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Post by pmuller on Sept 24, 2013 12:56:18 GMT 7
It was announced in the Labour budget this year that the Australian working life residency requirement for an age pensioner living overseas would be extended from 25 to 35 years. That means to receive a full pension overseas (less the add-ons) you need to be resident in Australia for 35 years between age 16 and retirement age. The effect is to drastically reduce the income of overseas pensioners since their amounts are determined as a pro-rata proportion of that time, eg 30 years AWLR gives you 30/35 of the pension. My wife and I have residency of only 25 years.
However, with a new government, and references in the government literature to the phrase "subject to legislation", the wires have gone dead on the current status of these changes. My wife and I are working on the basis that it will go through, resulting in me giving up my job 1-2 years before I intended (I need to top up my legislation to buy a house, but now cannot) and leaving Australia. We are having to upend our lives on the basis of an intention of an out-going government. It seems unlikely that the Liberals will forego a chance to garner more money! And we feel we can't risk losing so much income by gambling on no change.
Does anyone have a precise knowledge of these issues?
(a) Is new legislation needed to action this proposal?
(b) Has there been any confirmation that the changes will definitely go ahead?
(c) Is anyone else in the same boat as we are? If so what are you doing about it?
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Post by Banjo on Sept 24, 2013 13:17:31 GMT 7
Welcome to the board p. Here's the release. www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/BudgetReview201213/ResidencyPortabilityChange to residency requirements Background The Government announced a tightening of the Australian working life residency (AWLR) requirements for persons to be paid an income support payment while resident overseas in the 2012–13 Budget.[1] Australian working life residency—strengthening requirements Normally, to qualify for an Age Pension (AP) or a Disability Support Pension (DSP) in Australia a person must have been resident in Australia for at least 10 years. Thereafter, only some Australian income support payments are payable when a person leaves Australia to reside overseas. These are the AP, Wife Pension (WP), Widow B Pension (WidB) and some DSP recipients. As at June 2010, there were 71 360 income support recipients residing overseas permanently. The majority (79 per cent) reside in European countries. Of those resident overseas, 62 148 (87 per cent) were receiving AP, 7572 were receiving the DSP, 575 receiving WidB and 969 receiving WP.[2] Annual expenditure as at June 2010 on Australia’s pension payments paid to people living overseas was $571.3 million and at the same time, pensions from overseas countries being paid to people residing in Australia totalled $1.2 billion.[3] Currently, for a person resident overseas, to be paid the maximum rate of AP they would otherwise be paid if resident in Australia, they require 25 years AWLR. Recipients with less than 25 years of AWLR are paid a proportional rate based on the duration of their working life residence in Australia. For example, if a person has 16 years of working life residence, they can receive 16/25th of the rate otherwise payable when a resident in Australia. Most overseas contributory based pension systems pay their minimum overseas rate after about 15 years and their maximum rate of pension after about 40 years of contribution. From May 1973, a pension granted in Australia could be paid in any country in which the person lived. The initial AWLR rules for AP were introduced from 1 July 1986. From 1986 to 2004, different payments had different rules as to how long they could be paid where a person was overseas. From 1988, payment of the Sole Parent Pension, where a person was overseas, was limited to 12 months and the Wife Pension, Widow B Pension and Disability Support Pension also had limited payment periods in some cases from 1991. Originally, Carer Payment was not portable for any period from 1987 but now has limited portability.[4] The Howard Government standardised the payment overseas rules for the different payments in 2004 and also provided a reduced payment period during a temporary absence overseas. Generally, payment was reduced from 26 weeks down to 13 weeks from 1 July 2004. Budget proposal The Budget proposal is to extend the current 25 years AWLR requirement, to attract a full-rate of payment otherwise payable in Australia, out to 35 years of AWLR.[6] This is to apply from 1 January 2014 to persons who, having exceeded their 26 weeks temporary absence period, are resident overseas. Additionally, the AWRL rule is to be applied separately to a partnered pensioner. Currently, a partnered pensioner (WP) can rely on the primary pensioner’s AWLR to set their rate. This latter requirement will not involve many recipients — as at June 2010 there were only 24 655 Wife Pension recipients[7] and, of these, only 969 were resident overseas.[8] The Budget proposal estimates savings of $50.8 million over four years.[9] Comment The increase in the AWLR rules from 25 to 35 years will see increased numbers of people resident overseas paid lesser amounts of pension. This is where the estimated savings will be realised. A person’s AWRL is fixed by the number of years they have been resident in Australia — this not an element a person can readily change. Changing the year requirement from 25 to 35 years will adversely affect those with an AWLR of between 26 to 34 years. |
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Post by Banjo on Sept 24, 2013 13:23:37 GMT 7
AS you can see, it's a budget proposal, it may come into being next year, I would say that it probably will, you could try contacting your MP, either by email or by phone.
The legislation will have to be amended.
If the legislation is put before parliament you have several options, none of which may work.
We made Senate submissions (as individuals)when the portability legislation came up and had it changed to include an indefinite portability clause for the DSP.
