Retirement Visas for Australia
The new temporary Investor Retirement Visa (subclass 405) commenced on 1 July 2005.
The proposed visa targets retired business and professional people with significant assets who are seeking to spend some of their retirement years in and who will benefit through major investment.
The visa will require holders to be financially self-sufficient so that their presence in will be at no cost to the Australian taxpayer. The Investor Retirement visa will replace the current temporary Retirement visa (subclass 410), although people currently holding a temporary Retirement visa will continue to be able to make an application for a temporary Retirement visa.
The Investor Retirement visa is being introduced following consultations with the State and Territory Governments. The visa provides incentives to encourage persons to settle in regional / low growth areas in those States and Territories that offer sponsorship. In agreement with State and Territory governments, a two-tiered approach has been developed which will require applicants to nominate at time of sponsorship whether they intend to settle in a regional/low growth or a non-regional / non-low growth area.
The definition of regional and low growth that will be used for the Investor Retirement visa will be the same as that used for the Skilled Independent Regional Visa (SIR). Their place of intended settlement will determine the level of funds required to satisfy the financial criterion. In line with the two-tier approach, reduced thresholds will apply for the required Designated Investment (DI), establishment costs and income stream for those intending to live in regional or low growth areas.
More specifically, the visa will have the following characteristics:- for the first or initial visa application, main applicant would be55 years or older (spouse could be under 55 years of age);- for the initial and all subsequent visa applications, payment of a second visa application charge of $8,000 per person per visa application to offset the possible cost of some applicants accessing aged care / nursing home services at a future time (not refundable, regardless of whether care is utilised during the life of the visa);- for the initial and all subsequent visa applications main applicant to be sponsored by a State / Territory Government with sponsorship being maintained for the entire period of the applicant's stay in Australia;- for the initial and all subsequent visa applications, main applicant to make a minimum designated investment (DI) (depending on whether they nominate a regional / low growth area or a non-regional / non-low growth area)in a State or Territory Treasury bond of:
(a) A$750,000 for the initial visa, if the main applicant has indicated to the State or Territory Government sponsor that they are going to live in anon-regional or non-low growth area; or
(b) A$500,000 for the initial visa, if the main applicant has indicated to the State or Territory Government sponsor that they are going to live in a regional or low growth area; or
(c) A$500,000 for a second or further visa, if the main applicant has indicated to the State or Territory Government sponsor that they are going to live in a non-regional or non-low growth area; or
(d) A$250,000 for a second or further visa, if the main applicant has indicated to the State or Territory Government sponsor that they are going o live in a regional or low growth area.
In addition to the DI, and for grant of the initial visa only, main applicant to provide evidence of assets that can be used to establish a lifestyle in Australia, with those assets allowed to be combined with those of the spouse, of a minimum of: A$750,000 if the main applicant has indicated to the State or Territory Government sponsor that they are going to live in a non-regional or non-low growth area; or A$500,000 if the main applicant has indicated to the State or Territory Government sponsor that they are going to live in a regional or low growth area;- for the initial and all subsequent visa applications, the main applicant to provide evidence of an annual income stream, with that income stream allowed to be combined with income stream of their spouse, of a minimum of; $65,000 if the main applicant has indicated to the State or Territory Government sponsor that they will live in a non-regional or non-low growth area; or $50,000 if the main applicant has indicated to the State or Territory Government sponsor that they will live in a regional or low growth area.
For the initial and all subsequent visa applications, each applicant to provide evidence that they hold a private health insurance package that meets the Department of Health and Ageing guidelines (that is, the package provides cover equivalent to that provided to under Medicare) throughout their period of stay in Australia;- each applicant to have limited work rights of 20 hours per week, to allow visa holders to pursue activities such as volunteer work or investment management without breaching visa conditions;- each applicant to meet full migration health and character criteria for the first or initial visa only and to satisfy streamlined health and character for further visa applications;- each applicant must have no dependants other than a spouse; and initial maximum period of stay would be four years, renewable if applicant continues to meet criteria, for an additional four years.