Australian Age Pension Rules for Expats about to change again from 1 January 2017

[4MyEgo]

Don't get caught in the crossfire.

The Federal Government has tightened age pension portability rules.

From January 2017, pensioners will only be able to remain absent from Australia for six weeks before facing possible cuts to their age pension.

Legislation passed last year by the House of Representatives has reduced the amount of time that an Australian receiving the age pension can be absent from Australia before facing a reduction in benefit from 1 January 2017.

The new time period is six weeks (down from 26 weeks) and the legislation is estimated to affect approximately 190,000 pensioners, compliments of the Australia Government.

Under current legislation, pensioners can be absent from Australia for 26 weeks before pension benefits are affected. After this amount of time, the pension is reduced to a rate that depends on the number of years that you have worked in Australia.

The Social Services Legislation Amendment (Budget Repair) Bill 2015 reduces this length of time to six weeks.

The exception is residents who have lived in Australia longer than 35 years, will continue to receive the pension even if they are away for longer than 26 weeks.

Edited December 6, 2016 by 4MyEgo

[sandgroper2]

Bloody great. My suggestion for a better headline would be " Only dinkum Ozzies to qualify for a fixed old  age pension".  The others, get a top up pension from the country of your birth.

[SaintLouisBlues]

If it's still a Bill and not an Act does it have any standing? Did it pass both Houses of the Australian parliament?

[4MyEgo]

10 minutes ago, SaintLouisBlues said:

If it's still a Bill and not an Act does it have any standing? Did it pass both Houses of the Australian parliament?

 

That is the $6,000,000 question: http://www.abc.net.au/news/2015-06-23/senate-passes-legislation-to-tighten-pension-eligibility/6565432

[4MyEgo]

12 minutes ago, sandgroper2 said:

Bloody great. My suggestion for a better headline would be " Only dinkum Ozzies to qualify for a fixed old  age pension".  The others, get a top up pension from the country of your birth.

 

Born in Australia would be more better.

[SaintLouisBlues]

5 minutes ago, 4MyEgo said:

That is the $6,000,000 question: http://www.abc.net.au/news/2015-06-23/senate-passes-legislation-to-tighten-pension-eligibility/6565432

The story you quote mentions nothing about ex-pats and the relevant Centrelink page does not mention these limits either, apart from stating that some supplementary benefits (but not the core pension) will be reduced after six weeks. However that's nothing new. Pensioners who travel overseas for longer than six weeks lose their entitlements to government concessions on eg. electricity and gas, and have done so for at least the past three years, but since they're not using electricity and gas while overseas that's hardly a penalty. A friend of mine from the UK has been living in Thailand for more than 10 years still receives his UK pension heating allowance because he's never told them he's out of the country

[sandgroper2]

17 minutes ago, SaintLouisBlues said:

If it's still a Bill and not an Act does it have any standing? Did it pass both Houses of the Australian parliament?

There is a Greek bloke who controls parliament. An  independent from South Australia. Australia has a very large Greek population, so, maby this much sort after change will fail.

[SaintLouisBlues]

6 minutes ago, sandgroper2 said:

There is a Greek bloke who controls parliament. An  independent from South Australia. Australia has a very large Greek population, so, maby this much sort after change will fail.

A fascinating insight. Thanks

[sandgroper2]

12 minutes ago, 4MyEgo said:

 

Born in Australia would be more better.

More better, I dont think so.

[4MyEgo]

2 hours ago, sandgroper2 said:

More better, I dont think so.

 

If born in Australia, they would be entitled to the full pension, if not, well.......

 

Australia has been throwing money away for years, I know of immigrants who have worked for less than 10 years paying minimal taxes and received pesnions, is that fair to the Australian community is it ?

[thaibeachlovers]

Just wondering why this is in the general forum as nothing to do with LOS?

[4MyEgo]

2 hours ago, SaintLouisBlues said:

The story you quote mentions nothing about ex-pats and the relevant Centrelink page does not mention these limits either, apart from stating that some supplementary benefits (but not the core pension) will be reduced after six weeks. However that's nothing new. Pensioners who travel overseas for longer than six weeks lose their entitlements to government concessions on eg. electricity and gas, and have done so for at least the past three years, but since they're not using electricity and gas while overseas that's hardly a penalty. A friend of mine from the UK has been living in Thailand for more than 10 years still receives his UK pension heating allowance because he's never told them he's out of the country

 

Knock yourself out, the legislation is clear cut: https://www.legislation.gov.au/Details/C2016B00091/Explanatory Memorandum/Text

[4MyEgo]

10 minutes ago, thaibeachlovers said:

Just wondering why this is in the general forum as nothing to do with LOS?

 

Couldn't find an alternate forum to put it in, and as it will affect expats, I thought it appropriate to post it, is that a good enough reason ?

[4MyEgo]

2 hours ago, sandgroper2 said:

There is a Greek bloke who controls parliament. An  independent from South Australia. Australia has a very large Greek population, so, maby this much sort after change will fail.

 

Sorry to burst your bubble: https://www.legislation.gov.au/Details/C2016B00091/Explanatory Memorandum/Text 

[madmax2]

12 minutes ago, 4MyEgo said:

 

If born in Australia, they would be entitled to the full pension, if not, well.......

