Australia's retirement-by-investment route in 2026: how Subclass 405 compares on thresholds

Subclass 405 (Investor Retirement) does not gate applicants on a single investment figure. It sets three separate ones: a net-asset floor, an annual net income floor, and a designated investment that must sit in government securities for at least four years. In the non-regional tier those three read AUD 750,000, AUD 65,000 and AUD 750,000; inside a designated regional postcode area they drop to AUD 500,000, AUD 50,000 and AUD 500,000 (cl. 405.227(2)–(3), Migration Regulations 1994, as published on the Federal Register of Legislation). New initial applications have not been accepted since 1 June 2018 — confirm the current position on the Department of Home Affairs’ official pages — so in 2026 these numbers matter most as renewal benchmarks for existing holders and as a reference point when you compare investment-residence thresholds across countries.

What are the three money gates, and why are there three?

Most investment-residence routes ask one question: how much capital will you commit? Subclass 405 asks three, and each tests something different.

• Net assets measure accumulated wealth. This is the stock you have built.
• Annual net income measures whether you can live in Australia without working. The visa is aimed at retirees, and PAM3 describes the income as “net onshore income” — overseas and Australian sources both count, but future or expected income does not.
• Designated investment measures committed capital. It is money removed from your control and placed, for a minimum four-year term, into securities specified under regulation 5.19A.

The practical effect is that an applicant cannot satisfy the route by borrowing or by holding illiquid wealth. Borrowed funds are excluded from the asset calculation, with one narrow exception: a mortgage over the applicant’s main overseas residence is not counted as a liability.

How do the regional and non-regional tiers differ?

The dividing line is the postcode where the sponsoring state or territory regional authority expects you to live, as identified in the relevant legislative instrument.

Threshold	Designated regional area	Non-regional
Net value of assets	AUD 500,000	AUD 750,000
Annual net income	AUD 50,000	AUD 65,000
Designated investment	AUD 500,000	AUD 750,000
Basis	cl. 405.227(2)	cl. 405.227(3)

Two ratios are worth noticing, because they shape how expensive the route really is. First, the designated investment equals the full asset floor in both tiers — 100% in the regional case, 100% in the non-regional case. Capital is not merely demonstrated; it is committed. Second, the income floor sits at roughly 8.7% of the asset floor outside regional areas and 10% inside them, so the regional discount is larger on stock than on flow.

For initial applicants the assets must also be “transferable to Australia”, meaning realisable rather than trapped, though they do not have to be moved before grant.

What counts toward net assets — and what quietly does not?

PAM3 sets out a narrower definition than most applicants expect. Personal net assets cover tangible, realisable items: property, traded shares and cash. Clothing, jewellery and furniture are excluded. Business net assets are added on top, calculated as total business assets minus total liabilities, multiplied by the applicant’s share, plus loans the applicant made to the business and minus loans the business made to the applicant and loans secured against personal assets.

Two traps recur in practice. The first is double counting: repaying a mortgage out of cash does not create new net value, and PAM3 advises using a single assessment date, usually within three months before application. The second is timing. Assets and income must generally have been held throughout the two years immediately before the application, with inheritance and pension or superannuation exempted (cl. 405.227(4)). Currency conversion uses the official bank buying rate on the day of application; if the rate has moved more than 5% within a year, the most favourable buying rate in that period may be used.

How much lower are the thresholds if you already hold a Subclass 405?

The renewal provisions in cl. 405.228 replace the initial test with a lighter one. There is no fresh asset floor; the focus is on what has been maintained.

Renewal threshold	Designated regional area	Non-regional
Annual net income	AUD 50,000	AUD 65,000
Maintained designated investment	AUD 250,000	AUD 500,000

Income stays identical to the initial tier, while the investment floor falls to half the asset floor in regional areas and to two-thirds of it elsewhere. Health requirements also narrow: renewal applicants are assessed against tuberculosis and public-health risk rather than the full initial health criterion, and a health undertaking can be requested.

