Budget 2017: Age Pension portability changes scrapped

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Announced in Budget 2015/16, changes to Age Pension portability have been scrapped as part of the overall dump of measures that the Government has failed to pass through the Senate.

The changes would have seen those who choose to live overseas have their Age Pension payments subject to the work life residency rule after six weeks, rather than the current 26 weeks.

The work life residency rule means that those who have not resided in Australia for 35 years or more between the ages of 16 and Age Pension age, have their Age Pension paid at a pro rata rate should they leave the country for a period of more than 26 weeks. For example, if you have only lived in Australia for 24 years between these ages, you will receive 24/35ths of your applicable Age Pension payment.

The scrapped change was due to take effect from 1 January 2017 and would have affected around 81,000 age pensioners, however, it was a measure that was vehemently opposed by the opposition and crossbench senators.

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Written by Debbie McTaggart


Total Comments: 6
  1. 0

    Not sure what this means, so would be really interested if someone might be able to clarify it for me, I have lived in Australia for 50 years, my wife and I like to travel, sometimes we are away for 3 months, I heard that there were some changes coming that would affect our pension if we are away for more than 6 weeks, in the past the only part of our pension that was affected was the supplementary part of our pension, has that changed? Is more of our pension going to be affected? Confused

    • 0

      Nothing has changed for you.

      Forget about the rubbish you read on this site.

      If you are away for 3 months, you only lose the supplement payments after the first 6 weeks. They are reinstated when you get home. End of story.

  2. 0

    My understanding is that everything is going to stay the same as it was because the Government couldn’t have their proposed changes passed

  3. 0

    Two items that may be relevant.
    The pension card is cancelled after being out of Oz over 6 weeks.
    Have to re-advise elec/gas co’s etc to ensure winter concessions continue.
    Also carers allowance suspended after 6 weeks.

    • 0

      Pension card WAS NOT cancelled after 6 weeks.

      You only lost the 2 supplementary payments if you were out of the country more than 6 weeks. They were then reinstated as soon as you arrived back in Australia. You were still paid your usual Pension payment.

      I wish people would stop confusing the the two components of your fortnightly pension payment.

      I don’t know about the gas/elec companies. I have never been away longer than 5 weeks, so none of this misinformation that keeps getting repeated on this site ever applied to me.

  4. 0

    The requirements for receiving the aged pension have changed since July 2014. I was overseas for 3 years and on my return aged 65 I was told I could no longer receive the pension if I left Australia within 2 years. Since I have over 35 years in the workforce and I am an Australian citizen why was this rather pointless and petty restriction brought in. Has this requirement been scrapped along with the rest of the Government rubbish?



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