Thinking about a long overseas trip to reconnect with loved ones or finally visit that dream destination?
For many Australians over 50, travel represents freedom and fulfilment after years of dedication and work.
But what happens when that long-awaited journey takes an unexpected toll—one that affects your finances more than you’d expect?
This is exactly what happened to Lauren (not her real name), a 78-year-old widow, who came home from visiting her family in the United States to find her Age Pension had quietly decreased.
Lauren’s story is a cautionary tale for anyone receiving the Age Pension and considering spending more than a few weeks outside Australia.
She originally planned a short four-week visit to Tennessee to see her son and grandchildren.
But when her daughter, Jessica—also her travel companion—required a minor medical procedure, Lauren did what any parent would do and extended her stay to help care for her.
What she didn’t expect was to return to Australia and discover her pension payment was $30 short, followed by $50 less the next fortnight.
‘I was initially staying for a month, with my daughter going on to do more travelling,’ Lauren said.
‘But I wasn’t going to leave her in case her condition got worse.’
When Lauren contacted Centrelink, she was told that pensioners cannot stay outside Australia for more than six weeks without facing a reduction in their pension.
‘And the pension gets reduced more and more—for each week you are away,’ she said.
‘Australians who have worked hard our whole lives get punished for daring to spend more than six weeks out of Australia. It’s disgusting.’
Despite explaining her situation, she was informed that she would not be reimbursed for the lost payments.
Her full pension was only reinstated once she had returned to Australia.
‘I want everyone to know about this rule. Just because you travel overseas doesn’t mean you’re rich,’ she said.
‘People have direct debits and rely on their pension to pay bills. It’s outrageous.’
Lauren’s experience is a warning to all pensioners planning extended overseas trips.
To avoid a similar fate, it’s important to understand the rules around pension payments when travelling abroad—and the steps you can take to protect your finances while away.
The Age Pension portability rule: What you need to know
What exactly is going on here?
The answer lies in a lesser-known rule known as ‘Age Pension portability’.
According to Services Australia, the amount of pension you receive while abroad depends on how long you are away, how long you have lived in Australia, and whether your trip is temporary or permanent.
If you are planning to be overseas for more than six weeks, you must notify Services Australia.
Otherwise, your payments will be automatically reduced.
Here’s how the rule works:
- After six weeks overseas, the Energy Supplement portion of the Age Pension stops
- The Pension Supplement is gradually reduced until it reaches the basic rate
- After 26 weeks, your Age Pension rate may change again, depending on your Australian residency history from age 16 onwards
- Your concession card is cancelled after six weeks abroad and only reissued upon your return—if you are still eligible
Lauren learned this the hard way. She came home to a backlog of mail and a new concession card she hadn’t expected.
‘There was just no warning,’ she said. ‘I am worried other people don’t know about it. I am just lucky I was with relatives and didn’t have to worry about finances as much.’
Why does this rule exist?
According to Chris Grice, Chief Executive of National Seniors Australia, the government seems to assume that if someone can afford to travel, they must be financially well-off.
‘You’ll find that they’re sort of saying, ‘Oh, hang on, you’re out of the country. You don’t need electricity’,’ he said.
‘We all know that’s not the case. Not everybody’s doing a $40,000 scenic river cruise.’
In reality, many Australians over 50 travel not for luxury, but for family reasons, emergencies or cultural connections. And the longer they are away, the more their pension can be reduced.
‘A conversation with Services Australia is pretty important if someone is going for that longer trip,’ Mr Grice said.
It’s not just the Age Pension
Age Pension recipients are not the only ones affected by portability rules.
Other government payments—such as study allowances, carer’s allowances and the Disability Support Pension—also have overseas travel restrictions.
For instance, Disability Support Pension recipients may only be allowed to spend 28 days overseas in a 12-month period.
Have you been caught out?
Lauren’s experience highlights the importance of understanding how travel affects your pension.
