Australia announces new retirement visa starting 1 July

30 June 2005

Australia's Minister for Immigration and Multicultural and Indigenous Affairs has approved the introduction of a new temporary Investor Retirement (subclass 405) for Australia. The regulations for the new visa have been approved by the Executive Council and the visa is set to commence on 1 July 2005. The new visa will replace the current temporary Retirement visa (subclass 410).

The new visa category is targeted at retired business and professional people that have significant assets and who want to spend some of their retirement years in Australia and who will benefit Australia through major investment. A key requirement of the visa is that holders are financially self-sufficient so that their existence in Australia comes at no cost to the Australian taxpayer.

The new visa provides incentives to encourage people 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 requires an applicant to nominate at the time of sponsorship whether they intend to settle in a regional/low growth or a non-regional/non-low growth area. The place of intended settlement will then determine the level of funds required to satisfy the financial criteria for the temporary Investor Retirement visa.