From 17 November 2018 the Department of Home Affairs, will offer current Subclass 405 (Investor Retirement) as well as Subclass 410 (Retirement) visa holders ability to transition to permanent residence.
Briefly, subclass 405/410 visas are aimed at self-funded retirees who have no dependents and want to live in Australia during their retirement years. These visas enable the applicants who are 55 years or older or with a set income of AUD$65,000 per year (or AUD$50,000 per year to live in a regional area) or a set investment to reside in Australia on a temporary basis. However, both visa categories are now closed to new applicants. The new Regulations target retirees who, at the time this change was announced in the Federal Budget on 8 May 2018, held a Subclass 405 (Investor Retirement) visa or a Subclass 410 (Retirement) visa, or who did not hold a substantive visa on that date and the last substantive visa held was one of those visas. In addition, the retiree must not have held a substantive visa, other than one of those visas, since 8 May 2018.
The new legislative instrument establishes a pathway to permanently regularise the status of ageing and increasingly vulnerable long-term temporary residents, holders of Retirement (subclass 410) and Investor Retirement (subclass 405) visas (Retirees), by providing them with a pathway to obtain a permanent visa. By way of background, the Retirement visa was introduced more than 35 years ago to encourage self-supporting Retirees to bring overseas funds into the Australian economy and spend time in Australia as temporary residents at no cost to Australia’s social and welfare system.
While these arrangements resulted in the temporary entry of financially independent Retirees, this is no longer the case for many Retirees particularly since the global financial crisis and due to the ageing nature of the cohort. While the majority of Retirees are from countries with Reciprocal Health Care Agreements (RHCA) with Australia, those who applied for their Retirement visa after 1 December 1998 are ineligible for Medicare under the RHCA. The majority of Retirees have resided in Australia for a significant period with no eligibility for a permanent visa. The intent of this amendment is to address the issues associated with their temporary resident status. These include concerns about the lack of government-funded health care and social services, additional tax and duties imposed on foreigners purchasing properties and uncertainty about their future.
The permanent residence pathway provides for certain holders or former holders of temporary retirement visas to obtain permanent residence in limited circumstances. The reason for this change is a response relating to concerns about the difficulties faced by retirees, including lack of access to health and other Government and community services, and disadvantage in relation to taxation and property issues faced by 405/410 visa holders. To meet the requirements for permanent residence, an applicant must at the time of closure of this visa programme, was already a holder of a Subclass 405 (Investor Retirement) visa or a Subclass 410 (Retirement) visa. The retirees may apply for a Subclass 103 (Parent) visa or a Subclass 143 (Contributory Parent) visa. Retirees must apply in Australia, maintain adequate health insurance until the permanent visa is granted, and meet the relevant health, character and other public interest criteria for the grant of the permanent visa.
The distinction between the Subclass 103 (Parent) visa and the Subclass 143 (Contributory Parent) visa is that the Subclass 143 visa has a higher visa application charge. The higher visa application charge aims to offset part of the future cost of health care and other services. The benefit to visa applicants is that the waiting time for the grant of the Subclass 143 visa is substantially less than the waiting time for the Subclass 103 visa.
Retirees have a choice about whether to apply for the Subclass 103 (Parent) visa or the Subclass 143 (Contributory Parent) visa, or alternatively, continue living in Australia as a temporary resident on a retirement visa without applying for permanent residence.
Retirees who are able to make a valid application for a Subclass 103 (Parent) visa or a Subclass 143 (Contributory Parent) visa will have access to a bridging visa to maintain their lawful status during the processing of the parent visa application
As reported previously, Home Affairs confirmed that the following numbers of visas are available under contributory and non-contributory parent visa scheme:
In the 2018–19 Migration Programme year:
• 1 500 places have been allocated to Parent (non-contributory) visas (subclasses 103 and 804)
• 7 175 places have been allocated to Contributory Parent visas (subclasses 173/143 and subclasses 884/864).
Further information in parent visas can be found here: https://www.homeaffairs.gov.au/about/corporate/information/fact-sheets/39contributory-parent