Mark Coulton (Parkes, Deputy-Speaker, Assistant Trade and Investment Minister) Share this | Hansard source

The government recognises that, as we are a multicultural country, many Australian pensioners wish to retire overseas to their country of birth or to be with family and friends. As a result, Australia pays approximately 96,000 pensions to people residing overseas. This bill will require that, from 1 October 2019, pensioners who are aged 80 years and over and who reside permanently overseas complete and return a proof-of-life certificate in order to continue receiving the pension. This will confirm that Australian pensions are being paid only to pensioners who are still alive. The introduction of the proof-of-life process will bring Australia into line with current international practice. Many other countries around the world, such as the United Kingdom, Germany, the Netherlands, France and Italy, have processes to verify that a pensioner living overseas is still alive, including a requirement to complete a proof-of-life certificate. This measure will require approximately 25,000 pensioners living overseas who are aged 80 and over to provide a proof-of-life certificate. This process has been targeted at pensioners aged 80 and over so as to minimise the administrative burden on pensioners while still protecting the integrity of Australia's welfare system.

To help protect against fraud, the certificates will have to be verified. Pensioners overseas will have multiple options for verifying their proof-of-life certificate and a reasonable time frame in which to provide their completed and verified certificate. If a pensioner does not return their completed proof-of-life certificate within 13 weeks their pension will be suspended. If they do not return their completed proof-of-life certificate within a further 13 weeks of suspension, making 26 weeks in total, their payment will be cancelled. The measure includes safeguards to reinstate a living pensioner's payment if it is suspended or cancelled. They will have their payment reinstated if they provide a completed proof-of-life certificate and will be paid any arrears to which they are entitled. Full arrears will be paid if they provide a completed proof-of-life certificate within 39 weeks of the initial request being sent. This is a new and more-generous back pay arrangement designed for this measure.

The new proof-of-life arrangements will strengthen the integrity of the welfare system by providing a regular and robust mechanism for ensuring Australian pensions are being paid only to pensioners who are still alive. It is estimated that this measure will identify around 6,000 cases over four years where payments are still being made to people who are deceased. This will save Australian taxpayers around $219 million over the forward estimates. The measure being introduced in this bill reflects the government's ongoing commitment to maintaining a fair and sustainable welfare system for both recipients and taxpayers. I commend the bill to the House.

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