Updated
How much super do Australians need to retire overseas?Moneysmart, the consumer website of the Australian Securities and Investments Commission (ASIC), gives a rule of thumb of around 70% of working-life income for retirement, and states that there is no…
Can Australian super be accessed while living overseas?Moving overseas is not a condition of release for superannuation, so Australian citizens and permanent residents who leave Australia cannot withdraw their super until they meet a standard condition of…
How far does Australian retirement income go in Thailand, Poland and Malaysia?The maximum basic rate of Age Pension for a single person living outside Australia long term is A$29,520.40 a year from 20 September 2026, according to Services Australia. For a couple who are both el…Section 01 · Rate after 26 weeks
How long can Age Pension recipients stay overseas before their rate changes?
Age Pension recipients can stay outside Australia for up to 26 weeks before their rate depends on how long they were Australian residents, according to Services Australia1. A recipient with 35 years or more of that residence keeps the same rate after 26 weeks, while someone with less than 35 years receives a lower rate.
The Age Pension can be paid overseas for any length of time, on a temporary or permanent absence, provided the recipient remains qualified2.
Australian working life residence is the time a person was an Australian resident between age 16 and Age Pension age, whether or not they were working3. Age Pension age is 674.
After 26 weeks, the pension rate can be reduced for a recipient with less than 35 years of Australian working life residence5. The calculation is based on the number of months of Australian working life residence, plus one month, divided by 420 months, or 35 years.
In the Services Australia example, a recipient with 10 years of residence receives about 10/35ths of the usual rate1. A recipient with no working life residence, such as a person who first came to Australia after reaching Age Pension age, has a proportional rate of nil5.
A transitional rule applies to some recipients who were already overseas on 1 July 2014, when 25 years of residence was enough to keep the full rate5.
Under the transitional rule, the rate remains unchanged if all four conditions apply1:
- the recipient was receiving the Age Pension or another Australian social security payment while living outside Australia on 1 July 2014
- the recipient had 25 years or more of Australian residence
- the recipient has not been in Australia for more than 26 weeks since 1 July 2014
- the recipient has been getting the Age Pension for the whole time.
The rates and payment schedule for people who live outside Australia long term are covered in How much Age Pension is paid to people living outside Australia?
Section 02 · Travel rules
What changes to the Age Pension after 6, 12 and 26 weeks overseas?
The first change to an Age Pension payment comes after six weeks outside Australia, when the Energy Supplement stops and the Pensioner Concession Card is cancelled1. A temporary trip of less than six weeks leaves the payment unchanged.
The Pension Supplement stops after 12 weeks of temporary absence1. Before 20 September 2026, the supplement fell to its basic amount after six weeks, and that reduced amount continued for the rest of the absence6.
The change was announced in the 2026-27 Budget6. The Department of Social Services (DSS) estimated that around 92,000 pension recipients travel overseas temporarily for more than six weeks each year. Of these, around 68,000 travel for between six and 12 weeks and receive the Pension Supplement for longer under the new rule. Around 24,000 travel for more than 12 weeks and receive a higher amount for the first 12 weeks.
Around 88,000 pension recipients live permanently overseas6.
About 75,550 people received an Australian pension under an international social security agreement at 30 June 20257.
At 26 weeks, Rent Assistance stops for a recipient travelling for a reason other than overseas study, and the base rate can become proportional2.
Where a recipient cannot return because of unforeseen circumstances such as serious illness, a public health crisis or a natural disaster, the payment may not reduce or stop1. The Pensioner Concession Card is cancelled after six weeks of temporary absence even in that case, and a replacement can be issued on return if the recipient remains qualified2.
A recipient who leaves Australia to live in another country is paid an outside-Australia rate from the day of departure1. The Energy Supplement and Pension Supplement stop and the Pensioner Concession Card is cancelled on that day.
For a single pensioner living outside Australia, the typical total rate rose from $1,130.40 to $1,135.40 a fortnight on 20 September 20268. The base rate increased by $35.10 and the $30.10 basic amount of the Pension Supplement was removed, resulting in a net increase of $5.00 a fortnight.
