Migrants to face cuts to pension for extended overseas trips

There are concerns proposed changes to reduce the time pensioners can spend overseas while receiving the Age Pension discriminate against people born overseas.

Older residents enjoying a game of chess

Source: GOI

Proposed federal government changes to the Age Pension could unfairly target Australians born overseas, migrant community members and NGOs believe.

With family in Israel, Russia, Georgia and the United States, Melbourne pensioner Nina Rubinstein treasures overseas travel.

Flights are expensive so her trips are infrequent.

When the grandmother, who is originally from Israel, gets the chance to visit loved ones she makes the most of it, leaving Australia for months at a time.

She was shocked when she learnt the federal government is planning to reduce from 26 to 6 weeks the amount of time pensioners can spend overseas before their Age Pension is impacted.

"I was actually horrified when I heard this was going to happen because I am older now, I want to travel at length," she said.
Migrants impacted by new pension laws
Melbourne pensioner Nina Rubinstein enjoys extended overseas trips with her family Source: Supplied
The government is proposing that from January 1, 2017 pensioners who have spent less than 35 years of their working life in Australia will have their welfare benefit reduced after six weeks of living abroad.

After six weeks overseas, the pension payment will be adjusted according to the length of time the pensioner lived and worked in Australia between the age of 16 and the pension age - which is currently 65.

For example, if someone has worked 10 years out of the standard 35 years used to calculate the pension, they will receive less than a third of the pension for that period spent overseas after the six week mark.

'Pensioners deserve better'

Ms Rubinstein is hugely relieved she just makes the 35 year cut-off, but she feels deeply for pensioners who could be impacted.

"You wait all your life to retire and go somewhere, spend time with your family or friends, travel a little bit because you didn't have a chance raising your family," she said.

"I think pensioners deserve better. They deserve to be a little bit more relaxed about getting some kind of safe income."

The Federation of Ethnic Communities' Councils of Australia says the change would discriminate against people not born in Australia.

Chairman Joe Caputo says migrants visiting sick relatives, those returning to their homeland for the first time and others taking the trip of a lifetime would be affected.

"We know that almost 40 percent of total pensioners in Australia were born overseas," he said.

"But we do not have the breakdown in terms of those who have been here for less than 35 years. So we are not quite sure about the numbers of those that will be affected by it. But we understand it will be a considerable number."

Listen to an interview with Joe Caputo from the FECCA:

'This is not about anyone rorting the income security system'

COTA Australia represents the rights and interests of older Australians.

It says it is understandable that people born overseas wish to visit their families for long periods of time and that they should not be penalised.

"This is not about anyone rorting the income security system," said Chief Executive Ian Yates.

"This is a bit of penny pinching on behalf of government. It does not save a huge amount of money over forward estimates."

The Senate Committee looking at the plan is scheduled to report on February 4th, 2016.


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3 min read

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By Phillippa Carisbrooke

Source: SBS News



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