Subclass 888 (Business Innovation Stream) Visa: Your Ultimate Guide to Permanent Residency
A comprehensive guide to the Subclass 888 (Business Innovation Stream) visa. Learn about eligibility criteria, prevention of business recycling, role swapping, COVID-19 concessions, and how to maximize your chances of success.
Introduction
Are you ready to transition from a Subclass 188 (Business Innovation) provisional visa to Australian permanent residency? The Subclass 888 (Business Innovation Stream) visa offers a clear pathway for successful entrepreneurs to make Australia their long-term home. This guide is based on the Procedural Instruction for 888 and important clauses in the so you can confidently prepare your application.
What Is the Subclass 888 (Business Innovation Stream) Visa?
The Subclass 888 (Business Innovation Stream) is a permanent visa under Business Skills (Permanent). It’s geared toward applicants who currently hold or previously held a Subclass 188 (Business Innovation) or Extension visa and have successfully operated a qualifying business in Australia.
Major Advantages of the 888 Business Innovation Stream
- Permanent Residency: Live, work, and study in Australia indefinitely.
- Pathway to Citizenship: Fulfill ongoing residency and eligibility requirements to apply for Australian citizenship.
- Business Expansion: Operate or expand your Australian business free from the limitations of a provisional visa.
- Family Inclusion: Eligible family members can be added to your application.
- Role Swapping: Transfer the primary applicant status to your spouse or de facto partner if conditions are met.
Mandatory Nomination by a State/Territory
You must retain a valid nomination from an Australian state or territory government agency. This nomination must still be in force; if it’s withdrawn, your Subclass 888 application will not be valid.
Eligibility Criteria
1. Residence Requirement
- Spend at least 1 year cumulatively in the 2 years before applying, holding a qualifying Subclass 188 or related visa.
- The Department uses the Movements Reconstruction database. If your record is incomplete, additional evidence may be needed.
2. Ownership Interest in Business
- You must have an ownership interest in up to two main businesses for at least 24 months immediately before lodging.
- You may combine periods if you sell one business and acquire another, provided minimal gap exists.
- Ownership Thresholds
- 51% if business turnover is under AUD400,000
- 30% if turnover is AUD400,000 or more
- 10% if it’s a publicly listed
- Active Role
Direct and continuous involvement in day-to-day operations and major decision-making.
2.1. Prevention of Recycling of Businesses
The nominated main business must not be acquired from another applicant or holder of 888 or a Business Skills (Residence)(Class DF) visa if that person owned the business immediately before the new applicant.
- Policy Intent: To ensure a business isn’t simply handed over from one business visa applicant to another for migration purposes, commonly referred to as “recycling” a business.
- Joint Ownership Exception: If you do purchase a business from someone who either holds or is applying for 888/DF, you must have co-owned it for at least 1 year.
- Statutory Declaration: Officers may request an Australian statutory declaration from the seller to confirm they were not an EC-888 or Class DF holder/applicant (or that co-ownership has existed).
3. Taxation Requirements
- All main businesses need a valid Australian Business Number.
- Business Activity Statements (BAS)
- Provide 2 years of BAS with a “Processed” status from the ATO.
- If no BAS is required, submit official confirmation from the Australian Taxation Office (ATO).
4. Two out of three Business Criteria
You must meet at least two of the following three criteria:
- Net Business Assets:
- Maintain a specific net value in the main business(es) over at least 12 months.
- Two Full-Time Employees:
- Employ at least 2 staff who are Australian citizens, permanent residents, or valid NZ passport holders (excluding family members).
- Net Business & Personal Assets:
- Demonstrate the required net value of combined personal and business assets in Australia over 12 months.
5. Turnover Requirement
- Annual Turnover: Generally, your main business(es) should reach AUD300,000 in revenue in the year immediately prior to your application.
- Alternative Path: If not met, see Exceptional Circumstances below.