The social security agreement between Australia and New Zealand can affect payments to a recipient who travels to New Zealand1. Payments may change from the date of arrival if the recipient moves to New Zealand or plans to stay for more than 12 months. For shorter stays, the change applies after 26 weeks in New Zealand.
| Age Pension changes by time outside Australia, temporary absence, from 20 September 2026 | ||||
|---|---|---|---|---|
| Time outside Australia | Base rate | Pension Supplement | Energy Supplement and Pensioner Concession Card | Rent Assistance |
| Less than 6 weeks | Unchanged | Paid in full | Paid and current | Paid |
| 6 weeks to less than 12 weeks | Unchanged | Paid in full | Stops and cancelled | Paid |
| 12 weeks to 26 weeks | Unchanged | Stops | Stops and cancelled | Paid |
| More than 26 weeks | Proportional to working life residence if less than 35 years | Stops | Stops and cancelled | Stops |
| Leaving to live in another country | Outside Australia rate | Stops on departure | Stops and cancelled on departure | Stops where no rent is paid in Australia |
Source · Services Australia, When you leave Australia if you get Age Pension; Department of Social Services, Social Security Guide 7.1.2.
Section 03 · Residence
How is Australian residence decided for Age Pension recipients who travel?
Age Pension recipients remain Australian residents for pension purposes while Australia is their usual country of residence9. They must also be Australian citizens, permanent visa holders or protected Special Category visa holders from New Zealand. An overseas trip is treated as temporary while the recipient continues to reside in Australia10.
Services Australia considers six factors when deciding whether a person lives in Australia9:
- where the person lives and who they live with
- whether they have family in Australia or overseas
- their employment, business or financial ties in Australia and overseas
- their assets in Australia and overseas
- how often and how long they travel outside Australia
- anything else considered relevant.
A recipient who returns to Australia briefly every 26 weeks may no longer be considered to be living in Australia10. This can affect their full pension rate and other payments.
A person who already splits retirement between Australia and another country and has not yet claimed the Age Pension may be eligible depending on where they usually live when they make the claim11. A claimant whose primary place of residence is a country without a social security agreement with Australia cannot be granted the Age Pension while living there.
To qualify, a claimant generally needs at least 10 years of Australian residence in total, including at least five years without a break12. When the claim is made, the claimant must be living in Australia, physically present in Australia and considered an Australian resident. Different rules can apply to claims made under a social security agreement.
The rules for moving overseas permanently are covered in Can you live overseas and still get the Australian Age Pension?
Section 04 · The two-year rule
What is the Age Pension two-year rule after returning to Australia to live?
A former Australian resident who returns to live in Australia and is granted the Age Pension within two years of becoming a resident again cannot receive the pension while overseas during that two-year period, according to the DSS Social Security Guide13.
The two-year period starts on the day the person became an Australian resident again13. The rule is intended to discourage people from returning to Australia only to claim a pension and take it overseas.
There is no waiting period to claim the Age Pension after returning to live in Australia, provided all eligibility requirements are met12. A person who intends to return for a set period, such as two years, would generally not be considered to have resumed living in Australia13.
A pension is suspended on departure if the recipient leaves within the two-year period13. It can be restored if the person returns to Australia within 13 weeks of the suspension.
After 13 weeks overseas, the pension is cancelled and a new claim is needed on return13. A short temporary absence while the person remains an Australian resident still counts towards the two-year period.
Two exceptions apply13:
- travel to a country with a social security agreement, where the pension can be paid under that agreement
- an absence funded under the Medical Treatment Overseas Program, including when accompanying a person receiving treatment.
A person paid under an agreement who returns to live in Australia and moves to domestic payment arrangements without a break in payment is not subject to the two-year rule13.
Australia has social security agreements with 32 countries, including 25 in Europe14. An agreement with Uruguay was signed on 26 August 2025 and is being implemented. Australia’s agreement with the United Kingdom ended on 1 March 2001.
Section 05 · Tax residency
How is Australian tax residency decided when you split retirement overseas?
The main test of Australian tax residency is whether a person lives in Australia for tax purposes, according to the Australian Taxation Office (ATO)15. A person who does not meet the resides test may still be an Australian resident if they meet one of three other tests: the domicile test, the 183-day test or the Commonwealth superannuation test.
