Investor Retirement (Subclass 405) in 2026: is it still open and what are the thresholds?
For new applicants the answer is no, and for existing holders it is yes. Subclass 405 (Investor Retirement) stopped taking first-time applications on 1 June 2018, so what survives in 2026 is a renewal route for people who already hold or have held the visa. The numbers that still decide those cases sit in clauses 405.227 and 405.228 of the Migration Regulations 1994, as published on the Federal Register of Legislation, and in the Department of Home Affairs PAM3 guidance for the subclass. The Federal Register publishes a continuously consolidated text, so the clause numbers quoted here should be re-read against the version in force when you act.
Is Subclass 405 still open in 2026?
It is open only as a rollover. A person whose last substantive visa was a Subclass 405 can seek a further 405; anyone without that history has no route into the subclass today. The Regulations text records no recent amendment specific to Subclass 405, which means the 2018 closure is the operative fact rather than a pending one, and a reader hoping to enter Australia through this visa for the first time will need to look at other subclasses instead.
What were the thresholds for a first Subclass 405 application?
They were set in two bands, keyed to whether the sponsoring regional authority nominates a postcode in a designated regional area. The designation matters because it moves all three figures at once — net assets, annual net income and the designated investment itself.
| Where you intend to live | Net assets (transferable) | Annual net income | Designated investment |
|---|---|---|---|
| Designated regional postcode | AUD 500,000 | AUD 50,000 | AUD 500,000 |
| Elsewhere | AUD 750,000 | AUD 65,000 | AUD 750,000 |
A first-time applicant also had to be sponsored by a state or territory appropriate regional authority, and the assets had to be legally owned, lawfully acquired, and held throughout the two years immediately before the application. Inheritance and pension or superannuation balances are carved out of that two-year holding rule.
What are the renewal thresholds for existing 405 holders?
Clause 405.228 applies reduced figures to someone whose last substantive visa was a Subclass 405. Annual net income stays at the same level, but the designated investment only has to be maintained at a lower floor.
| Where you intend to live | Annual net income | Designated investment to maintain |
|---|---|---|
| Designated regional postcode | AUD 50,000 | AUD 250,000 |
| Elsewhere | AUD 65,000 | AUD 500,000 |
The renewal case turns on continuity: the applicant must show the designated investment was held throughout the previous visa and that the income was available during that period, not merely that it can be assembled by decision time. Health screening also narrows on renewal to tuberculosis and public-health risk, sometimes with a chest X-ray or a health undertaking, rather than the full public interest criteria applied to first-time applicants.
What counts as a designated investment, and how long is it locked in?
It is a government security specified under regulation 5.19A, taken for at least four years (extendable to four years plus 30 days), non-transferable and not redeemable early. The investment can be held by the applicant alone or jointly with a spouse, and it must sit in the state or territory of the sponsoring region.
The mechanics are deliberately sequenced. A decision maker assesses every other criterion first and only then issues the invitation to invest; the applicant completes the investment, lodges Form 1031 with state treasury confirmation, and then pays the second instalment of the visa application charge and signs the declaration. Borrowed money cannot fund the investment, and PAM3 warns against circular arrangements such as using cash to repay a mortgage and then counting the same value twice.
How are net assets and annual net income actually measured?
Net value combines personal net assets with business net assets. Personal net assets are tangible realisable items — property, traded shares, cash — but not personal clothing, jewellery or furniture. Business net assets are total business assets less total liabilities, multiplied by the applicant's share, plus loans made to the business and less loans the business or its secured borrowing has made to the applicant.
Income must be net onshore income, which can include overseas and Australian sources such as government pensions, superannuation and investment returns; future income is not counted. Borrowed funds are excluded from assets, with one exception: a mortgage over the applicant's main overseas residence is not treated as a liability. PAM3 suggests a single valuation date, normally within three months before application, and converts foreign currency at the official bank buying rate on the application date, allowing the most favourable buying rate where the rate has moved more than 5% within the year.
What else does the visa demand — age, family, sponsorship and health cover?
The Regulations describe Subclass 405 applicants as typically aged 55 or over, with the precise minimum age set by Schedule 1 item 1212B(3)(d)(iii). The family unit test is severe: no dependent children and no other dependent family members, and PAM3 makes clear that a dependent child disqualifies the application even where that child is not included in it. A spouse or de facto partner can be a secondary applicant, but cannot be granted before the main applicant.
Sponsorship comes from a state or territory appropriate regional authority, and if sponsorship is withdrawn the visa may be cancelled. Private health insurance is a mandatory condition (condition 8501) with no Medicare access, and it is assessed on a "one fails, both fails" basis across the couple — the same standard applies to the health and public interest criteria. The visa granted is a four-year multiple-entry visa carrying conditions 8104 (work limited to 20 hours a week), 8501 and 8516, which requires the holder to keep meeting the basis on which the visa was granted. Renewal applications can be lodged in or outside Australia, but not at immigration clearance.
What if you fall short at renewal?
Clause 405.228 carries a note allowing the income or investment requirement to be waived for compelling and compassionate circumstances. PAM3 gives examples such as permanent health deterioration, the death of a spouse, unrest or disease in the home country, or a market collapse that has damaged a pension balance, and it directs decision makers to issue a request for evidence under section 56 before refusing on that basis.
The same logic does not extend everywhere. A failure to comply with condition 8303 is expressly excluded from the compassionate allowance, and where a designated investment is withdrawn early, section 116 gives the Department discretion to cancel — PAM3 notes cancellation is not mandatory, for instance where funds were pulled to meet rising medical costs. This article is general information about how the subclass is framed, not advice on an individual case, so decisions should be tested against the official text or a registered practitioner.
Frequently Asked Questions
Can I apply for Subclass 405 for the first time in 2026?
No. New applications closed on 1 June 2018, and the subclass now functions only as a renewal option for people whose last substantive visa was a Subclass 405. Anyone without that visa history needs to consider other subclasses.
What investment do I have to maintain at renewal?
AUD 250,000 if you will live in a designated regional postcode, or AUD 500,000 elsewhere, held as a government security specified under regulation 5.19A. Annual net income must also be at least AUD 50,000 in a regional area or AUD 65,000 elsewhere.
How long is the designated investment tied up?
At least four years, extendable to four years plus 30 days, and it cannot be transferred or redeemed early. Withdrawing it early can expose the visa to cancellation under section 116, although cancellation is not automatic.
Can my spouse or children be included?
A spouse or de facto partner can be a secondary applicant, but cannot be granted before the main applicant is. Dependent children and other dependent family members are not permitted, and one disqualifies the application even if not included in it.
What if my income dropped before I renewed?
You can argue compelling and compassionate circumstances under clause 405.228, such as permanent health decline, bereavement, or a market collapse affecting a pension. Decision makers are directed to request supporting evidence before refusing on that ground.
Is private health insurance compulsory?
Yes. Condition 8501 requires adequate private health insurance for the whole stay, and 405 holders have no Medicare access. It is assessed on a "one fails, both fails" basis, so a shortfall affecting either partner affects both.
How long is the visa granted for?
Subclass 405 is granted as a four-year multiple-entry temporary visa under clause 405.511. It carries conditions 8104, 8501 and 8516, including a 20-hour weekly work limit and an obligation to keep meeting the basis of grant.