Australian Aged Pension

[egg]

hi folks , l rang C/L today to ask about the criteria for recieving an aged pension, re this 2 year residency ruling ,,,, l was told that any person who is an Australian citizen and has spent at least 10 years residing in Oz and at least 5 years of that continuously ,,only has to be in the country when they apply and if they wish , can leave the country before the application has been approved ,,,, it can be viewed on the C/L website ,,, the 2 year rule only applies to anyone else ,,,,,,,,l hope this helps somebody ,,,,,,,,, l dont know if this has been posted before , apoligies if it has

cheers

egg

[keith101]

you need to live in aus for a minimum of 2 years before being eligable for the age pension and the international centrelink office in hobart can give you all the information you need in regards to this matter. i have to return in 2-3 years in order to comply with these rules in order to comply and my wife is not happy

[egg]

sorry Keith ,, but that is not what l was told today ,,, you are welcome to look it up on their website ,, nowhere does it mention about an Oz citizen having to be in Oz for 2 years

[egg]

Keith , maybe you could try talking with the people that handle aged pensions and not rely so much on the ones that handle international affairs ,,, just a thought

cheers

[kevjohn]

Hi! Mods

I hope I can post this link as it may help answer some of the

questions re qualifying for OAP and the portability rule.

http://dspoverseas.proboards.com/index.cgi?board=conversation&action=display&thread=594

[oldsailor35]

i thought the family home or your home was not counted fi it was under a certain value...

Yep $280000

[oldsailor35]

I could be wrong but the way I see it is the difference in the cross rate fome any bank in Aus.

works out at more than the fees for a TT

My Bank charges $20.00 and Bangkok Bank 200bht on a transfer of $1000.00

Cross rate today at BB was 31.745 and my bank was 29.745bht so the difference wood be

20x31.745 = 634.90bht + 200bht Total 834.90bht

Difference in cross rate 2000bht so you are in front by 1365bht.

Hope this helps

Thanks for the advice KevJohn, when i go back to Brisbane in june, i will arrange for my pension to be paid into my Thai bank rather than my Commonwealth account.

oldsailer35

I'm sorrt that my reply has confused you.

I think that it is better for you to transfer A$ to you bank in Thailand than have Centrelink do it for you.

On the example above you get 2000bht more for your dollar from BB and it ony cost approx. 835bht to transfer.

That is why you are 1365bht better off.

When in Aus do check with Centrelink

Pm me and I will give you my contact Number so that you can call me if you wish

Thanks mate, yes i did get it wrong,

[sceadugenga]

Australian Working Life Residency — strengthening requirements

Department of Human Services - - .. - -

The Government will achieve savings of $50.8 million over four years by amending the Australian Working Life Residence (AWLR) rules applying to the Age Pension, from 1 January 2014. The new arrangements will strengthen Australian residency requirements and improve the equity of assessments and bring them more into line with international practice.

Under the change, Age Pension recipients who are overseas for more than 26 weeks will be paid their maximum entitlement of pension only if their AWLR is 35 years or more, rather than 25 years as applies under current arrangements. Pension recipients with less than 35 years AWLR will be paid a proportional rate. Pensioners overseas on the date of implementation will not be affected by this change unless they return to Australia for at least 26 weeks.

In addition, all partnered pensioners residing overseas will be paid based on their own AWLR rather than their partner's AWLR. Grandfathering provisions will protect existing customers who are currently being paid under an international agreement.

http://www.budget.gov.au/2012-13/content/bp2/html/bp2_expense-09.htm

Read more:

http://dspoverseas.proboards.com/index.cgi?action=display&board=conversation&thread=1234&page=1#ixzz1uHUdeUnb

[simple1]

Australian Working Life Residency — strengthening requirements

Department of Human Services - - .. - -

The Government will achieve savings of $50.8 million over four years by amending the Australian Working Life Residence (AWLR) rules applying to the Age Pension, from 1 January 2014. The new arrangements will strengthen Australian residency requirements and improve the equity of assessments and bring them more into line with international practice.

Under the change, Age Pension recipients who are overseas for more than 26 weeks will be paid their maximum entitlement of pension only if their AWLR is 35 years or more, rather than 25 years as applies under current arrangements. Pension recipients with less than 35 years AWLR will be paid a proportional rate. Pensioners overseas on the date of implementation will not be affected by this change unless they return to Australia for at least 26 weeks.

In addition, all partnered pensioners residing overseas will be paid based on their own AWLR rather than their partner's AWLR. Grandfathering provisions will protect existing customers who are currently being paid under an international agreement.

http://www.budget.go..._expense-09.htm

Read more:

http://dspoverseas.p...1#ixzz1uHUdeUnb

Bugger

[David48]

From last nights Budget as well ...

