Alan Tudge (Aston, Liberal Party, Minister for Education and Youth) Share this | Hansard source

I move:

That this bill be now read a second time.

This bill amends the Social Security Act 1991 to provide greater flexibility in the portability rules for pensions to assist Australian pensioners who travel to or from Australia and are affected by unforeseeable circumstances beyond their control.

Normally, pensioners can travel overseas for an indefinite period and continue to receive their pension. However, after 26 weeks overseas, their rate of pension is recalculated based on their Australian working life residence (AWLR). Generally, 35 years AWLR is required to maintain the full basic rate of pension. After 26 weeks, those who have less than 35 years AWLR will receive a proportional rate based on their AWLR. Supplements, such as rent assistance, also cease after 26 weeks.

Currently there is no discretion in the legislation to extend this 26-week period if a pensioner goes overseas and is unable, due to reasons beyond their control, to return home as planned.

This bill will provide a permanent discretionary power to grant pensioners a portability extension if they are temporarily overseas and affected by emergency circumstances, such as accident, illness, natural disaster or public health crisis. This extension ensures their rate is not reduced after 26 weeks.

The proposed changes will also allow pensioners grandfathered under previous portability changes in 2000 and 2014 to apply for a portability extension if they ordinarily live overseas but temporarily return to Australia and are unable to return home due unforeseen emergency circumstances. The extension ensures they can maintain their grandfathered portability entitlements.

Last year, the government introduced temporary arrangements to enable pensioners stuck overseas or in Australia due to COVID-19 to be granted portability extensions. This bill builds on these arrangements by maintaining the discretion to provide extensions and expanding the range of allowable circumstances in which an extension can be granted.

This bill will also benefit those pensioners each year who travel overseas temporarily and subsequently are away from home due to unforeseen emergency circumstances beyond their control, such as accident, illness, natural disaster or a future pandemic. I commend this bill to the House.

Debate adjourned.

See this speech in context