Limit overseas stay or pension will be cut

The Australian government has reduced the amount of time pensioners can spend outside Australia without having their age pension cut.

From January 2017, pensioners will have their pension reduced if they’re abroad for six weeks or more.

Currently, pensioners can stay overseas for 26 weeks and receive their full pension.

National Seniors chief executive Michael O’Neill says the move unfairly targets migrant Australians.

“The government’s decision to cut Age Pensions for people who spend more than six weeks overseas will unfairly target many Australians who like to visit their family and friends abroad.

“Reducing the time allowed overseas from 26 weeks to just six weeks is a drastic change for a significant proportion of pensioners,” according to Mr O’Neill.

“The tightening of these portability rules is a step too far, especially as 18 months ago the rules were already tightened.”

Residents who have lived in Australia longer than 35 years will continue to receive the pension even if they are away for longer than 26 weeks.

But for residents who have lived in Australia for less than 35 years (between age of 16 and age pension age), their pension will be reduced on a pro-rata basis according to the length of the pensioner’s Australian working life residence.

The cuts are due to come into effect on 1 January 2017, the same day that changes to assets-tested pensions and part pensions will come into force.

The proportion of Australians who were born overseas has hit its highest point in 120 years, with 28 percent of Australia's population – 6.6 million people – born overseas, according to recent figures by the Australian Bureau of Statistics (ABS).