The new temporary Investor Retirement Visa (subclass 405) commenced on 1 July 2005.

The proposed visa targets retired business and professional people with
significant assets who are seeking to spend some of their retirement years
in Australia and who will benefit Australia through major investment. The
visa will require holders to be financially self-sufficient so that their
presence in Australia will be at no cost to the Australian taxpayer.

The Investor Retirement visa will replace the current temporary Retirement
visa (subclass 410), although people currently holding a temporary
Retirement visa will continue to be able to make an application for a
temporary Retirement visa.

The Investor Retirement visa is being introduced following consultations
with the State and Territory Governments. The visa provides incentives to
encourage persons 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 will require applicants to nominate at time of
sponsorship whether they intend to settle in a regional/low growth or a
non-regional/non-low growth area. The definition of regional and low growth
that will be used for the Investor Retirement visa will be the same as that
used for the Skilled Independent Regional Visa (SIR). Their place of
intended settlement will determine the level of funds required to satisfy
the financial criterion. In line with the two-tier approach, reduced
thresholds will apply for the required Designated Investment (DI),
establishment costs and income stream for those intending to live in
regional or low growth areas.

More specifically, the visa will have the following characteristics:
- for the first or initial visa application, main applicant would be
55 years or older (spouse could be under 55 years of age);
- for the initial and all subsequent visa applications, payment of a
second visa application charge of $8,000 per person per visa application to
offset the possible cost of some applicants accessing aged care/nursing home
services at a future time (not refundable, regardless of whether care is
utilised during the life of the visa);
- for the initial and all subsequent visa applications main applicant
to be sponsored by a State/Territory Government with sponsorship being
maintained for the entire period of the applicant's stay in Australia;
- for the initial and all subsequent visa applications, main applicant
to make a minimum designated investment (DI) (depending on whether they
nominate a regional/low growth area or a non-regional/non-low growth area)in
a State or Territory Treasury bond of:
(a)   A$750,000 for the initial visa, if the main applicant has indicated to
the State or Territory Government sponsor that they are going to live in a
non-regional or non-low growth area; or
(b)   A$500,000 for the initial visa, if the main applicant has indicated to
the State or Territory Government sponsor that they are going to live in a
regional or low growth area; or
(c)   A$500,000 for a second or further visa, if the main applicant has
indicated to the State or Territory Government sponsor that they are going
to live in a non-regional or non-low growth area; or
(d)   A$250,000 for a second or further visa, if the main applicant has
indicated to the State or Territory Government sponsor that they are going
to live in a regional or low growth area;
- in addition to the DI, and for grant of the initial visa only, main
applicant to provide evidence of assets that can be used to establish a
lifestyle in Australia, with those assets allowed to be combined with those
of the spouse, of a minimum of:
§ A$750,000 if the main applicant has indicated to the State or
Territory Government sponsor that they are going to live in a non-regional
or non-low growth area; or
§ A$500,000 if the main applicant has indicated to the State or
Territory Government sponsor that they are going to live in a regional or
low growth area;

- for the initial and all subsequent visa applications, the main
applicant to provide evidence of an annual income stream, with that income
stream allowed to be combined with income stream of their spouse, of a
minimum of;
§ $65,000 if the main applicant has indicated to the State or
Territory Government sponsor that they will live in a non-regional or
non-low growth area; or
§ $50,000 if the main applicant has indicated to the State or
Territory Government sponsor that they will live in a regional or low growth
area.

- for the initial and all subsequent visa applications, each applicant
to provide evidence that they hold  a private health insurance package that
meets the Department of Health and Ageing guidelines (that is, the package
provides cover equivalent to that provided to under Medicare) throughout
their period of stay in Australia;
- each applicant to have limited work rights of 20 hours per week, to
allow visa holders to pursue activities such as volunteer work or investment
management without breaching visa conditions;
- each applicant to meet full migration health and character criteria
for the first or initial visa only and to satisfy streamlined health and
character for further visa applications;
- each applicant must have no dependants other than a spouse; and
initial maximum period of stay would be 4 years, renewable if applicant
continues to meet criteria, for an additional 4 years.