Reading time: 3 minutes
On this page
To access the Age Pension, reaching a certain age is necessary but not sufficient. As well as the age eligibility and income and assets tests, you also need to pass residency rules to be eligible to receive a full or part Age Pension from the Australian government.
Generally, you must be an Australian citizen and in Australia on the day you claim the Age Pension. But that’s the tip of the residency rules iceberg.
Age Pension residency requirements
First, you must be an Australian resident to qualify for the Age Pension. The Department of Human Services classifies you as being an Australian resident if:
- You are an Australian citizen
- You hold a permanent resident visa, or
- You hold a protected special category visa (this is a visa that was granted to New Zealand citizens who arrived in Australia prior to 2001).
If passed, the Migration Amendment (New Skilled Regional Visas) Regulation 2019 would define holders of these visa subclasses as Australian residents:
- Subclass 491 – Skilled Work Regional (Provisional)
- Subclass 494 – Skill Employer Sponsored Regional (Provisional).
As well as being an Australian resident, you must have been an Australian resident for at least ten years (and at least five of those years must have been consecutive).
Are there any exceptions?
The short answer is yes.
If you have lived in countries that Australia has an international social security agreement with, then this may count towards the ten-year Australian residency requirement. For example, Australia has an arrangement with New Zealand that their citizens who are Australian residents can receive an Australian Age Pension, provided they also meet the age requirement and they pass both the income and assets tests.
Refugees, former refugees and their family members are also exempt from the residency requirements for the Age Pension if they meet all the other eligibility requirements.
Can you claim the Australian Age Pension if you live overseas?
Yes, potentially, but leaving Australia may affect your payment. However, the amount you’ll receive depends on:
- How long you’re away from Australia
- Whether your income and asset levels change while you’re away
- Whether you receive your pension through an international social security agreement that Australia has with another country (such as New Zealand). Depending on the details of the specific agreement, the pension amount you receive could vary.
There will be no change to your Age Pension payment if you’re just overseas temporarily, on a short holiday for example.
However, if you are planning on going overseas for longer than six weeks, perhaps for an extended holiday or moving overseas permanently, then you must contact Services Australia (via Centrelink online through your myGov account) to inform them.
If you leave Australia for more than 26 weeks, the amount of Age Pension you receive will depend on how long you were an Australian resident between the ages of 16 and the date you reached your Age Pension age. The amount generally won’t change if you were an Australian resident for 35 years or more, regardless of whether you worked or paid tax during that time. If you were an Australian resident for a shorter period, your Age Pension payment will be reduced proportionally.
This 35-year Australian residency period was increased from 25 years on 1 July 2014, except if you were living in Greece or New Zealand (where special age pension arrangements apply). However, if you were living in another country prior to 1 July 2014 and have continued to do so, you still qualify for the 25-year Australian residency rule.
It should be noted that if you return to Australia for longer than 26 weeks and leave again, the current 35-year residency period will apply.
Have there been any recent changes to the residency rules?
Yes. From 1 January 2022, if you receive the Widow Allowance and Partner Allowance you can no longer automatically transfer to the Age Pension when you reach Age Pension age. Instead, you will need to make a claim for the Age Pension to continue receiving social security payments.
And from 20 December 2019, Age Pension recipients living overseas and aged over 80 must complete a ‘proof of life’ certificate every two years to continue receiving their pension. Those affected will be notified in writing by Services Australia and have 13 weeks to respond before their pension is suspended. If they don’t provide a certificate within a further 13 weeks, their pension will be cancelled.
Residency requirements are just one of the criteria you must meet to be eligible for an Australian Age Pension. The others are age and passing both the income and assets tests.
You may still be eligible to claim an Australian Age Pension if you move overseas, provided you satisfy certain conditions. You must inform Services Australia via Centrelink online through your myGov account if you’re receiving the Age Pension and you go overseas for longer than six weeks, as this could have an impact on your entitlements.
The information contained in this article is general in nature.