To get the Age Pension, you need to meet residency requirements as well as the age requirement, the Income test and the Assets test. Generally, you must be an Australian resident and have lived in Australia as a resident for at least 10 years.
This guide explains who counts as an Australian resident, the 10-year rule and its exceptions, and what happens to your Age Pension if you travel or live overseas.
Justin Bott, Community Information Officer at Services Australia, spoke to SuperGuide about how these rules work in practice. His comments appear in this guide.
What are the Age Pension residency requirements?
Living in Australia is not enough on its own. You need to be an Australian resident, which means you live in Australia and are:
- an Australian citizen
- the holder of a permanent visa, or
- the holder of a protected Special Category visa (SCV), which applies to some New Zealand citizens.
On the day you claim, you generally need to be living in Australia, physically in Australia and an Australian resident.
As well as being a resident, you need to meet one of these requirements:
- you have been an Australian resident for at least 10 years in total, with at least five of those years in one continuous period
- you are a woman whose partner died while you were both Australian residents, and you have been a resident for the two years immediately before you claim
- you were receiving certain eligible income support payments before reaching Age Pension age and can transfer to the Age Pension under the special residence rules.
When does the 10-year period start?
Only periods when you were living in Australia as an Australian resident count towards the residence requirement. Time spent in Australia on a temporary visa generally does not count.
For example, if you lived in Australia for four years on a temporary visa before being granted permanent residency, the 10-year period generally starts from the date your permanent visa was granted, not the date you arrived.
Are there any exceptions to the residency requirements?
Yes. The 10-year requirement does not apply if you are a refugee or former refugee who is an Australian resident. You still need to meet the other Age Pension requirements.
Australia also has social security agreements with a number of countries. Depending on the agreement, periods of residence or contributions in another country may help you qualify for the Age Pension, and you may be able to claim while living in that country. Different calculation rules can apply.
Can you receive the Age Pension while living overseas?
Yes. Once you receive the Age Pension, you can generally keep receiving it while you travel or live overseas, although the amount can change the longer you are away.
“For Age Pension purposes, it is very possible that you can travel overseas. In fact, you can live overseas if that’s what you want to do and continue to get the payment for the rest of your life. How much you get depends on how long you’ve lived in Australia before you travel.”
Justin Bott, Services Australia
If you are temporarily overseas, your payment changes the longer you are away:
- Up to six weeks: your Age Pension rate generally does not change.
- After six weeks: your Energy Supplement stops and your Pensioner Concession Card is cancelled.
- After 12 weeks: your Pension Supplement stops.
- After 26 weeks: your Age Pension rate may change depending on how long you were an Australian resident between age 16 and Age Pension age.
If you leave Australia to live overseas permanently, your Energy Supplement and Pension Supplement stop, and your Pensioner Concession Card is cancelled, from the date you leave.
Changes to your income or assets while you are away can also affect your payment, and a social security agreement can change what you receive.
How is the overseas rate worked out after 26 weeks?
The 10-year residence requirement determines whether you can qualify for the Age Pension under the normal residence rules. Australian working life residence is a separate calculation that can affect how much Age Pension you receive after being overseas for 26 weeks.
The period between age 16 and Age Pension age when you were an Australian resident is called your Australian working life residence (AWLR). Despite the name, you do not need to have been working during those years.
If your AWLR is 35 years or more, your basic Age Pension rate is generally unaffected by the AWLR rules. If it is less, your basic pension rate is generally reduced in proportion. For example, if you were an Australian resident for 20 of those years, you would generally receive 20/35ths, or about 57%, of the rate you would otherwise receive.
Some pensioners who were already receiving an Australian social security payment while living overseas on 1 July 2014 may remain covered by the previous 25-year rule. Specific conditions apply, including having at least 25 years of Australian residence and not subsequently spending more than 26 weeks in Australia while continuously receiving the Age Pension.
What if I recently returned to Australia?
If you return to Australia to live and then start receiving the Age Pension under Australia’s domestic rules, your pension may stop if you leave Australia again within two years of your return. Your payment may be able to continue if you travel to a country that has a social security agreement with Australia.
Will I continue receiving the Age Pension the whole time I’m living overseas?
Generally, yes, as long as you continue to meet the rules and keep your details up to date.
If you are older than 80 and live overseas, Services Australia may send you a Proof of Life Certificate. You need to have it certified and return it by the due date or your payment can stop.
Summary
To get the Age Pension, you generally need to be an Australian resident and have lived in Australia as a resident for at least 10 years, with five of those years in one continuous period. There are exceptions for refugees, some widows, and people who have lived in countries with a social security agreement with Australia.
You can generally keep receiving the Age Pension if you travel or move overseas, but the Energy Supplement stops after six weeks of a temporary absence, the Pension Supplement stops after 12 weeks, and your basic pension rate can change after 26 weeks. If you are planning an extended trip or moving overseas, check how the rules apply to you before you leave Australia.
The information in this article is general in nature.