If you're a mature age worker…

Firstly, the Government is phasing out the mature age worker tax offset (MAWTO), which was designed to encourage participation. Not applicable to those who are 55 or over on 1 July 2012.

On top of that, if you have a spouse dependent, the dependency offsets have been reformed.

And, if you're planning to retire in a few years – think again. The Age Pension age for men and women will be increased by six months every two years, commencing from 1 July 2017 and reaching 67 on 1 July 2023.

For a quick snapshot how the Budget affects all of us ... http://www.heraldsun.com.au/archives/old-news-pages/federal-budget-2012-what-it-means-for-you/story-fn8mekzq-1226350517127

[sceadugenga]

Unfortunately the Hun is not a free online service any more David, I don't feel like paying to read Murdoch's view of the budget.

[David48]

Unfortunately the Hun is not a free online service any more David, I don't feel like paying to read Murdoch's view of the budget.

Agreed ... but this was free, just the best of the lot that came from a Google search.

Does it not open in Thailand (or what ever country you are in)?

[sceadugenga]

No it just asks me to log in, I used the 3 month free trial for The Australian but didn't bother to get one with the H/Sun.

I find The Age a marginally better paper anyway.

[David48]

Weird ... I got the same as well.

Then I regoogled it and it allowed me free access ... go figure.

So here is what the article said.

Might do it over a few posts for readibility ...

SO, Treasurer Wayne Swan stuck to his guns and conjured up a Budget surplus.

Here's a look at some of the key announcements that will affect you and your hip pocket:

If you are an average tax payer…

The tax-free threshold has tripled from $6000 to $18,200, reducing the tax burden on low-income earners. So, for a person earning $50,000 a year that will mean an extra $2,053 in the pocket for 2012-13.

Low-income earners (up to $37,000) will also get a boost of $500 to their Superannuation savings.

If you have children…

Throw out the shoebox of receipts, as the Education Tax Refund has been replaced by the Schoolkids Bonus - a twice-yearly payment into your bank account. Parents will receive payments of $820 a year for each teenager they have at high school, and $410 for primary students.

From 1 July 2013 the Family Tax Benefit Part A will increase for all eligible families. Families with one child will get an extra $300 a year, and an extra $600 for families with two or more children.

The Government is investing an additional $225.1 million over four years to help 130,000 Australians with childcare costs back into the workforce. Through the Jobs, Education and Training Child Care Fee Assistance it will help eligible parents on income support by paying the difference of the cost of childcare and the amount of childcare benefits they receive.

If you are an unemployed parent…

Single unemployed parents will have their parenting support payments removed when their youngest child turns eight (compared with 16 now).

At present, single mothers receive $648.50 a fortnight until their youngest child turns 16. The new plan, which comes into effect in July 2013, will end the payments when the child turns eight and shift them on to the Newstart Allowance.

For partnered parents the $442 fortnightly income support payment will now end when the youngest child turns six.

[David48]

Following on from above ...

If you are a non-resident worker…

It's all bad news. Firstly, most of you will lose the Living Away from Home Allowance (see below), and from 1 July all non-resident workers will have to pay a blanket 32.5 per cent tax rate – regardless of whether they're low income earners.

If you receive income support…

You will receive an additional yearly allowance of $210 if single and $350 per couple. This will kick in from March 2013 and applies to recipients of Youth Allowance, Newstart Allowance and Parenting Payment.

If you earn more than $300,000…

There'll be no more squirrelling money into Superannuation at the low tax rate of 15 per cent. Now very high-income earners will have to pay 30 per cent tax on Super contributions. This will impact 128,000 Australians.

Also, they're scrapping the Low Income Tax offset for non-work income of minors. So this means high-income earners can no longer dodge the ATO by income splitting with their children to avoid tax. Tut tut.

[David48]

If you're about to receive a Golden Handshake…

No more large tax concessions for generous executive salary packages as the Government targets the Employment Termination Payment offset. The tax concession will only remain for genuine redundancies or if you lose your job due to illness or disability.

If you're a mature age worker…

Firstly, the Government is phasing out the mature age worker tax offset (MAWTO), which was designed to encourage participation. Not applicable to those who are 55 or over on 1 July 2012.

On top of that, if you have a spouse dependent, the dependency offsets have been reformed.

And, if you're planning to retire in a few years – think again. The Age Pension age for men and women will be increased by six months every two years, commencing from 1 July 2017 and reaching 67 on 1 July 2023.