‘I am just lucky I was with relatives and didn’t have to worry about finances as much,’ she said.
But not everyone has that safety net. Before heading off on your next big trip, take time to research how your government payments could be affected.
Even a short extension of your travel plans could have lasting financial implications.
Have you ever encountered any challenges with your pension or other government payments while travelling overseas? Do you think the current rules fairly reflect the needs of today’s travellers? What changes, if any, would you suggest to improve the system? We invite you to share your experiences and views in the comment below.
Also read: Age Pension changes? Centrelink says scammers are on the hunt—here’s what to know
I was aware of this restriction many years ago when I first went back to the UK after 45 years. We selected a stopover in Singapore on the return, meaning because of flight scheduling, we were three days over the six weeks. I notified Centrelink prior to leaving and never gave it another thought, but, you guessed it, when we returned, our pensions had been reduced because of that three days!!! I know a lot of pensioners who have been caught out by this rule and it should be identified more by Centrelink to all pensioners.
I have no issues with peoples pensions declining if they stay overseas for a period of time, in this case over 6 weeks. People seem to forget the immigrants that came to Australia and then went back to their home country and didnt let Centrelink know and received pensions or allowances for years, even though they hardly contributed to Australias taxes. Live in Australia, get what you are entitled to, live overseas thats your problem.
It is rare that I agree with Centrelink however with this holidaying overseas I can see absolutely no reason at all as to why the Australian public should pay for this. We are seeing thousands of people taking annual, and more frequent, trips overseas at Centrelink expense. The rules should be very short and simple – LEAVE AUSTRALIA LEAVE YOUR PENSION – NO EXCEPTIONS.
I have been caught out by this ruling a few times, but I was aware of it before leaving Australia, the main drop is the energy supplement which assists in reducing your energy bill, I’ve never had an issue with this, obviously your energy bill is going to be lower because you are away, make sure you turn off your power and gas before leaving your bill will be lower, your supply charge won’t drop so you will still be up for the full supply charge. Another thing people should be aware of is your household insurance can be affected if you are away for an extended period, sometimes claims can be rejected, depending on how long you are away.
My contents insurance will cover my contents for up to 90 days, so a 12 week trip (84 days) is very doable.
Disgusting. To think it is our own Government seeking to penalise Aged Pensioners whichever way they can.
Our own fault really, for allowing our Politicians to continue receiving their very generous Parliamentary Pensions and benefits, whilst simultaneously scrutinising every cent the elderly receive.
Another thing, each person (whether they are single/married/ or in a relationship) should receive the same Aged Pension as an entitlement for the lifetime of contributions they made working and paying tax or raising families for the betterment of this country.
Just consider the time and costs that Centrelink would save, not needing to investigate the household relationship status of people in order to establish how much individuals receiving the Aged Pension should receive. I worked, you worked, everyone should receive exactly the same amount of the Aged Pension.
Absolutely correct. Every Australian should receive the same rate of age pension with things like living arrangements making no difference. Things like rent assistance should end too as that is really only a subsidy for landlords and an excuse to push rents higher. The government should provide low cost secure housing instead of subsidizing private landlords to profit off their tenants.
And the mean Liberal governments slashing of overseas travel times for pensioners should be reversed. It was not always like it is today and six weeks is simply a punishment to appeal to the LNP’s hard right base. Six months would be more realistic and Labor should return it to that but Labor is today almost as far to the right as the LNP. Maybe the Greens in the Senate could do some deals to return some fairness to the system.
Rent assistance is ESSENTIAL to we renters. The landlord gets none of it, but we still have to cope with rising rents. If I was to leave my current property, my rent would increase from $70 PER WEEK ($250 – $320) mimimum. That’s not accounting for the paltry 80 cents per fortnight increase in our rent assistance in March!
How would like to be paying over 35% of your pension in rent? Certainly not. Rent assistance is essential for we who don’t have our own residence, and I certainly come into the most ‘stressed’ category of being a female on full age pension, renting and cash-strapped, and no superannuation to ‘back me up’.
