Pensions

Contributed by Danny Shaw and Dianne Anagnos and current to 1 September 2005

THE AGE PENSION

To qualify for the age pension, a person must be:

• a man aged at least 65 or a woman aged at least 62 and a half; and
• living in Australia on the day they lodge their application, unless they are claiming under an international agreement (Social Security (Administration) Act s.16(6)).

The age pension age for women

The age pension age for women is gradually being increased to bring it in line with the male eligibility age of 65. Women should check the current age criteria with Centrelink.

Residence requirements

Applicants must generally have been residing in Australia as an Australian resident either:

• for a continuous period of not less than 10 years, or
• for a continuous period of five years which, together with other periods, adds up to 10 years (Social Security Act s.43(1)).

EXEMPTIONS

Applicants who have a qualifying residence exemption (such as those who hold permanent refugee or specified humanitarian visas) will qualify immediately for the pension provided they satisfy all other conditions.

RESIDENCE IN CERTAIN OTHER COUNTRIES

Residence in certain countries with which Australia has a reciprocal agreement may count towards Australian residence.

THE DISABILITY SUPPORT PENSION

The disability support pension is dealt with in s.94 of the Social Security Act. To qualify for the pension, a person must have:

• an impairment rating of 20 points or more under impairment tables in Schedule 1B of the Social Security Act; and
• a ‘continuing inability to work’ due to that impairment (s.94).

What is a ‘continuing inability to work’?

Under the Act, the impairment of itself must prevent the person from doing any work for at least two years, and:

• either prevent them from undertaking educational or vocational training during the next two years, or
• make it unlikely that they could be equipped within the next two years to do work for which they are currently unskilled, even if they could undertake such training.

WHAT IS ‘WORK’?

For social security purposes, work means employment for at least 30 hours per week at award wages or above.

‘EDUCATIONAL OR VOCATIONAL TRAINING’

For social security purposes, educational or vocational training does not include a program designed specifically for people with physical, intellectual or psychiatric impairment.

FACTORS NOT TAKEN INTO ACCOUNT

In determining a person’s ‘continuing inability to work’, factors such as the availability of work and training in a local labour market are disregarded, unless the person is over 55.

Residence requirements

To be eligible, a person must have been:

• an Australian resident for any 10 year period (or a continuous period of five years, plus other periods which together add up to 10 years);or
• an Australian resident when they became unable to work, or
• a dependent child of an Australian resident when they became unable to work.

People with permanent refugee and specified special humanitarian visas will also meet the residence criteria for the pension.

Blind age and disability support pensioners

Age and disability support pension entitlements for people classified as blind for the purposes of the Social Security Act are not subject to the pension income or assets tests, except for rent assistance. Partners of blind pensioners are subject to the ordinary pension income and assets tests (ss.55(b), 117(c), (d)).

CARER PAYMENT (ADULT)

To qualify for a carer payment (adult), someone must personally provide constant care for a disabled adult, generally in the home of the person being cared for (Social Security Act s.198(3)). The carer must also satisfy the pension income and assets test.

The person receiving care

A person will qualify for carer payment where:

• the person receiving the care has a physical, intellectual or psychiatric disability; and
• that person will have the disability permanently or for an extended period.

THE ADULT DISABILITY ASSESSMENT TOOL

Eligibility is assessed by assigning scores using a set of tables called the adult disability assessment tool (s.38C(3)), which is also used for determining eligibility for the carer allowance (adult).

PENSION REQUIREMENTS

The person receiving the care must either:

• be getting a full or part Centrelink or Department of Veterans' Affairs pension; or
• be ineligible for a pension either because of the qualifying residence requirements or because of the level of their personal income and assets.

INCOME AND ASSETS TEST

The person receiving the care must also meet the special care receiver income and assets test.

Residence qualifications for the carer

Carer payment is subject to the two-year newly arrived residents waiting period.

EXCEPTIONS

The waiting period does not apply to holders of:

• special need relative or carer visas
• refugee and humanitarian visas and their family members (s.201AA).

CARER PAYMENT (CHILD)

To qualify for a carer payment (child), a person must personally provide constant care for:

• a ‘profoundly disabled child’; or
• two or more ‘disabled children’; or
• a ‘disabled adult’ and a ‘dependent child’.

Tables are not used in the assessment of eligibility for carer payment (child).

The care must generally be provided in the home of the person receiving it (s.198(3)).

Residence qualifications for the carer

Residence qualifications for the carer are the same as for applicants for the carer pension (adult) (see above).

Breaks in the continuity of care

For both types of carer payment – adult and child – the carer can, without losing payment:

• stop giving care for up to 63 days in a calendar year; and
• undertake training, education, or paid or unpaid work, so long as the cessation of care does not exceed 20 hours a week (s.198(AC)).

Payment can also be made for up to 63 days in any calendar year while the person receiving care is in hospital, where the carer continues to provide care (s.198AA).

Permanent admission to an institution

Where the person receiving care is admitted permanently to institutional care, carer payment continues to be payable for 14 weeks (s.198AAA).