Home » Immigration – only rich retirees welcome

The newest is not always the best!

The replacement of the Retirement Visa (Subclass 410) with the Investor Retirement Visa (Subclass 405) on 1 July 2005 shone a light on one of a number of mysteries of Australian Immigration policy and practice.

Why would Australia want to restrict self-sufficient overseas retirees who bring multiple benefits to Australia? Even under the former Retirement Visa the financial resources criteria were progressively made more onerous until finally an applicant had to have minimum financial resources of $870,000.00, or $350,000 with an annual income of $52,000.00.

However, the new Investor Retirement Visa (Subclass 405) is far more onerous and indeed more complex.

The new visa requires State or Territory sponsorship, an investment of funds and it provides the option to live in non-regional or regional areas. This temporary visa clearly is for retired business and professional people with significant assets to live and invest their money in Australia at no cost to the taxpayer.

The main elements of the new visa are:

• At the time of sponsorship the retirees nominate whether they intend to settle in a regional or non-regional area.


• The place of residence determines the amount of the designated investment.


• For retirees who live in regions, there are concessions in the level of investment, of establishment costs and of annual income.

The financial requirements are:

1. Designated investment –
   • Non-regional area
     $750,000 for the initial visa of 4 years
     $500,000 for a subsequent visa
   
   
   • Regional area
     $500,000 for the initial visa
     $250,000 for a subsequent visa


2. Assets for settling in Australia –
   $750,000 in a non-regional area
   $500,000 in a regional area


3. Annual income stream –
   $65,000.00 for living in non-regional area
   $50,000.00 for living in a regional area

Two comments:

1. The new Investor Retirement Visa is clearly for people of means. Previously, the applicant had to provide evidence of financial resources; no investment was required. Many who would have been eligible for the former Retirement Visa will not be eligible for the new visa.


2. The visa will have an indirect effect on families. Overseas parents unable to meet the criteria for the parent visa, e.g. not passing the Balance of Family test, were often able to meet the former retiree visa criteria. That visa proved to be the only hope for parents who wanted to be with their children who had migrated to Australia.

The Investor Retirement Visa is restricted to retirees of wealth. Other retirees are precluded, and so are their contributions. Australia is disadvantaged by losing the benefits of these other retiree’s contributions to the community, to their families (children and grandchildren) and to the economy. Such factors are seemingly without sufficient value.

Lawyer and Registered Migration Agent Terence Ogge guides clients through the often-complex legal procedures needed to comply with Australian migration. He provides advice on all classes of temporary and permanent visas, Australia’s employment nomination scheme, business, skilled and family migration and all immigration requirements. Contact Terry Ogge by telephone: (Aus) + 61 7 5597 8888 or (UK) + 44 328 823 572