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lizmac
New Member
New member
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Post by lizmac on Nov 18, 2013 19:43:03 GMT 7
Can i just ask, if you are out of the country on Jan 1, 2014, are you safe from the changes ? This is what i have been told through int. services.I am seeking to return to Germany for up to 6 months under the international agreement while my claim for UP is assessed. (I was planning on putting in my paper work tomorrow). However, the rate of pay will be significantly lower under the agreement if these changes are applied to me. Too low to even go. So, my question to international services was: am i really safe if I am out of Australia on Jan 1 2014? Or could it be that i must be on an international agreement on that day ( i.e i would have to leave Australia 6 weeks prior to Jan 1 2014 and that, whoops, is tomorrow).
A worker at int services said that most often, when changes occur, people who are not in the country on the day they come into being are not affected . But she was open about not knowing for sure how the law will be applied. I'm worried and seriously wondering if i need to board a flight at very short notice and forego my UP assessment for another 6 months to make sure i retain my current rate of pay under the international agreement. ( i know if i was successful in being granted UP i'd be safe from the changes to rate of payment but that doesn't seem like a very sure option. Even with solid support from doctors). And meanwhile i'd lose any real chance to live outside Australia in Germany. What are folks opinions on staying safe from changes? Do you agree that in the past people who have been out of Australia on the day when new laws were introduced to curtail the DSP retained their previous rights?
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Post by Banjo on Nov 18, 2013 20:06:32 GMT 7
When they changed the portability legislation from 13 weeks to 6 at the beginning of this year anyone out of the country was allowed to complete the 13 weeks.
Some people left only a few days before the change to get the full benefit.
I would assume that this would apply to any changes that effect you, but once you return you are covered by the new legislation.
To be honest I cannot see any coming changes to the Social Security Act being for the better.
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Post by hypoman on Nov 19, 2013 5:31:29 GMT 7
Banjo just a question mate, to work out the time we can be abroad after the leglislation was introduced at the beginning of the year, would you calculate fron 1st jan 2013 to end of June 2013? then from then on just calculate the days in the financial year?
Im just unsure how the financial year comes into it.
thanks mate....
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Post by Banjo on Nov 19, 2013 7:27:51 GMT 7
The guide I read was that they can take "time away" from any two calendar points they like.
I would not put it past them to include time spent away before the legislation changed.
If you were away 4 months from June '12 to the end of the year, then another 4 to July '13 then they could easily consider this to be 8 months away in a 12 month period.
But at the moment I honestly don't know, I've yet to hear anyone losing the pension on residency since the legislation changed.
Stick to the old DSPoverseas recommendations as much as you can, they know you have strong overseas ties but make sure your Aussie ties are strong as well.
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Post by frustated on Jul 13, 2014 12:57:05 GMT 7
The 35 years does not apply to NZers, English and I think 1 or 2 more nationalities. You should check on their web site which is about as easy as finding a needle in a haystack and usually as informative as reading the theory of quantum physics. |
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Post by fedup on Jul 13, 2014 18:04:41 GMT 7
I agree frustrated
So I would like to know from these arrogant clowns why since my last vist back to oz,my DSP pension has dropped from $766 to $648 and next payment $625
It has been two weeks since I emailed for an explanation,to which I am still waiting for an answer
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Post by Denis-NFA on Jul 13, 2014 18:28:22 GMT 7
I agree frustrated So I would like to know from these arrogant clowns why since my last vist back to oz,my DSP pension has dropped from $766 to $648 and next payment $625 It has been two weeks since I emailed for an explanation,to which I am still waiting for an answer It looks like you are on the couples payment with lessening amounts of supplement!? You may have done it before but it may be time to do a Freedom of Information request for either the recent past or your entire file. |
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Post by fedup on Jul 13, 2014 23:16:54 GMT 7
No,that is not the case,I am single,see my posts fun and games the centrelink way
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Post by Denis-NFA on Jul 14, 2014 0:08:07 GMT 7
No,that is not the case,I am single,see my posts fun and games the centrelink way I am not saying you are anything but single. Merely that they seem to be driving you down to the married rate. And please, I think CLink have gone mad at the moment. They have me down for earning income from an organization that I could not begin to get a job with because I haven't been in Australia since August 2013 and the "income" I am supposed to have earned in May 2014 came from an organization on the West Coast of Cape York. I have suggested to CLink that there is fraud occurring in my case. |
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Post by fedup on Jul 14, 2014 1:09:40 GMT 7
What annoys me is they do not reply quick enough and they do things without explanation or accountability
If we acted in the same manner,they would,stop our pensions
They move the posts all the time,one cant distinguish their rules and what is law,all about them is contradictory ,a fools paradise,left hand doesn't know what the right hand is doing etc
And they have been mad for years,it's nothing new
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Post by Denis-NFA on Jul 14, 2014 1:34:07 GMT 7
What annoys me is they do not reply quick enough and they do things without explanation or accountability If we acted in the same manner,they would,stop our pensions They move the posts all the time,one cant distinguish their rules and what is law,all about them is contradictory ,a fools paradise,left hand doesn't know what the right hand is doing etc And they have been mad for years,it's nothing new In my submission to the Senate Inquiry I am asking for a Royal Commission into how Centrelink operates. |
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Post by fedup on Jul 14, 2014 1:59:41 GMT 7
Good luck with that
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