Planned changes to the pension could ruin your holiday! 202



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When my parents-in-law come to visit from the UK, they typically come for at least six weeks – usually longer. This makes sense for so many reasons – for one it gives them a good chance to spend time with the grandkids they only see every couple of years, as well as their son. It also gives them plenty of time to recover from the long flight, go off on their own to have a “proper holiday” and it costs them a lot less than flying to and fro.

Many grandparents with family overseas follow suit, choosing to spend long time stretches rather than short periods overseas. International grey nomads are also increasingly common.

But anyone planning a long overseas trip could soon have to take into account a cut to their pension if the federal government plans are approved. The proposed change would mean that the time limit a person can travel overseas before their pension is affected would be reduced from 26 weeks to just six weeks.

The government is proposing that from the first of January 2017 pensioners who have spent less than 35-years of their working life in Australia have their welfare benefit reduced after six weeks of living abroad, reports SBS.

The pension would then be adjusted according how long the person lived and worked in Australia between the age of 16 and 65.

Chief Executive of Council of The Ageing, Ian Yates, says it’s understandable that many people want to spend longer periods of time overseas, visiting family or travelling.

“This is not about anyone rorting the income security system. This is a bit of penny pinching on behalf of government. It doesn’t save a huge amount of money over forward estimates.”

Would this change to the pension affect your travel plans?

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  1. So now they are holding us captive in Australia 🙂 well at least they are not putting us on Naru..YET

    5 REPLY
    • Yes. I laughed also. But it is worrying for people that have family overseas. I know if my family lived overseas I would like to visit for longer than 6 weeks. It would take me that long to recover from jetlag.

    • Yes. I laughed also. But it is worrying for people that have family overseas. I know if my family lived overseas I would like to visit for longer than 6 weeks. It would take me that long to recover from jetlag.

  2. Who can afford an overseas holiday on the pension???

    10 REPLY
  3. I don’t like the sound of this. Our neighbours have their in laws from Canada stay with them for months in our summer. They are escaping the Canadian winter. This will make it difficult for families to spend time together.

    4 REPLY
    • Glen Guest I realise that it does not affect people coming to Australia. I was just pointing out that a lot of people around the world stay with relatives in other countries for a considerable length of time. Rudeness is not a nice trait in anyone.

    • you should read it also they are not talking,about those coming here they are spending their money here ,its the people going too stay with them in our winter and the stupid Liberal government taking money off those going abroad, which is not on and they will find that out next election.

  4. Again the honest ones get targeted.There are dishonest people that actually live overseas and claim our pension.Surely the govt would know the difference.Proof of return date home should b sufficient

  5. They are trying to keep the money we are taxed for pensions in our own country. Rather than pensioners going OS and spending it there.

    5 REPLY
  6. Most over 60’s have worked paid taxes and helped Australia become the great place it is today. After work should be the time to enjoy life and receive acknowledgement for decades of toil. Scrooge is alive in Australia now!! What is the incentive to work for a better life for young and old? Discrimination on grounds of age or gender,is illegal in this country, unless you are the Prime Minister who is seemingly above the law. Disgraceful.

    1 REPLY
  7. I can’t say I can see the point of this if people are only going overseas for 2-3 months in any one year. I don’t see that the governments would save a huge amount of money. The problem I see is people receiving full Australian pensions and living permanently in another country. How does that work? Okay, maybe some part pension but why should Australia finance a lifestyle that is permanently outside the country and more than likely residing with family anyway with reduced expense? Wouldn’t that save a larger amount of money that the governments are always trying to say they need?

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