Australian Investor Retirement Visa – Subclass 405


“On 29 May 2018, the Australian Government advised that the 405 Investor Retiree visa option will no longer be available from 1st June 2018. It is therefore now closed to all fresh applications. At this stage we are unaware if the Government is planning a replacement visa subclass suitable to retirees”.

This visa is for applicants who:

  • are 55 years of age or older;
  • have no dependants (except for a partner, if relevant); and
  • who are able to meet significant income and asset requirements.

Health and character requirements also apply. In addition, all applicants are required to maintain adequate health insurance during all periods of their intended residence in Australia

The visa is a temporary visa which is usually granted for a period of 4 years. It will allow the principal applicant and his/her partner to work in Australia (should they wish to do so) for up to 40 hours per fortnight. Travel into and out of Australia during the period of the visa is not limited.

The visa requires sponsorship by an Australian State or Territory government. This isn’t as difficult as it might sound, given that a “designated investment” needs to be made before the grant of the visa, with the sponsoring State or Territory. A designated investment is an investment in a specified government bond or inscribed stock, which will mature in not less than 4 years from the date of issue. Repayment of the principal to the visa applicant is guaranteed by the issuing authority, but the investment rate of return might of course be less than what might be obtained elsewhere. If you are applying for this visa you should not make the investment before being invited to do so.

In general terms, if you are seeking to live in a regional or low population growth metropolitan area, you must show that you have assets for investment of at least AUD $500,000 available to be invested in the designated investment and in addition, have income to a minimum of AUD $50,000 net per year. If you are seeking to live in a non-regional area (at the present time this includes Sydney, Newcastle, the New South Wales Central Coast and Wollongong, Brisbane and the Gold Coast, Melbourne and Perth) these requirements increase, requiring a designated investment to a minimum of AUD $750,000 and yearly income of AUD $65,000

The visa can be renewed and in such a case, a further designated investment needs to be made and ongoing income needs to be proven. However, these amounts are reduced on renewal, to income of AUD $50,000 per year, with a designated investment of AUD $250,000 for applicants who live in a regional area. For renewing applicants who live in one of the metropolitan areas above, a designated investment of AUD $500,000 and ongoing income of AUD $65,000 per year needs to be demonstrated.


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