Pensioners overseas
The changes outlined in this fact sheet form part of the Secure and Sustainable Pension Reform package, most of which took effect from 20 September 2009. These changes apply to customers in receipt of Age Pension, Disability Support Pension1, Wife Pension, Widow B Pension, Carer Payment, Department of Veterans’ Affairs (DVA) Service Pension and Income Support Supplement.
Please note that these arrangements apply to pensioners living overseas.
An increase to the pension rate
From 20 September 2009, for single pensioners living outside Australia, the maximum single pension rate increased by A$60 per fortnight. Full-rate single pensioners received the full increase. Single pensioners whose pensions are reduced under the income or assets test and/or on the basis of limited Australian residence, received a partial increase of at least $20.20 per two weeks.
This increase was paid on top of indexation increases. New indexation arrangements for the base pension have been introduced from 20 September 2009 to better reflect changes in pensioners' living costs, and a new, higher benchmark to average wages took effect from 20 March 2010.
From 20 March 2012, the maximum rate for pensioners living overseas is $716.30 a fortnight for a single pensioner and $541.60 a fortnight for each member of a couple.
The Pension Supplement - merging various pension add-ons into a single supplement
From 20 September 2009, for pensioners living in Australia, or for the first 13 weeks for pensioners who are temporarily outside of Australia, the Pension Supplement combined the range of supplements and allowances that have been added to the basic pension over recent years. It included the value of the fortnightly GST Supplement and Pharmaceutical Allowance, as well as the quarterly Utilities Allowance and Telephone Allowance.
Pensioners who are outside of Australia permanently or for more than 13 weeks continue to receive a Pension Supplement Basic Amount, equivalent to the GST supplement they were previously receiving.
Figure 1 and Figure 2 below illustrate the pension system for single and couple pensioners living overseas permanently or for more than 13 weeks.
Figure 1 Australian Pension payments: Rate for people living overseas (Single)
Figure 2: Australian Pension payments: Rate for people living overseas (Couples combined)
Income test changes
From 20 September 2009, the income test taper rate increased from 40 cents in the dollar to 50 cents in the dollar. The income test taper rate is the rate at which income in excess of the income test free area reduces the pension. The previous additional income test free area for customers with dependent children was removed.
A transitional rate protects existing pensioners at 19 September 2009 who would otherwise have had an immediate reduction in their payment due to the changes to the income test. These pensioners remain on this transitional rate until they are better off under the new rules.
This transitional rate is subject to Consumer Price Index (CPI) increases in March and September.
When a pension is cancelled for any reason and later restored, it will be restored under the new rules, not with the transitional rate.
For example, if the pension is stopped due to an extended absence from Australia and is restored upon return to Australia, the restored pension would be paid under the new rules.
More information
For more information about how these changes may affect you, please go to the ‘Secure and Sustainable Pensions’ link at www.centrelink.gov.au or contact Centrelink International Services on:
From Austria 0800 295 165 (free call)
From Canada 1888 2557 493 (free call)
From China (North)1 10 800 6100 427 (free call)
From China (South)2 10 800 2611 309 (free call)
From Denmark 8088 3556 (free call)
From Germany 0800 180 2482 (free call)
From Greece 0080 0611 26209 (free call)
From India 000 800 61 01098 (free call)
From Indonesia 001 803 61 035 (free call)
From Italy 800 781 977 (free call)
From Korea Republic 003 081 32326 (free call)
From the Netherlands 0800 0224 364 (free call)
From New Zealand 0800 441 248 (free call)
From Philippines 1800 1611 0046 (free call)
From Portugal 800 861 122 (free call)
From Singapore 800 6167 015 (free call)
From Spain 900 951 547 (free call)
From Thailand 001 800 611 4136 (free call)
From Turkey 00 800 6190 5703 (free call)
From UK 0800 169 5865 (free call)
From United Arab Emirates 800 061 04319 (free call)
From USA 1866 3433 086 (free call)
From elsewhere, or if the above numbers are not available: +61 3 6222 3455
Note: these international free call numbers connect you directly to Centrelink International Services. This free call may not be available from every location within the country, and may not be free from mobile phones or public phones. You may need to insert coins/card in pay phones as for a local call and this may not be refunded at the end of the call.
1.China (North) is the provinces of Beijing, Tianjin, Hebei, Shanxi, Inner Mongolia, Heilongjiang, Liaoning, Jilin, Shandong and Henan. All other provinces are considered to be China (South) for this purpose.
2. Disability Support Pensioners under 21 without children continue to be paid at a rate that includes the equivalent Youth Allowance rate, Youth Disability Supplement and Pharmaceutical Allowance. They also continue to be paid the Utilities Allowance and Telephone Allowance quarterly, if eligible, during temporary absences for up to 13 weeks.
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