Yes, your understanding of the process so far is correct for regional areas of Australia. Where are you thinking of retiring?
Generally speaking, you will need to apply for state sponsorship in your selected state, and start preparing the extensive documentation required for the investment and proof of income part of the application. Once you have finalised your income and investment, you can then proceed to the character and health checks and visa application. Barring any health or character issues, your application will then be complete and you will be advised to pay the second Visa Application Charge (VAC) which is currently $12,990.
Due to the expense and complexity of this type of visa application, Migration Strategy recommends that you engage the services of a Registered Migration Agent (RMA) with experience in investment visas. We would be happy to recommend a reputable RMA at your request who can advise if you are indeed eligible for this visa subclass.