The Queensland Small Business Owners 491 Visa
A quick guide by Hammond Taylor to the Small Business Ownership pathway within the Skilled Work Regional (Provisional) visa (subclass 491) – what you need to know and how to get prepared.
The recently released Small Business Owners 491 Visa endeavours to incentivise investment in local business communities in regional areas, encourage regional residence and provide employment opportunities for local residents. The Regional Visa program offers a 5-year visa with a pathway to permanent residency, with two broad ‘streams’; (1) where the applicant is a sponsored employee, or (2) where the applicant wishes to own and operate a small business.
Whilst the 491 typically requires applicants to be employed by regional employers in Queensland, the small business owner pathway is deemed to be tantamount to ‘undertaking employment’, as it similarly achieves the goals of the visa. As such, there is no additional requirement for small business owners to also be employed by other regional employers.
How do you apply for the 491 visa?
The visa application process involves various stages. Specifically:
- Applicants must first submit an expression of interest (EOI) application through the 491 Nomination Scheme by the State of Queensland.
- The Queensland government will review this EOI and invite successful applicants to lodge an application, with further evidence required (see below).
- The application is additionally assessed against criteria set out by the Department of Home Affairs (DHA).
If successful in being granted a 491 visa through this pathway, provided all visa conditions are complied with, the applicant has lived in a designated regional area for at least 3 years and has a taxable income at or above $53,900.00 AUD for at least the three years, they will be eligible for permanent residency.
What are the eligibility requirements?
A preliminary requirement is that the business has to be in a designated regional area of Australia. For the purpose of this visa, all locations outside Brisbane and the Gold Coast are considered designated regional areas. Applicable postcodes include 4124 to 4125, 4133, 4183 to 4184, 4207 to 4275, 4280 to 4287, 4306 to 4498, 4507, 4517 to 4519, 4550 to 4575, 4580 to 4895.
There are two ‘sets’ of requirements imposed by the BSMQ and DHA that must be met by applicants. The BSMQ requirements form the basis of the Queensland State Nomination and are a pre-requisite.
Business Operator Requirements (BSMQ requirements)
| Requirement | Details |
| Skilled Occupation List | Have an occupation on the DHA Instrument (LIN 19/051). NOTE: The business does not have been to be related to the nominated occupation, but the business experience must still be shown. |
| Business Experience | Prior business experience or qualifications to successfully run the business (or have previously been involved in a family-run business). |
| Residency in Queensland | Resident in regional Queensland for at least the past 6 months prior to application. |
| Investment in Business | Provide evidence that you have purchased a business in regional Australia for a minimum of $100,000 (not available for start-ups or home-based businesses). All business registration details, purchase document and the day-to-day operation of the business must be in the name of the primary applicant (not a partner, spouse or dependant). |
| Operation of Business | Provide evidence that the business has been trading for a minimum of 6 months after the purchase of the business. The small business owner must be operating the business for a minimum of 35 hours per week. |
| Australian Employee | Provide evidence of employment of at least one Australian resident (working a minimum of 20 hours a week) at the time of invitation. It cannot be a family member or a subcontractor. |
| Settlement Funds | Provide evidence of sufficient settlement funds for business and family settlement. |
| Ownership Interest | Provide evidence that you hold 100% ownership of the business. |
As reiterated, after the BSMQ assesses the EOI, the types of documents required for evidence will include (but not limited to) the following. These must be submitted within 14 days of notification of an invitation to lodge an application.
- Application form
- Settlement funds declaration form
- Bank statement (personal)
- Skills assessment
- Commitment statement
- Evidence of business management
- Evidence of academic qualification
- Evidence of business ownership/registration documents (contract of sale and ABN/ACN/ASIC)
- Evidence of Australian resident employee (not a family member, or a subcontractor)
- Evidence business has been operating for 6 months (BAS statements)
- VEVO Check
- Utility bill or lease agreement
Following this, the application will be assessed generally against the DHA requirements below:
General Skilled Migrant Requirements (Home Affairs Requirements)
| Requirement | Details |
| Points Test | Have a points test result of 65 or higher, inclusive of state nomination points |
| Skills Assessment | Positive Skills Assessment in nominated occupation |
| Age | Be under 45 years of age |
| English Requirements | Minimum requirement of COMPETENT, unless a higher level is required by the assessing authority |
| Additional Documents? | Submit additional documents if invited to lodge an application for a Sc491 Visa. |
What are the pros and cons of the Small Business Ownership pathway?
The BSMQ requirements place a higher onus on prospective business owners to make sure medium to long-term investment in regional Australia is not haphazardly organised. Requirements such as 100% ownership with a minimum $100,000 purchase price and concrete evidence of source of funds are strict and do not offer much leeway. Moreover, the requirement of operating the business for 6 months prior to the application is indicative of a ‘putting the cart before the horse’ approach, which carries immense risk. The visa would require the applicant to make a sizeable capital investment in order to be eligible to apply, with no guarantee they will automatically be granted the visa. In these circumstances, applicants should seriously consider their business case in informing their business experience.
Conversely, priority processing, the longer and comparatively straightforward validity period of 5 years and the pathway to permanent residency without sponsorship or health insurance requirements can be a drawing card. It is important to note that the visa intends to ensure a genuine intention to work in a designated regional area, as opposed to relocating to metropolitan centres as an ulterior motive. By retaining and developing talent in regional Australia, economic growth can be redistributed outwards from metropolitan areas.
Conclusion
The Small Business Ownership pathway offers prospective immigrants a pathway to capitalise on their business aspirations in regional Australia; whether you’re looking to experience what living and working is like in regional Australia, or explore permanent residency options, feel free to call us and discuss your migration plans and queries with our experienced migration agents and lawyers.
Article by Rex Lee (Paralegal)