RETIREMENT IN AUSTRALIA
Sub-Class 405 Visa
Since 1 July 2005, new visa applicants for retirement in Australia must satisfy the requirements of the Investor Retirement (Class UY) Sub-class 405 Visa.
The essential elements of the Sub-class 405 Visa are as follows:-
Ø It is a temporary entry visa only. It will not lead to permanency or to citizenship.
Ø The principal applicant must be 55 years of age or older and have no dependents, other than a spouse.
Ø There is no entitlement to coverage by Medicare or to Social Security Benefits. The applicant must hold private medical coverage for the duration of the visa.
Ø The applicant must be sponsored by a State of Territory Government Agency (this is not as difficult as it may seem) and an investment must be made (after advice from DIAC) with the sponsoring State or Territory Government Treasury Corporation.
Ø Application fees are much more expensive than under the former sub-class 410 visa. At the present time the first instalment is $185.00 but there is a second instalment which must be paid, once advised by DIAC, of $8,215.00. A further charge of $8215.00 may be applied in respect to the spouse of the principal applicant.
Ø The applicant must have no intention to take up full-time employment, but note that limited employment up to 20 hours per week is allowed.
Ø The applicant must be in good health and satisfy a character test.
Ø A spouse may be included on the visa application, regardless of age.
Financial Elements
In general terms the financial requirements from 1 July 2005 for new applicants (note that repeat applications are less onerous) are:-
¨ Where the applicant intends to live in a regional or low population growth areas (see below) -
§ The net value of the applicant’s and/or applicant’s spouse’s assets available for transfer and capable of being transferred to Australia is at least AUD$500,000.00.
§ As well, the applicant and/or the applicant’s spouse have access to an annual net income of at least AUD$50,000.00.
§ As well, the applicant and/or the applicant’s spouse have made an investment with the sponsoring State/Territory Treasury Corporation of at least AUD$500,000.00.
¨ In circumstances where the applicant doesn’t intend to live in regional or low population growth areas -
§ The nett value of the applicant’s and/or the applicant’s spouse’s assets available for transfer and capable of being transferred to Australia is at least AUD$750,000.00.
§ As well, the applicant and/or the applicant’s spouse have access to an annual net income of at least AUD$65,000.00.
§ As well, the applicant and/or the applicant’s spouse have made an investment with the sponsoring State/Territory Treasury Corporation of at least AUD$750,000.00.
¨ Note that DIAC must be satisfied that assets and income are legally owned and lawfully acquired and unless they relate to an inheritance or a superannuation or pension payment, that such assets have been held throughout the 2 years immediately prior to the application.
¨ As above, when you apply as an existing sub-class 405 visa holder, for a further visa under this sub-class the financial requirements are significantly lower, but proof of good health and health insurance will still have to be made.
You should always seek specific advice before acting. The information above is provided as a guide only. Regulations may change.
Notes on Regional and Low Population Growth Areas
Under current legislation, this includes anywhere in Australia except:-
Ö New South Wales - Sydney, Newcastle, the Central Coast and Wollongong;
Ö Queensland – Brisbane and Gold Coast;
Ö Victoria – Melbourne;
Ö Western Australia – Perth and surrounding areas.
As can be seen, there are relatively few areas defined by the regulations as non-regional and high population growth. This leaves potential investor retirement visa applicants with many choices.
Sub-Class 410 Visa
For existing retirement visa (sub-class 410) holders, application for a further sub-class 410 visa is still available. At the present time the application fee for this visa is either nil or $180.00 (depending on your circumstances) and there is no second instalment. Please note that there are no ongoing financial requirements in respect to renewals of sub-class 410 visas, but health checks are required. Health insurance may be required.
RETIREMENT IN AUSTRALIA
