indirect investment in residential real estate through managed funds will now be restricted.