Australia’s investment landscape is evolving rapidly, and the term “accredited investor” is taking on fresh importance in 2025. Whether you’re aiming to access exclusive investment deals or simply want to understand how the rules are changing, knowing what it means to be an accredited investor—and the doors it opens—can be a game changer for your wealth strategy.
What Is an Accredited Investor in Australia?
In Australia, the term ‘accredited investor’ is often used interchangeably with ‘wholesale investor’. It refers to individuals or entities who meet certain income or asset thresholds, allowing them to access investment opportunities not available to the general public. These include private equity, hedge funds, and sophisticated managed funds, which are typically exempt from some of the regulatory protections designed for retail investors.
As of 2025, the Australian Securities and Investments Commission (ASIC) continues to define a wholesale (or accredited) investor as someone who:
- Has earned at least $250,000 in pre-tax income in each of the past two financial years, or
- Owns net assets of $2.5 million or more.
These thresholds must be certified by a qualified accountant, and ASIC has signaled ongoing reviews of these figures to ensure they keep pace with inflation and changing economic realities.
Why 2025 Is a Turning Point for Accredited Investors
Recent years have seen intense debate over whether the existing accredited investor criteria are still fit for purpose. With property prices, superannuation balances, and wages on the rise, more Australians are qualifying as wholesale investors—even if they may not fully understand the risks involved in unregulated offerings.
In early 2025, ASIC introduced a public consultation on whether to raise the income and asset thresholds for accredited status. The goal: to ensure that only truly sophisticated investors—those capable of bearing higher risks—are exposed to less-regulated products. Key points from the current policy landscape include:
- Potential threshold increases: Proposals suggest lifting the income requirement to $350,000 per year and net assets to $3.5 million, to reflect contemporary financial realities.
- Enhanced disclosure: Unregulated product issuers may soon face new requirements to provide clearer, more detailed risk disclosures to wholesale investors.
- Greater scrutiny: Financial advisers must now conduct more robust assessments before recommending wholesale-only products, ensuring suitability and comprehension.
These shifts signal a move to balance investment innovation with consumer protection—something every aspiring accredited investor should keep top of mind.
Opportunities and Risks for Accredited Investors
Becoming an accredited investor comes with a suite of exclusive opportunities, but also a higher duty of care. Here’s what’s on offer—and what to watch out for:
- Access to unlisted investments: Accredited status opens the door to private equity, venture capital, hedge funds, and direct property syndicates, often with the potential for outsized returns.
- Fewer regulatory protections: Wholesale investors waive certain consumer safeguards, such as cooling-off periods, detailed product disclosure statements (PDS), and access to the Australian Financial Complaints Authority (AFCA) for dispute resolution.
- Complexity and illiquidity: Many wholesale-only investments are complex, illiquid, and difficult to value—making it crucial to perform robust due diligence or seek expert advice.
- Real-world example (2025): In late 2024, several high-profile unlisted property funds faced liquidity crises, prompting renewed ASIC warnings about the risks of wholesale-only investment vehicles.
While the opportunity to diversify and grow wealth is real, the risks are equally significant. Accredited investors must be proactive in understanding every aspect of their investment decisions.
How to Become an Accredited Investor in 2025
Interested in qualifying as an accredited (wholesale) investor? Here’s the current process in Australia:
- Obtain an accountant’s certificate: Engage a qualified accountant to verify your income or net assets meet the ASIC thresholds. The certificate is valid for two years.
- Provide the certificate to investment issuers: Whenever you wish to access a wholesale-only product, you’ll need to supply a current certificate.
- Stay up to date: With ASIC reviewing the thresholds in 2025, be ready for possible changes to the income and asset requirements in the near future.
Remember, the benefits of accredited status are meaningful, but so is the responsibility to stay informed and vigilant in your investment choices.
