Physically in your current residential country but mentally running a business in the land of Aussies? Thanks to the attractive Business Innovation and Investment (Provisional) Visa 188, people with business skills can work and live in Australia for up to 5 years by operating a new or existing business there.
The 188 business visas are divided into five streams:
- Business Innovation Stream (188A)
- Investment Stream (188B)
- Significant Investor Stream (188C)
- Entrepreneur Stream (188E)
So, What Makes the Australian Visa Refusal So Common?
The Australian Business visa process is one of the most complicated visa processes as it involves numerous auditing, evaluation, and financial reports.
The Australian visa rejection can take place at 2 levels:
- The Australian state or territory government can refuse your nomination after the submission of your Expression of Interest (EOI).
- During an internal review of your visa application even after you have received a State nomination approval, the Department of Home Affairs has the right to the final decision and can also reject the application.
Top Australian Business Visa Refusal Reasons
Whether you are about to apply for the Australian Business visa or are in the midst of an appeal and review process; it is worth noting the top Business visa rejection reasons so that you can avert the same in time:
- Miscalculation of EOI Points
You must score at least 65 on the points test for obtaining a business visa. The Australian points system depends on various factors like your age, proficiency in English, qualification, business experience, business turnover, etc. For example, if your English language skills are rated as ‘superior’, you may obtain maximum points in that category.
- Absence of Bankruptcy History in Submitted Documents
Any bankruptcy experienced in the past in the matter of business or failed investments must be demonstrated to the Australian government for review. Failure of submitting historical bankruptcy proof may result in visa refusal.
- No reasonable explanation for business losses
If you experienced losses in your previous business, it needs to be shown in your application along with proof of your current business’s success and the possibility of continued growth in the future.
- Lower Turnover
Depending on the stream, the minimum requirement of the business turnover may vary. For example, the Business Innovation stream requires that the applicant must have an annual business turnover of at least AUD$750,000 for applications lodged after 1/7/2021 for a full 2 financial years. If the requirement is not met, it may lead to the rejection of your business visa.
- Less Than 2 Years of Business Ownership
According to the Australian visa requirements, you need to be the owner of the business for the last 2/4 financial years.
- No Supporting Evidence for The Turnover
If the turnover in the audit report is not supported by proper Tax Lodgement Evidence, the viability of your business may not be deemed reasonable. Lack of supporting documents is one of the most common Australian business visa rejection reasons.
- Non-involvement In the Daily Management of The Business
If the Australian authorities find out that you are not involved in the day-to-day business administration like employee management, sales management, logistics, etc., then your business visa might get rejected.
- Inactive Business
You need to prove to the authorities that your business is active by showing that the business fulfils at least 3 orders per year of which orders are relevant to the operations of your business.
- Inaccurate Ownership Documents
If the documents submitted by you such as company register, share register, or business name register are incorrect, it might pose a risk of visa refusal.
- Demonstrated Assets Are Less Than AUD 1,250,000 for all applications lodged post 1/7/2021
Your personal and business assets should be worth AUD 1,250,000 or more.
The Australian government may not consider the value of any listed property if it is not properly assessed. Therefore, it is recommended to seek professional advice to steer clear of this mistake.
- Inability to Explain Economic Sources
The Department of Home Affairs will assess the sources of funds and ownership for the legality of the applicant’s assets or operations. Therefore, you must provide relevant evidence to prove the same, for example, company history, financial documents, acquisition records, and asset valuation.
- Using The Wrong Exchange Rate
Any variation in the exchange rate may affect your total personal assets and ownership value. Therefore, it is important to always check the updated exchange rate to meet the minimum requirements.
- Miscalculation Of Net Assets and Incorrect Durations Shown
Net assets in theSALP (Statement of Assets and Liabilities Position) are essentially calculated on 3 dates – 2 at the end of each fiscal year and 1 within 3 months of the application. When calculating assets, if you fail to use the same-day balance or count the same asset twice, you may run the risk of rejection.
- Director’s Loan Discrepancy
A thorough check of your financial report will be done by the Australian immigration authority. If you ever claimed a Director’s loan, but do not show it in the balance sheet, then you may face rejection for your business visa application.
- Insufficient Proof of Claimed Property
You need to provide a supportive document such as an ownership certificate before claiming the value of a property.
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