New Australian Permanent Residence Options for holders of Retirement Visas
From 17 November 2018 many holders of retirement visas (the subclass 410 Retirement Visa and the subclass 405 Investor Retirement visa) will be able to apply for permanent residence in Australia.
If you, or someone you know, may be interested it would be prudent to act now and be ready to apply at first opportunity.
Eligibility
The requirements are:
Be in Australia to apply
- Have held a 405 or 410 visa on 8 May 2018* and not held any other kind of substantive visa since then.
- Meet standard health and character requirements
- Withdraw all applications you have made for parent migration (if any)
That’s all.
*To be clear, if you were first granted a retirement visa after 8 May 2018, you are not eligible for this new pathway to Australian permanent residence. Why 8 May 2018? The new pathway to permanent residence for retirees was announced by Australian Government as part of the 2018-19 Federal Budget, which was released on 8 May 2018.
Not Required
Retirees are not required to meet many of the normal rules.
No children living in Australia
- No sponsor
- Do not pass the ‘balance of family’ test
- No ‘Assurance of Support’ is required
Health Cover
You will be required to maintain your private health cover until granted permanent residence. This is a condition of your retirement visa, and any bridging visa that follows.
Medicare
You will be eligible for Medicare after Permanent Residence is granted.
3 Options
The new options are both parent migration visas. You do not need to meet all the usual requirements for the parent category visas, as explained above.
Retirees have these 3 options.
- Slow Option – subclass 103 parent migration
Time frame
Unknown, probably more than 20 years.
Cost
Single person – government lodgement charge is currently $4,035 plus credit card surcharge. The second instalment of $2,065 must be paid just prior to visa grant (at the end of the process).
Couple – government lodgement charge is currently $6,055 plus credit card surcharge. The second instalment of $4,130 must be paid just prior to visa grant (at the end of the process).
There will be additional costs for things like health checks, police clearances, documents and translations. If you have professional help you will also have to pay lawyer fees and GST.
International Travel rights
Once your retirement visa expires you will be on a bridging visa, probably for more than 20 years. Please read the information below about bridging visas and international travel rights on bridging visas. If you leave Australia without pre-arranging international travel rights while on a bridging visa you may not be allowed to return. I will be advising most of my clients not to take option 1. For most people considering this option it is probably safer to take option 3, which comes with travel rights.
Backup Option?
If it fails for any reason you can appeal, or just apply to get another retirement visa.
- Expensive Option – subclass 143 Contributory Parent migration
Time frame
About 4 years. This may change if there is high demand for this option. Processing times could be longer if queues develop.
Cost
Government charges: Single person – government lodgement charges are in two instalments. Lodgement currently costs $3,855 plus credit card surcharge. The second instalment of $43,600 must be paid just prior to visa grant (at the end of the process).
Government charges: Couple – government lodgement charges are in two instalments. Lodgement currently costs $5,155 plus credit card surcharge. The second instalment of $87,200 must be paid just prior to visa grant (at the end of the process).
Other costs – There will be additional costs for things like health checks, police clearances, documents and translations. If you have professional help you will also have to pay lawyer fees and GST.
International Travel rights
If your retirement visa expires before you are granted permanent residence you will be on a bridging visa. Please read the information below about bridging visas and international travel rights on bridging visas. If you leave Australia without pre-arranging international travel rights you may not be allowed to return.
Backup Option?
If it fails for any reason you can appeal, or just apply to get another retirement visa.
- Make No Change – Continue with your retirement visa, extending it as required. You already know what life is like on a retirement visa. There is no requirement to change. Retirement visas will continue to be available to you in the future.
Bridging Visa
If you apply for option 1 or 2 on time while in Australia you will be allowed to stay here after your current retirement visa expires, while the government is considering your application for the new visa (you will get a ‘Bridging Visa’). No extra application is necessary. The bridging visa is automatically applied for on the application form for your new visa and there is no extra cost. As long as your application for the new visa is lodged before your current visa (or allowed period of stay) expires you will receive a Bridging Visa. Your Bridging Visa only comes into effect after your current visa expires. So you ‘keep’ your current visa until then. If you leave Australia before your Bridging Visa comes into effect, you will lose it; we strongly recommend that you discuss travel plans with us before taking any action.
Anyone who applies for option 1 or option 2 ‘late’ (after their retirement visa has expired) may still have a pathway to permanent residence and a bridging visa but they may have a No Work condition imposed on them, and will not be able to get international travel rights.
International Travel while on a Bridging Visa
A Bridging Visa is granted with no travel rights. It simply permits you to remain in Australia until Immigration makes a decision on your application for a new visa.
If you need to travel before your new visa is granted we can help you make an application for a travel rights. Please contract us at least 8 weeks prior to your intended travel date.
Act Now
If you, or someone you, know is interested in this, it would be prudent to be ready to apply promptly after it opens on 17 November 2018. There will be limited places available each year. This could result in a processing queue, creating backlogs and delays.
Immigration’s website states:
“Priority will be given to those who apply under the Contributory Parent (subclass 143) category, with no allocation of Parent (subclass 103) Pathway places for grant in at least the first four years of the program. Waiting times for Parent (subclass 103) visas are significantly longer than those for Contributory Parent (subclass 143) visas.”
So, by the time Immigration starts processing these applications, in about 4 years from now, there will already be a queue.
Immigration’s website also states:
“The Department will implement the Pathway in a way that minimises the impact on the Parent and Contributory Parent visa programs. Pathway places will be gradually allocated over a number of years starting in 2018-19 and will not affect the overall number of Parent and Contributory Parent places in the annual migration program. As the number of potential Pathway applicants is small, this is not expected to have a noticeable impact on existing Parent and Contributory Parent visa applicants.”
What this means for retirees will become clearer in time. One thing is clear: if you are interested you should act now.
