The Australian federal government has announced that at least 10% of the $5 million investment requirement must be allocated to venture capital or private equity funds.

The changes will come into effect from 1st July 2015 and at least $500,000 will be needed to be invested in emerging companies.

In a more detailed look at the changes at least $1.5 million of the $5 million investment will need to be invested in eligible managed funds or listed investment companies that invest in up-and-coming companies whom are listed on the Australian Stock Exchange (aka ASX).

Generally migrants who come to Australia via the Significant Investment Visa are very risk-averse and invest in ultra-safe investment’s such as government bonds, and commercial property however this reform by the federal government is attempting to divert the investment to the start-up sector which bears a large amount of risk.

There are growing concerns that these reforms will scare away wealthy Chinese investors, who amount for the majority of these visa applications however there have been many articles over the past few days objecting the concerns, stating that the changes will not affect the current investment from China.

Although there is greater risk in investing in sectors such as venture-capital, with risk comes higher reward so it is not certain that these changes will put-off potential wealthy migrants looking to invest and live in Australia.