Edited May 8, 2012 by David48

[David48]

If you're a motorist…

The unintended incentive to drive your vehicle further than you need to in order to obtain a larger tax concession is gone. The reformed Fringe Benefits Tax treatment of cars will mean a flat rate by 1 April 2014 – no matter how far you drive.

If you're a smoker…

The days of bringing home 200 cheap cigarettes from overseas are over. You're now only allowed to bring home 50 cigarettes duty-free.

If you're a small business owner…

Unfortunately, the one per cent company tax cut that was rumoured for small businesses didn't materialise. Mr Swan blamed the Opposition for standing in his way.

Instead he pledged $3.7 billion in other small business tax breaks. From 1 July all small businesses can immediately write off each and every business asset they buy for less than $6500 and write off the first $5000 for cars or utes. Also, a single depreciation pool for assets costing $6500 or more - which should be some help.

The "loss carry-backs" system will only benefit a small percentage of Australia's 2.7 million small businesses. The new system will allow small business to offset losses made this year against profits made in previous years.

At present
, small businesses can only carry their losses forward to be offset against future income and future profits. The new scheme will be capped at $1 million of losses with a maximum benefit to any firm of $300,000. Also, the Entrepreneurs Tax Offset has been scrapped.

If you have elderly parents…

The aged care system will provide 40,000 more home care packages over the next 5 years as part of a $3.7 billion package of reforms of Australia's aged care system.

Edited May 8, 2012 by David48

[David48]

If you're a student…

$54 million has been pledged to encourage more students to study Maths and Science. The 2012 academic year has seen undergraduate places fully uncapped at all public universities for the first time driving an estimated $5.2 billion increase above previous funding levels to universities between 2010 and 2015.

If you have a disability…

The budget committed $1 billion to the 400,000 Australians living with a significant and permanent disability through the National Disability Insurance Scheme. 10,000 disabled Australians will benefit from 1 July 2013.

If you're on the public dental waiting list…

You're in luck. One of the big-spending measures in this Budget is a $515 million injection to reduce the public dental waiting list, which stands at 400,000.

If you're unemployed…

No more long overseas trips if you want to keep collecting the dole. People on welfare will have their payments stopped if they go overseas for more than 6 weeks. Before that, the cut-off was 13 weeks.

If Australia is invaded before 2030…

We're in all sorts. The Budget announced the biggest cuts to the military since the end of the Vietnam War with a massive $5.5 billion cut in Defence spending over four years.

But Mr Swan insists the nation will still have the capacity to defend itself. The cuts will also potentially mean widespread redundancies in Defence's civilian workforce.

If you receive LAFHA…

You're not laughing anymore and will have to say cheerio to the lucrative Living-Away-From-Home-Allowance.

The new reforms mean it can only be used for the expenses of people who are legitimately maintaining a second home in addition to their actual home. So, Ireland or England doesn't count as a second home for most people who are here on a working holiday and 457 visas. It was good while it lasted - sorry guys.

If you love natural therapies…

No more freebie crystal therapy or flower essences I'm afraid.

The government will crack down on taxpayers' funds being used to subsidise ''natural therapy'' services which do not present clear evidence they are clinically effective.

Services that are will be ineligible for the health insurance rebate include naturopathy, aromatherapy, ear candling, crystal therapy, flower essences, homeopathy, iridology, kinesiology, reiki and rolfing.

If you're a big business…

The big selling point of the Budget is “sharing the wealth of the mining boom”. So to that end the Government will from 1 July 2012 introduce the Minerals Resource Rent Tax, extend the Petroleum Resource Rent Tax to onshore oil and gas projects and the North West Shelf and last but not least….

…if you're impacted by the Carbon Tax (PS. that's everyone)

It will cost each household an average $9.90 a week. The Government will reimburse you $10.10. Which means everybody will be 20 cents better off a week…

THAT'S ALL FOLKS ...

Edited May 8, 2012 by David48

[Xangsamhua]

Excellent coverage. Thank you, David.

[edwinclapham]

If you're a motorist…

The unintended incentive to drive your vehicle further than you need to in order to obtain a larger tax concession is gone. The reformed Fringe Benefits Tax treatment of cars will mean a flat rate by 1 April 2014 – no matter how far you drive.

If you're a smoker…

The days of bringing home 200 cheap cigarettes from overseas are over. You're now only allowed to bring home 50 cigarettes duty-free.

If you're a small business owner…

Unfortunately, the one per cent company tax cut that was rumoured for small businesses didn't materialise. Mr Swan blamed the Opposition for standing in his way.

