ASFA welcomes innovation investors
The Association of Superannuation Funds of Australia (ASFA) has welcomed the Government's decision to encourage innovation by allowing a new visa class for foreign investors.
ASFA said the Significant Investor visa would benefit superannuation fund members in the long run as they are long-term investors in the Australian economy.
The reforms aim to encourage business investors with a history of innovation to migrate to Australia and invest in innovation.
"Creating a sustainable and growing innovation market, including increased depth and liquidity of Australia's venture capital market, is in the interests of superannuation fund members who will benefit from the diversification of investment opportunities and through enhanced long-term risk-adjusted investment returns," ASFA said.
ASFA said companies that innovate - mainly unlisted venture capital funds and companies listed on the ASX - have an important role to play in a diversified portfolio.
Because super funds invest across a variety of asset classes to create a diversified portfolio designed to deliver long-term returns, innovation in Australia is important to members, ASFA said.
The organisation said it would examine the proposal to ensure the measures will assist the Government's aim of encouraging investment into innovation, and not distort other parts of the economy.
The Government will introduce the Significant Investor visa on 1 July 2012 as the Business Innovation and Investment Program is brought in to replace the Business Skills Program.
Applicants for the Significant Investor visa must inject a minimum of at least $5 million into state or territory government bonds, Australian Securities and Investments Commission-regulated managed funds, and/or direct investment into Australian companies.
The reforms aim to increase exports and production, introduce new technology, increase competition and commercial activity, build links with international markets and spread entrepreneurship across the country.
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