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 (generally, the only social security payment payable overseas indefinitely is Age Pension).

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 were 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 were 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 2013, the maximum rate for pensioners living overseas is $755.00 a fortnight for a single pensioner and $570.90 a fortnight for each member of a couple (these amounts include the pension supplement basic amount).

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 were 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. 

From 1 January 2013, the Pension Supplement is paid for the first six weeks that a pensioner is outside of Australia. After six weeks, only the Pension Supplement Basic Amount is payable.

Rent assistance will continue to be paid for the first 26 weeks of a temporary absence from Australia for age pensioners and for six weeks for all other pensioners. 

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 ‘Australians overseas’ link at the Department of Human Services website or contact International Services from:

Note: These international free call numbers connect you directly to the Department of Human Services 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.

* 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.