Instead he pledged $3.7 billion in other small business tax breaks. From 1 July all small businesses can immediately write off each and every business asset they buy for less than $6500 and write off the first $5000 for cars or utes. Also, a single depreciation pool for assets costing $6500 or more - which should be some help.

The "loss carry-backs" system will only benefit a small percentage of Australia's 2.7 million small businesses. The new system will allow small business to offset losses made this year against profits made in previous years.

At present
, small businesses can only carry their losses forward to be offset against future income and future profits. The new scheme will be capped at $1 million of losses with a maximum benefit to any firm of $300,000. Also, the Entrepreneurs Tax Offset has been scrapped.

If you have elderly parents…

The aged care system will provide 40,000 more home care packages over the next 5 years as part of a $3.7 billion package of reforms of Australia's aged care system.

David be good enough please to quote the link regarding cigarettes. I thought they cut the allowance in half which stands at 250 today. The allowance stated below was the current allowance!

Tobacco Products:

Up to 250 cigarettes, or 250 grams of cigars or tobacco products per adult (traveller 18 years or over) can be brought into Australia duty-free. All tobacco products packed in your accompanied baggage are included in this category.

Therefore 125 will be the allowance eh!

Edited May 8, 2012 by edwinclapham

[sceadugenga]

Media Releases

Tightening income support rules for Australians overseas

Date:

8/05/2012

The Australian Government is tightening the rules for people who travel overseas while receiving income support payments and family assistance.

Under the change, the amount of time individuals can travel overseas while continuing to receive their income support payments will be reduced from 13 weeks to six weeks, effective from 1 January 2013.

This change recognises that many Australians have strong family and friendship connections overseas, while ensuring that people of working age who are receiving Government payments are in Australia participating in the community and preparing to return to work if they can.

This change will affect the Disability Support Pension, Parenting Payment, Carer Payment, Carer Allowance, Widow B Pension, Wife Pension, Widow Allowance, Partner Allowance, Youth Allowance (Student), Austudy, Mobility Allowance, Telephone Allowance, Pension Supplement, Utilities Allowance, Seniors Supplement, Clean Energy Supplement, Low Income Supplement, Pharmaceutical Allowance, Rent Assistance, Pensioner Education Supplement, Family Tax Benefit Part A, Family Tax Benefit Part B, Single Income Family Supplement and Paid Parental Leave and concession cards.

Eligible students who go overseas to study as part of their full-time Australian course will continue to be paid for the duration of their overseas study.

Family Tax Benefit Part A will continue to be paid for up to three years but will reduce to the base rate at six weeks, rather than at 13 weeks under current rules.

This change doesn’t affect the Age Pension or Disability Support Pension recipients who have been assessed under new rules from 1 July 2012 as having a severe and permanent disability and no future work capacity.

The remaining income support payments (Special Benefit, Newstart Allowance, Youth Allowance (other) and Sickness Allowance) cannot generally be received overseas.

The Government will also act to bring Australia in line with other OECD countries by requiring age pensioners to have spent 35 years of their working life in Australia to be eligible to receive their full pension if they choose to retire or travel overseas for extended periods. Currently the eligibility requirement is 25 years.

Other OECD countries generally require 35 to 45 years of contributions to receive a full pension overseas. For example, France, Denmark, Japan and Canada require 40 years of pension contributions and New Zealand requires 45 years residence.

This change will apply from 1 January 2014 and will ensure that people who receive an Australian pension have lived in Australia for the majority of their working lives and contributed to the Australian economy and community.

It will continue to be the case that if an age pensioner moves or travels overseas for longer than 26 weeks that their pension is adjusted according to how many years of their working life (between age 16 and pension age) they spent in Australia.

Currently, if they were in Australia for less than 25 years of their working life, their pension is reduced. For example, if they lived here for 15 years in that period they receive 60 per cent of their full pension entitlement (15/25th).

Under the new rules, the number of years they lived in Australia during their working life will be divided by 35 years – in this example reducing their maximum payment from 60 per cent to 43 per cent (15/35th).

People who are already living overseas on 1 January 2014 will be grandfathered and able to maintain their current 25 year base for calculating their Age Pension. Only if they return to Australia for longer than six months will they be considered under the new rules.

Age pensioners paid under Social Security Agreements with Greece and New Zealand are not affected by these changes due to specific terms of these agreements.

In addition, members of a couple paid under a social security agreement outside Australia will now be paid on their own Australian working life residence rather than at the rate of their partner.

