If you’re on a subclass 188 Business Innovation visa and preparing to apply for the subclass 888 permanent visa, one of the key requirements you’ll need to meet is having at least AUD $200,000 in net business assets. But what exactly counts as a business asset, and can cash in a company bank account be included? Here’s what migration and business professionals have discussed.
What Counts Towards the $200,000 Business Asset Requirement?
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The subclass 888 visa requires applicants to demonstrate that they hold at least AUD $200,000 in business net assets. This is assessed based on the company’s balance sheet — specifically, the assets minus liabilities figure.
Common business assets that can contribute to meeting this threshold include:
- Cash held in a company bank account as working capital
- Company vehicles and other physical business assets
- Equipment, inventory, and other tangible assets
- Director’s loan balances — if the director has loaned money to the company, this can form part of the asset calculation
Can Cash at Bank Be Counted as a Business Asset?
Yes — cash held in a company bank account as working capital is generally recognised as an eligible business asset for the purposes of the subclass 888 visa. This includes funds used for day-to-day business operations such as salaries, marketing expenses, and other operating costs.
Migration professionals confirm that provided the company’s financial statements show a positive equity position and the net assets exceed AUD $200,000, the requirement would generally be considered met.
What About Goodwill?
Some applicants consider converting cash into goodwill to boost their asset figure. However, there’s an important accounting principle to be aware of: internally generated goodwill cannot be capitalised under relevant Australian accounting standards. Goodwill can only be recognised on the balance sheet in the event of a transaction such as an acquisition or merger.
This means that simply deciding to record goodwill on your balance sheet without an actual business transaction will not be accepted. It’s better to focus on demonstrating legitimate business assets such as cash, equipment, vehicles, and other tangible assets.
How Is the Requirement Assessed?
To demonstrate that you meet the $200,000 business asset requirement, you’ll typically need to provide:
- Company financial statements prepared by your accountant
- Balance sheet showing assets minus liabilities
- Director’s loan balance confirmation (if applicable)
- Bank statements showing company cash holdings
The key figure DHA will look at is whether the company maintains a positive equity position with net assets exceeding the $200,000 threshold.
Key Takeaways
- Cash held in a company bank account as working capital can count towards the $200,000 business asset requirement.
- The assessment is based on the company’s balance sheet — assets minus liabilities.
- Internally generated goodwill cannot be capitalised under Australian accounting standards.
- Director’s loan balances can contribute to meeting the threshold if the company maintains positive equity.
- Work with your accountant to ensure your financial statements accurately reflect your business assets.
If you’re preparing for a subclass 888 visa application and need guidance on meeting the business asset requirements, we can help you understand what’s needed and how to present your case effectively.
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Disclaimer: This blog post provides general information only and is current at the time of publishing. It is not intended as legal or migration advice specific to your situation. For personalised advice, please book a consultation with one of our registered migration agents.
Reviewed by VisaTasker Migration Services
MARA Registered Migration Agent · MARN 2318017
This article is written and reviewed by VisaTasker Migration Services, a MARA-registered migration agency based in Australia. As registered agents, we are bound by the Migration Agents Code of Conduct and required to provide accurate, up-to-date advice based on Australian migration legislation. Information is reviewed against the latest Department of Home Affairs policy.
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