Age Pension recipients will be able to spend more time overseas before their payments are reduced, under a change quietly included in the Federal Budget papers released last night.
From September 20, 2026, pensioners will be able to travel overseas for up to 12 weeks before the pension supplement is impacted, doubling the current limit of six weeks.
After 12 weeks overseas, the supplement will stop. For those who move overseas permanently, it will stop immediately on departure.
The pension supplement is an extra payment on top of the base Age Pension, designed to help cover everyday costs such as utilities, phone, internet and medicine.
It is currently $86.50 per fortnight for single recipients and $65.20 each for couples.
“The Government understands that pensioners who travel overseas for short periods often continue to have everyday living costs in Australia, like energy, phone and internet bills,” the Department of Social Services said.
“That’s why we’re doubling the time they can spend overseas from 6 to 12 weeks before the Pension Supplement is affected, benefitting 92,000 people.”
The government estimates around 68,000 pensioners who travel overseas for six to 12 weeks each year will receive higher payments as a result.
About 24,000 people who travel for longer than 12 weeks will still receive the supplement for the first 12 weeks of their trip.
However, around 88,000 people who already live permanently overseas will see payments reduced under the change, while about 3,000 new overseas movers each year will lose the supplement immediately.
The measure is expected to save $218 million over five years, with ongoing savings of about $63.8 million annually.
The change was included in a broader budget handed down by Treasurer Jim Chalmers, which also included reforms to tax settings and spending commitments.
While no direct Age Pension increases were announced, the budget does include measures that may affect older Australians.
This includes $5.9 billion to reduce the cost of medicines through new Pharmaceutical Benefits Scheme listings, covering treatments for conditions such as cancer, cystic fibrosis and chronic kidney disease.
There is also $449.3 million allocated to fund a respiratory syncytial virus (RSV) vaccine on the National Immunisation Program, making it free for patients.
A further $3.7 billion has been committed to expand aged care services, including an extra 5,000 aged care beds each year.
The government has previously announced it will remove the private health insurance rebate for people over 65 from April 1, 2027, a change expected to increase insurance costs for older Australians.
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