Where an applicant cannot meet the income or investment figure because of compassionate and compelling circumstances — permanent health deterioration, the death of a spouse, unrest or disease in the home country, a market collapse affecting a pension — the note to cl. 405.228 allows a waiver, and PAM3 requires decision-makers to invite evidence of those circumstances before refusing.

What is actually locked, and for how long?

The designated investment is the part that behaves like a classic golden visa commitment. Under regulation 5.19A it takes the form of government securities, runs for at least four years (extendable to four years plus 30 days), and cannot be transferred or redeemed early. It must be held in the applicant’s name, or jointly with the spouse, in the state or territory of the sponsoring authority, and the state or territory treasury handles the transaction rather than the visa officer.

Withdrawing it early exposes the holder to cancellation under section 116 of the Migration Act 1958, though policy does not make cancellation automatic — a withdrawal driven by rising medical costs, for example, may be treated differently. Sponsorship carries the same conditional quality: if the sponsoring regional authority withdraws, the visa may be cancelled.

Mandatory conditions also attach at grant: 8501 (adequate health insurance), 8104 (work limited to 20 hours per week) and 8516 (must not change the basis on which the visa was granted). Health insurance and the public interest criteria are assessed on a “one fails, both fails” basis across the applicant and spouse.

How should a comparison shopper read these numbers?

Against single-investment programmes, 405 looks demanding: the committed capital is matched by an equal asset floor and a recurring income test, and the committed sum is frozen for four years rather than parked in property or funds. Against income-based retirement visas, it is distinctive in the opposite direction, because the investment obligation survives grant rather than ending at application.

Two qualifications matter for anyone using 405 as a benchmark in a 2026 comparison. It is a temporary visa with a four-year multiple-entry validity, not a residence-by-investment path to permanence. And the family unit must contain no dependent children or other dependants at all — a restriction with no counterpart in most investment programmes.

Treat everything above as general reference rather than advice on any individual’s circumstances. Thresholds interact with source-of-funds evidence, health insurance, character and sponsorship, and figures and availability should be confirmed against the Department of Home Affairs’ current official pages or a qualified practitioner.

Frequently Asked Questions

Is Subclass 405 still open to new applicants in 2026?

New initial applications have not been accepted since 1 June 2018, leaving renewals by existing holders as the live pathway; confirm current availability on the Department of Home Affairs’ official pages before relying on it.

What are the thresholds for retiring in a regional area?

In a designated regional postcode area, initial applicants needed net assets of at least AUD 500,000, annual net income of at least AUD 50,000 and a designated investment of at least AUD 500,000 (cl. 405.227(2)). Existing holders renewing in a regional area need AUD 50,000 in income and must maintain AUD 250,000 of designated investment (cl. 405.228).

Can the designated investment be withdrawn early?

No. It must be government securities specified under regulation 5.19A held for at least four years, and it cannot be transferred or redeemed early. Early withdrawal can trigger cancellation under section 116 of the Migration Act 1958, although cancellation is discretionary rather than mandatory.

How is the “net value” of assets calculated?

PAM3 defines it as personal net assets plus business net assets. Personal net assets include property, traded shares and cash but exclude clothing, jewellery and furniture; business net assets are business assets minus liabilities, multiplied by the applicant’s share, adjusted for loans in either direction.

Does overseas pension or superannuation income count?

Yes. The income test looks at net income available to the applicant, and government pensions, superannuation and investment returns from overseas or Australian sources are all recognised. Expected or future income is not counted.

Can dependent children be included in the application?

No. The family unit must contain no dependent children and no other dependants, including children not included in the application itself (cl. 405.221). Only a spouse or de facto partner can join, as a secondary applicant.

What happens if a renewal applicant cannot meet the income or investment figure?

The note to cl. 405.228 allows a waiver where compassionate and compelling circumstances explain the shortfall, such as serious health deterioration, the death of a spouse, upheaval in the home country or a market collapse affecting a pension. PAM3 directs decision-makers to invite evidence of those circumstances before refusing.

References

• Federal Register of Legislation — Migration Regulations 1994, Subclass 405 text