Politics

Pensioners must prove they are still alive or risk losing their payments

Dec 13, 2018

Under changes, people aged over 80 will need to provide a 'proof of life' certificate every two years. Source: Shutterstock.

Aussie pensioners who have retired overseas will now have to prove that they are still alive every two years or risk having their payments stopped.

Anyone over the age of 80 who is living abroad and claiming the Age Pension will now be required to supply a ‘proof of life’ certificate, after it was discovered that 6,000 people living in other countries had continued to receive the welfare payments even after death.

The government announced the rule change on Thursday, with Minister for Families and Social Services Paul Fletcher confirming those affected will receive a letter from the Department of Human Services in the second half of 2019.

“We estimate 6,000 cases will be identified of Australians living overseas, who were formerly lawfully receiving a pension but who have now died, where taxpayers’ money is continuing to be paid out,” Fletcher said.

“The most likely explanation is that many Australians who were living overseas on a pension have died – but that has not been made known to the Government and we are continuing to pay their pension.

“In some cases it could be fraud. In others, it could be that the former Australian pensioner’s family incorrectly think that they remain entitled to receive the pension formerly paid to their loved one.”

Describing the new system as “simple and fair”, Fletcher said the change will bring Australia in line with other countries including the United Kingdom, Germany, France and Italy who already have systems in place to identify whether a pensioner living abroad is still alive.

He added: “We have a duty to taxpayers to make sure the Australian Government is not paying pensions to people who are no longer alive.”

Previously the government had relied on the friends and family of pensioners to voluntarily report the death to the Department of Human Services.

Fletcher added that there are around 96,000 Australian pensioners living overseas, with most receiving the Age Pension. The new measure is expected to save taxpayers about $150 million over four years.