AUSTRALIANS who live overseas permanently or spend extended periods abroad are facing changes to their pension payments, with new rules taking effect from September 20.
The Federal Government’s Better Targeting the Pension Supplement measure means the basic component of the Pension Supplement will no longer be paid to pensioners after they have been overseas for more than 12 weeks, or to those who permanently move overseas.
The Age Pension itself is not affected, meaning eligible pensioners will continue to receive their main pension payment under existing overseas payment rules. The change applies only to the Pension Supplement, which includes a basic amount linked to Australian living costs such as GST.
For pensioners living overseas permanently, the maximum reduction is $30.70 a fortnight for a single person or $25.30 a fortnight for each member of a couple.
However, there is also a change that could benefit Australians who take extended holidays overseas.
Under the previous rules, the Pension Supplement was paid in full for up to six weeks overseas before being reduced to the basic amount. Under the new rules, pensioners can remain overseas for up to 12 weeks while continuing to receive the full Pension Supplement.
The new rules are:
Up to 12 weeks overseas: Pension Supplement paid in full.
More than 12 weeks overseas: Pension Supplement ceases completely.
Permanent move overseas: Pension Supplement ceases immediately.
The Government says about 95 per cent of pensioners will not be negatively affected because they live in Australia and generally only travel overseas for shorter periods.
Estimates suggest about 92,000 pensioners travel overseas for more than six weeks each year, with around 68,000 expected to receive more under the new arrangements than under the previous rules.
By contrast, about 88,000 existing pensioners living overseas are expected to have their payments reduced, while around 3000 people relocate overseas each year are also expected to be affected.
