Australian Working Life Residence - tightening proportionality requirements

From 1 January 2017, pensioners travelling overseas will be paid their full basic means-tested rate of pension for up to 6 weeks instead of 26 weeks.

This Budget measure is subject to the passage of legislation.

Description of the measure

Once the pensioner has been overseas for a period of 6 weeks, their payment rate will change depending on the number of years they lived in Australia during their working life.

Currently, customers can remain absent from Australia for 26 weeks before their pension rate is adjusted. This will decrease to 6 weeks for those who leave Australia on or after 1 January 2017.

Questions and answers

Who will be affected by this measure

This measure will affect Age Pensioners who travel overseas on or after 1 January 2017. It may also affect pensioners granted unlimited portability and in receipt of Disability Support Pension, Wife Pension or Widow B Pension.

Pensioners who are already outside Australia on 1 January 2017 will keep the 26 week period until they return to Australia. All future overseas travel will be affected by the new 6 week rule.

Pensioners who choose to remain outside of Australia for more than 6 weeks will have their pension adjusted according to their Australian Working Life Residence. For more information about Australian Working Life Residence visit our website.

The date this measure will start and finish

This measure will start on 1 January 2017 and is ongoing.

Page last updated: 15 March 2016

This information was printed Monday 26 September 2016 from humanservices.gov.au/corporate/budget/budget-2015-16/budget-measures/disability-and-carers/australian-working-life-residence-tightening-proportionality-requirements It may not include all of the relevant information on this topic. Please consider any relevant site notices at humanservices.gov.au/siteinformation when using this material.