A YourLifeChoices reader wants to know how Centrelink values your home when you travel overseas for an extended period.
Qin: I have a rare disease and there is no medicine available in Australia. I am going to China to take Chinese medicine and acupuncture. It is said that if you receive a pension overseas for more than 12 months, your own housing will be re-evaluated. Please let me know if this is true.
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A: For Centrelink purposes, your primary residence is not considered an asset under the income and assets tests.
To become eligible for the Age Pension, Centrelink values your income and assets to see if you are entitled to any payments. These are called the income and assets tests.
However, your primary residence is exempt from this ‘test’. But not under all circumstances, the main one being if you no longer reside in your home for more than 12 months. This doesn’t matter if you are overseas or just travelling around Australia.
If you have left the home to give or receive care, this period is extended to 24 months.
After that time, Centrelink may include the property under its assets test and your payments may be reduced.
It sounds like Qin is planning to live overseas for a while, in which case he will have to inform Centrelink. If you plan to leave Australia longer than six weeks you must let Centrelink know as it may affect your payment. You may lose some supplements and your method of payment may change.
After six weeks, the pension supplement will drop to the basic rate and any energy supplements will stop.
And don’t think you can sneak out of the country and dodge the authorities. The immigration department will inform Centrelink when you leave the country and when you return.
While Qin is overseas, the easiest way to contact Centrelink is to create a myGov account and link it to Centrelink.
For more advice about your rights and responsibilities, it’s probably a good idea to talk to a financial information services officer before any extended travel. Find out more here.
You can also call Centrelink’s Older Australian helpline on 132 300 between 8am and 5pm, Monday to Friday.
If you have any questions about Centrelink, you can email [email protected]
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