These measures will provide savings of $178 million over four years for other budget priorities.

http://www.jennymacklin.fahcsia.gov.au/mediareleases/2012/pages/budget_tightening_income_support_rules.aspx

[David48]

SMOKERS have been hit like never before, with a clampdown on duty-free cigarettes and tobacco police to enforce new plain packaging laws.

From September 1 the government will reduce the inbound duty free allowance for international travellers to 50 cigarettes or 50 grams of tobacco.

Scrapping the duty free perk will rip an extra $600 million from smokers' pockets over four years.

The measure will raise $115 million in its first year rising to $175 million by 2015.

Full Budget coverage

The move followed a call by the Heart Foundation and National Stroke Foundation.

They called for the extra revenue to be pumped into health programs aimed at preventing heart attacks and stroke.

Under existing rules, in-bound travellers aged over 18 are allowed to bring into Australia 250 cigarettes or 250g of tobacco products tax-free.

The duty free rise comes as the Government is set to increase its take in tobacco tax revenue by $60 million to more than $5.8 billion.

The tobacco industry is under assault from health care providers trying to get Australians to stop smoking and the Federal Government's determined campaign to introduce plain packaging.

Canberra will spend $3 million over the next year policing its new plain packaging laws, including snap inspections of cigarette retailers including supermarkets and tobacconists.

Beer drinkers won't escape the Budget pain, contributing an estimated $2.183 billion to Federal Government coffers over the next 12 months.

The $75 million tax revenue rise comes despite a fall in the number of Aussies enjoying a pot to the lowest level in 65 years.

Canberra is looking to steadily increase its take from the amber fluid by another $200 million by 2015.

Australian Hotels Association chief executive Brian Kearney said Australians who enjoy an ale were once again copping it in the hip pocket.

"The continuing tax grab by government directed towards drinkers whom Canberra sees as basically just a soft target is disappointing from our point of view," he said.

Mr Kearney said the bucket of money flowing from drinkers in the form of taxes was particularly disappointing, given great strides have been made in responsible alcohol consumption and the impact on drinkers' health.

"The days when Australia was top of the international drinking table are long gone," he said.

Mr Kearney was particularly critical of the twice yearly automatic tax rises applied to alcohol.

"The creeping CPI-based tax increases year by year results in the price of a pot over the bar increasing by 20c per annum," Mr Kearney said.

This is the link form the Hereld Sun ... but it seems to only work sometimes ... http://www.heraldsun.com.au/money/budget-2012-slashes-duty-free-cigarettes-taxes-beer/story-fn84gmep-1226350506372

[keith101]

anyone wishing info about this should contact international office in one of the following contacts

1 if in aus call 131673

2 if outside call +61 3 6222 2799

3 email [email protected]

hope this helps everyone in need of answers.

[edwinclapham]

Thanks David, last night they said they had halved the DF allowance. That is substantially more than half lol.

I would have comprehended it had they said they would place an extra 4 bucks on a packet but yet again the nanny state are quite prepared to accept Duty Paid Taxes on the ciggies.

Well the tourists into Australia will be thrilled! whats left of them! Australia is certainly not good value for the holiday maker.

SE Asia will always win hands down for vacations etc.

[David48]

anyone wishing info about this should contact international office in one of the following contacts

hope this helps everyone in need of answers.

keith101 ... mate, I am sure that you have important information to share here.

This is a tread about the Australian Aged Pension, but we have just covered a lot of the 2012 Federal Budget.

So which 'this' are you referring to?

[keith101]

anyone wishing info about this should contact international office in one of the following contacts

1 if in aus call 131673

2 if outside call +61 3 6222 2799

3 email [email protected]

hope this helps everyone in need of answers.

this is for all people enquiring about the age pension when living or moving overseas

[catwho]

Thanks all,for the plain english INFO,even i can understand it.cat.

[Old Croc]

I can understand smokers living in Australia getting upset when tax on cigs go up. You'll be paying more on a daily basis.

The government, pressured by interest groups like the Greens, have a long term goal of eliminating smoking altogether.

However, unless you travel very frequently the reduction in the duty free allowance couldn't mean that much in the big picture of things?

[edwinclapham]

I can understand smokers living in Australia getting upset when tax on cigs go up. You'll be paying more on a daily basis.

The government, pressured by interest groups like the Greens, have a long term goal of eliminating smoking altogether.

However, unless you travel very frequently the reduction in the duty free allowance couldn't mean that much in the big picture of things?

I didnt realise that many other countries have followed suit. http://www.abc.net.au/unleashed/3930082.html

I am a non smoker and realise the health implications but I can think of other items closer to home to extract more revenue from.

[ripstanley]

I was going to post about age pension but already quoted.

Edited May 9, 2012 by ripstanley