Update, October 2026: The thresholds described here still apply. A parliamentary committee reported on the tests in February 2025 and recommended no immediate change. Read our updated guide: You may already be a wholesale investor.

Many Australians now meet the criteria to be certified as sophisticated investors. Before you use that status, it’s worth understanding both the benefits and the risks.

In investing, sophisticated has a specific legal meaning under the Corporations Act 2001. To be certified by a qualified accountant, you generally need gross income of at least $250,000 in each of the last two financial years, or net assets of at least $2.5 million, which can include your home. Income and assets of entities you control can be counted.

When these thresholds were introduced in the early 2000s they captured far fewer households. Because they’ve never been indexed, rising house prices mean many more Australians now qualify, and the tests have come under review.

The advantages

Some investment opportunities are only available to certified investors. They can include specialised bond issues, hedge funds, private capital raisings by companies preparing to list, and mezzanine finance for property developments. Minimum investments can be large, often in the hundreds of thousands of dollars.

The risks

The same status removes protections. Issuers can offer wholesale investments without a regulated disclosure document. There’s no requirement for a prospectus, a target market determination or, where you receive personal advice, a Statement of Advice. ASIC’s rationale is that these investors are better placed to assess offers without those protections.

Access to the Australian Financial Complaints Authority may also depend on your circumstances. Expanding your opportunities also expands your exposure.

General information only. It does not take into account your objectives, financial situation or needs.