6. Exceptional Circumstances (888.226)
- State/Territory Agency DiscretionIf your business doesn’t fully meet turnover or the ‘2 out of 3’ metrics, the nominating authority may certify exceptional circumstances if your business still provides notable economic benefits.
Role Swapping
Role swapping permits the primary applicant status to transition from the original Subclass 188 holder to their spouse or de facto partner, under these conditions:
Eligibility
The new primary applicant must fulfill all Subclass 888 Business Innovation Stream requirements (nomination, ownership, residence, etc.).
Original Visa Basis
Typically, the Subclass 188 was granted on the original applicant’s primary criteria.
Why Swap?
This is particularly useful if the spouse has been more active in running the business or if the original main applicant no longer meets certain benchmarks.
COVID-19 Concessions
During the COVID-19 concession period, some provisional visa holders (Subclass 188) who were unable to meet residence or turnover requirements might benefit from relaxed rules:
- Residence Calculation: Time spent overseas might still count if you were stuck abroad during lockdowns.
- Expired Visas: Holders whose 188 visa expired in the concession window may be able to apply for 888 within a specific timeframe.
- Check Updates: Always verify current Department of Home Affairs or Procedural Instruction bulletins.
Application Steps
7.1. Document Preparation
- 2+ years of BAS records
- ABN details for each main business
- Proof of business turnover and employees
- Financial statements covering 24 months of ownership
- Updated State/Territory nomination
- Documents for role swapping (if needed)
7.2. Fees & Second Instalment
- Base Fee: Starts around AUD3,400 for the main applicant, plus charges for each family member.
- Second Instalment: Applies if any applicant (18+) has less than functional English and never paid this charge previously (AUD4,890 for dependents, higher for main applicants if they didn’t pay it at the 188 stage).
7.3. Processing Times & Visa Grant
- Processing Duration: Depends on your application’s completeness, supporting documents, and potential additional checks.
- First Entry Date: If you’re granted the visa while outside Australia, you might get a Condition 8504 specifying an initial entry deadline.
Useful Resources & Tips
Internal Links
- Subclass 188 (Business Innovation) Visa Overview
- Australian Citizenship: Requirements & Process
External Links
- Department of Home Affairs – Subclass 888 Info
- Australian Taxation Office – BAS, ABN, etc.
Quick Tips
Start Early
Gather financials, employee records, and ABN/BAS documentation well in advance.
Confirm Nomination
Keep lines open with your state/territory agency to avoid last-minute withdrawal.
Consider Role Swapping
If your spouse is better placed to meet the criteria, swapping roles may save the application.
Address Recycling
If you bought the business from another visa holder, ensure you have the required co-ownership or declarations.
Check Concessions
If COVID-19 impacted your business operations or travel, see if concessions apply.
Frequently Asked Questions (FAQ)
What if I haven’t achieved the AUD300,000 turnover?
Your state/territory may consider exceptional circumstances if you operate in a beneficial region or niche.
Does the 1-year residence requirement need to be continuous?
No, it can be split across multiple trips, as long as you held a valid Subclass 188 (or specified) visa during each period.
How does ‘business recycling’ get prevented?
You must not acquire your nominated main business directly from another 888 or Class DF holder/applicant unless you co-owned it for at least 1 year. This policy blocks repetitive transfer for migration alone.
Who can do role swapping?
The spouse or de facto partner of the original Subclass 188 holder, provided the new applicant meets all Subclass 888 conditions.
Are COVID-19 concessions automatically applied?
Not necessarily. Check the Home Affairs site or consult a migration agent to see if you’re eligible.
Do I need 2 full years of BAS for both businesses if I had two main businesses?
Yes, you should submit BAS for whichever periods you owned each main business within those 2 years, reflecting “Processed” status at the ATO.
What if my nomination got withdrawn?
If your state/territory agency withdraws nomination, your application is invalid. You may need to re-seek nomination before lodging Subclass 888.