 

Australia has been throwing money away for years, I know of immigrants who have worked for less than 10 years paying minimal taxes and received pesnions, is that fair to the Australian community is it ?

I know of plenty of immigrants who have paid taxes all of their working life in Australia (over 50 years) and quite often do not qualify for a pension  because they have invested and saved their money and have to much value in their assets 

I know Aussies born in Australia who only work for a living when forced to do so by centrelink

There are dole bludgers in both categories, If Australia had no immigrants there would probably be no money to pay pensions to anybody 

[thaibeachlovers]

14 minutes ago, 4MyEgo said:

15 minutes ago, 4MyEgo said:

 

Couldn't find an alternate forum to put it in, and as it will affect expats, I thought it appropriate to post it, is that a good enough reason ?

Couldn't find an alternate forum to put it in, and as it will affect expats, I thought it appropriate to post it, is that a good enough reason ?

Home Country Forum           

[4MyEgo]

12 minutes ago, thaibeachlovers said:

Home Country Forum           

 

Thanks, will note for next time 555

[flynn]

The means test is bad but also the law states that you have to be in Australia for two years before you pensionable age to have what they call a moveable pension, 

[cracker1]

What could be the purpose of limiting the amount of time a Pensioner could stay away from his country during his retirement, without penalties ?

[Phuket Greg]

18 hours ago, 4MyEgo said:

 

Edited December 7, 2016 by Phuket Greg
answered

[Jimbo2014]

I guess its all about you pay you benefit.  35 years working and living in Australia sounds a bit excessive though.  

[norbra]

1 hour ago, flynn said:

The means test is bad but also the law states that you have to be in Australia for two years before you pensionable age to have what they call a moveable pension, 

Not quite right. You must be eligible for,or receiving the aged pension and be deeemed(by Centrelink)to be an Australian resident for 2 years proir to being granted portability of aged pension.

Edited December 7, 2016 by norbra

[4MyEgo]

48 minutes ago, cracker1 said:

What could be the purpose of limiting the amount of time a Pensioner could stay away from his country during his retirement, without penalties ?

 

To save dollars by reducing pensions amounts, also the 2 year rule that one has to be in Australia before the OAP age is a big winner for the government as most, like myself weigh up the costs to return and live in Sydney for 2 years, would not be feasible, i.e. work out how many years it would take you to recoupe the money from the pension (if granted) Vs money spent to survive in Sydney to obtain the pension, with there being no guarantee that you will get it, the onus is on you to prove to CentreLink that you are back to remain in Australia, and who knows if one day they stop the portability or make further reductions, highly unlikely, but who knows ?

[twizzian]

Shoossshhhhhh! Don't let on to the UK government about this great Australian cut backs idea.

Believe me we've had more pension reforms than the UK changes its weather.

[novo58]

for those too lazy to actually .read the attached links .............it clearly states :      "according to their years of working life residence in Australia". This is calculated from the age of 16 years old.

 

To me this means to get the full rate age pension you must have lived in australia for 35 or more years from the age of 16yrs old ( it DOES NOT mention work).

Then it appears that AFTER you qualify for the age pension there is a 2 year timeframe BEFORE the full rate age pension becomes portable( ie, able to be collected whilst outside the country). After this if you live outside Australia you will lose some added concessions  such as free travel , electricity subsidy etc

[NoshowJones]

17 hours ago, thaibeachlovers said:

Just wondering why this is in the general forum as nothing to do with LOS?

Yes it is, there are lots of Aussie pensioners who are Thaivisa members living in Thailand, and it is surely an advantage to them.

[hanssna]

21 hours ago, 4MyEgo said:

After this amount of time, the pension is reduced to a rate that depends on the number of years that you have worked in Australia.

 

This is nothing new in European countries, for example I have worked in my home country only for 20 years ( until about 35 years old ) before moving to Asia, so logically will receive only about 40% of state pension after retiring in 15 years, just simple logic I guess.

[lvr181]

21 hours ago, SaintLouisBlues said:

The story you quote mentions nothing about ex-pats and the relevant Centrelink page does not mention these limits either, apart from stating that some supplementary benefits (but not the core pension) will be reduced after six weeks. However that's nothing new. Pensioners who travel overseas for longer than six weeks lose their entitlements to government concessions on eg. electricity and gas, and have done so for at least the past three years, but since they're not using electricity and gas while overseas that's hardly a penalty. A friend of mine from the UK has been living in Thailand for more than 10 years still receives his UK pension heating allowance because he's never told them he's out of the country

Obviously the pension authorities have no way of checking pensioner movements by their passports? How antiquated.

[Spock]

Surely if you are in the country for 7 out of 12 months each of the last 2 years and hold an Australian residential address you qualify under the 2 year period?

[Gillyflower]

I thought this 6 weeks business had been around for quite a while.  My niece has told me many times that her and her husband can only be out of Oz for that length of time,otherwise they have to start the paperwork all over again.

 

The 2 year residence is a bit of a bore.  Sometimes I think I would like to go back to live in Australia, but am deterred by this.  A good part of my French pension is NOT paid out of France so it is not envisageable.  Just for interest, because a partof my pension is special, I cannot be out of France for more than 30 days.  It is the same in Belgium.  Perhaps there are many more than the three mentioned that have these rules and regulations.