I’d be better off overall if I was in public housing, but I’ve been on the list for nearly 9 years, now, and absolutely NOTHING has come my way. I still get the irregular SMS message asking me if I still want to be on the ‘list’, to which I answer Y, hoping that my name is coming somewhere near the top, but still nothing happening.
As for the building of new properties, the NSW Government has promised us new properties for Housing, but nothing’s happening here. There’s plenty to spend on upgrading community spaces where current tenants live, but ABSOLUTELY NOTHING for the building of the new properties – such a very big disappointment!
As for the 6 week maximum time out of the country before the payment is reduced, it’s been like that ever since I ‘looked into’ travelling overseas in my 40s, and that’s nearly 30 years ago! and we’ve had many changes of government since.
My ex & I travelled to the UK for 12 weeks in 2013. I received my full DSP (except rent assistance) for the first 6 weeks, then it was cut off. My ex kept on receiving his lower rate of Carer Payment (except rent assistance).
All I had to do when arriving home was to sign the new lease for a property and drop into Centrelink to give them a copy of the lease and they reinstated my DSP with rent assistance and my ex’s rent assistance.
In between the 2013 trip and now, the DSP is only payable for the first 4 WEEKS, then it’s cancelled, and you have to reapply for it when you arrive home – which means all the paperwork, medical reports to prove you still have a disability, and the waiting for the outcome.
Now I’m on the Age Pension, I can still travel outside Australia for the first 6 weeks with full pension, and once the 6 weeks are up, the energy allowance goes, and the pension supplement goes to a basic rate – it doesn’t decrease gradually. This has rarely changed in all the time I’ve been on a pension – since 1994.
I don’t know where the figures in the post are coming from, but the payments shouldn’t decrease after arriving home and notifying Centrelink the day you arrive. I’d still do this, even though Immigration notifies Centrelink of the departure and arrival through their channels.
The rates I receive in Thailand is as follows:
Base Full = 1,051.30 Reduced = 1,051.30 (No change because I am AU Citizen)
Supplement Full = 83.60 Reduce to = 29.00
Energy Full = 14.10 Reduced = 0.00
Total Full = 1,149.00 Reduced = 1,080.30
Rental = Not available because UR Overseas
Total Fortnite Full = 1,149.00 REDUCED to = 1,080.30
FYI:
With this reduced pension of 1,080.30 a Fortnite I am able to Fill full 2 fridges with everything You think Meat, Vegies Eggs (30 on a bag) fruit etc etc and all fresh on the local markets in my village up north and I spend a max of about $200 to $250 depending if I buy some Australian Cheese and other imported food like Danish Salami or ??? else.
Also I have a partner (Not married) that we look after each other and we purchase a 2,800 square meters of land on her credit account and now after 4 years is fully paid. W have build a 2 bedrooms home also with mortgage over 5 years (Fully paid now) and a new car 8 years ago (Fully paid) ….. we live in peace enjoying natural life with 3 dogs he he he …
I do not need to return to Australia at all but only return for very short time to get some medical check (I am 82 very healthy) I do not have insurance here (Extremely expensive – it is a robbery) the Thai government will accept you in any hospital and cure your illness as required in any emergency for very small money and English speaking good doctors (Check Bangkok Hospital for info). We have hundred of clinics that they check you pressure a do some fixes if you have small cuts or something that do not nee hospital and they provide you all the medicines you need and you only pay the cost of medicines and a few extra for doctor service – I get Blood pressure and blood check for my Diabetes II every week and I only pay $1 for the blood strip to get my blood count.
