Home » Golden years in the sun: retiring to Australia

In addition to its good health infrastructure, Australia’s moderate winters have made it an increasingly popular destination for retirees from abroad.

According to Immigration Department figures, the number of retirement visas issued over the past nine years has increased tenfold, from 240 in 1993-4 to 2,659 in 2001-02.

This is in spite of a general principle laid down by the government of attracting younger immigrants, most often with skills in demand in the Australian employment market.

Retirement visas are temporary and successful applicants are approved for an initial period of four years, renewable for a further two years.

To be approved for a retirement visa, applicants must be 55 years of age or older, and have no dependents other than a spouse.

More significantly, they must demonstrate a capacity to support themselves financially for the time they spend in Australia, as they are not entitled to government benefits and must show that they have no intention to work. There are, however, changes foreshadowed for March 2003 that will allow retirement visa holders to work for 20 hours a week.

Applicants must have sufficient capital for transfer to Australia of at least A$650,000. Alternatively, applicants may have sufficient transferable funds of least A$200,000 plus an annual income of at least A$45,000.

In both cases, the figure is lower if the applicant has a non-dependent child living permanently in Australia. (A$600,000 or A$180,000 and an annual income of A$42,000).

Because this is a large sum of money, applicants should expect to do a fair amount of legwork before coming to Australia. They should definitely consult with currency experts, who may be able to use market fluctuations to get a better exchange rate for this sum.

Given fluctuations in currency and the required movement of assets, timing the move right and getting a good exchange rate could represent a very significant sum of money. Right now, the Australian dollar is historically very low in comparison to other currencies, although it is higher than it was at the same time last year, and it is expected to rise.

Those considering a retirement visa must also consider any limitations on the mobility of their retirement funds. Although many retirement funds can be moved without too much trouble, it is prudent to make sure this is the case and to be aware of any tax implications in the home country of moving retirement funds offshore.

As with most visas, applicants must provide evidence of their good health and character by undergoing a medical examination and going through character clearances from countries in which they have lived.

Because retirement visa holders are not entitled to work in Australia and are not entitled to Australian government or medical benefits, they must also have a comprehensive health insurance provided by an Australian company.