So yes nice living but you are always a tourist never a resident only a retired visa for 12 month renewable (Must be 50+) but if you ever consider to come here Learn the Law and property Laws for foreign people also the culture and respect – Remember this is not Australia and if U get in problems you will loose every time …. So think before you move ….. I spend 3 month learning and going to chats and talk to lots of people also I came for 3 weeks to look and learn then I got my visa and come in …. this over 10 years ago he he he he …. Now I only return to AU to get a free lunch from my kids and quick health check …. so far all 100% only looking after y Diabetes II with fresh food ok Yeahhhhhh.
Cesar. Well done. Many Australian Expats in Thailand enjoying a great affordable life.
Just to add to your post. There are many YouTube videos out there on Thai life for Expats but you need to weed out the rubbish. Also FB groups that can help etc. Again, weed out the rubbish and beware the idiots on FB giving false and misleading information especially when it comes to Thai Immigration and Centrelink.
And forget the tourist areas to live as they are more expensive than living in the likes of Isaan.
By the way if you return to AU you do not need to report shit to Centrelink they know immediately by a second the day you arrive and your pension is restored for 6 week then PO again if you want
Funny you should say that , Cesar, I was going to post that information. I was in Centrelink office in Qld one day talking to a customer service operator, and he forgot himself and showed me his computer screen,, and there were the dates my wife and i left Oz, and the day we came back from our holiday. That was an eye opener, so you don’t have to tell the spy ring, ‘BigBrother is watching you”. It seems like Centrelink has a direct line to Border security/Customs
and that was for a 10 day holiday in Seattle, WA.
Do not complain about reduced pension because you do not pay tax on the pension – I also receive a very small USA pension for my work back on the 80’s (About $80 x month) less 30% tax on every dollar I received from them so if you calculate the diff. between Full and Reduced pension in AU is not a lot and considering the exchange rates on any Asian country like Thailand, Bali Philippines, China etc etc it is nothing so do not complain unless you are jealous of us that live overseas like kings and you do not have the ball to do the same
No offence please …. but think about it …. but if you get offended for my words my apologies’ …. I am sorry
Agree. We all make choices in life especially when retired. It’s what makes us happy and puts a smile on our faces every morning when we wake up as we know today is going to be another great day wherever we are.
Enjoy the land of smiles and what Thailand offers.
The Govt & Aust tax payer saves a lot when Pensioners leave Australia. As we see above if a person is getting Rent assistance as well …..that’s a saving of nearly $7000- to the Govt coffers.
Then, you add the cost of Medicare , PBS schemes , Utility discounts, dental & optical services , cheaper public transport, motoring discounts etc etc …..that are ALL subsided and that $7000 grows into a BIG number.
But ….what happens if they wind up in a state funded nursing home.??? $70 a day food & toiletries, $120 a day accommodation for starters. Then they may need specific medical attention for all kinds of ailments. You’re well into a SIX figure number by then .
I’ve known several old retirees that simply stay away until they pass on.
The government bean counters won’t publicly admit it…..but they’d prefer the old folk to just go away.
I totally disagree with the people who think both members of a couple living together should receive the same as a single person. Housing costs are generally the same whether one or two people are living in the property.
Similarly, as a single, I pay the same for a hotel room as a couple would.
This was a real issue many years ago when some migrants, particularly from the UK, Italy, Greece and Malta would spend 20 or 25 years in Australia get the age pension then return to their homes. As many immigrants grew up on smaller towns and villages, they could return to their country towns and where cost of living was lower.
These days some age pensioners are moving to Bali, Malaysia and Thailand where the cost of living is much lower, and are shocked to find they lose some of their age pension.
What a lot of people forget is that the age pension was introduced in 1907 as a welfare payment and its intention has never changed, it is still a welfare payment.
With the age pension your taxes when working are used to pay the age pension for current pensioners, and your age pension is being paid for by current workers taxes. You do not contribute to pay for your age pension.
This is the way the age pension was deliberately designed; current taxpayers pay for current pensioners and future taxpayers pay for future pensioners.
It is different to superannuation where you pay today for your future super pension.
This is exactly as designed.