The ATO considers several factors under the resides test15:
- physical presence
- intention and purpose
- family
- business or employment ties
- maintenance and location of assets
- social and living arrangements.
Under the domicile test, a person whose permanent home by law is in Australia is a resident, unless their permanent place of abode is outside Australia15.
Under the 183-day test, a person who is in Australia for more than half the income year is a resident15. An exception can apply if their usual home is outside Australia and they do not intend to live in Australia.
If a person stops being an Australian resident for tax purposes during an income year, they are taxed at resident rates and receive a pro-rata tax-free threshold for the part of the year they were an Australian resident15.
Foreign residents do not pay the Medicare levy15. From the date residency ends, foreign-source income is not included in the Australian tax return. Australian interest, dividends and royalties are subject to withholding tax as a final tax.
| Age Pension residence and tax residency compared, Australia | ||
|---|---|---|
| Feature | Age Pension residence (Services Australia) | Tax residency (ATO) |
| Main question | Whether Australia is the person’s usual country of residence | Whether the person resides in Australia (the resides test) |
| Status requirement | Australian citizen, permanent visa holder or protected Special Category visa holder | None. Tax residency does not depend on citizenship or a visa |
| Factors considered | Home and household, family, employment, business and financial ties, assets, frequency and length of travel | Physical presence, intention and purpose, family, business or employment ties, assets, social and living arrangements |
| Further tests | None stated beyond the factors | Domicile test, 183-day test, Commonwealth superannuation test |
Source · Services Australia, Residence descriptions (Age Pension); Australian Taxation Office, Your tax residency.
Section 06 · Medicare
Does Medicare cover Australian retirees who spend time overseas?
Medicare does not cover people while they are overseas16. Reciprocal Health Care Agreements with 11 countries can cover some medically necessary care, including emergency care, for people who live in Australia and visit those countries17.
The 11 countries are Belgium, Finland, Ireland, Italy, Malta, the Netherlands, New Zealand, Norway, Slovenia, Sweden and the United Kingdom17.
According to Services Australia, these agreements do not replace travel insurance17.
A person who has lived overseas for more than 12 months may need to re-enrol in Medicare after returning to Australia18. An Australian citizen who returns after more than five years overseas must re-enrol with a current passport and two documents dated within the last six months that show they are living in Australia19. To enrol online, a person must live in Australia.
Section 07 · The home
How long is a vacated home exempt from the Age Pension assets test?
A principal home remains exempt from the Age Pension assets test for up to 12 months while the pensioner is temporarily away20. The pensioner is treated as a homeowner over that period.
The exemption applies even when the absence is expected to last more than 12 months20. After 12 months, the home is no longer the principal home.
The 12-month period can be extended where a pensioner is overseas and cannot return because of circumstances beyond their control20. If the pensioner returns to live in the home within 12 months and later leaves again, a new 12-month period can begin.
A brief return made only to extend the exemption does not count as genuine occupation of the home20.
Proceeds from selling the home during the exemption period that will be used for a new home are not counted as an asset for 24 months, and for up to 36 months in some cases20.
For a single pensioner living outside Australia, the non-homeowner assets limit is $267,000 higher than the homeowner limit8. From 20 September 2026, the limits are $978,500 for a non-homeowner and $711,500 for a homeowner. The same $267,000 difference applies to residents and couples.
| Age Pension assets limits for a part pension, residents and non-residents, from 20 September 2026 | ||
|---|---|---|
| Category | Single ($) | Couple combined ($) |
| Resident, homeowner | 745,7508 | 1,121,0008 |
| Resident, non-homeowner | 1,012,7508 | 1,388,0008 |
| Non-resident, homeowner | 711,5008 | 1,070,0008 |
| Non-resident, non-homeowner | 978,5008 | 1,337,0008 |
Source · Department of Social Services, Social Security Payment Parameters, 20 September 2026 indexation.
Section 08
Splitting retirement overseas: quick answers
Can an Australian pensioner live overseas and keep the Age Pension?
An Australian pensioner can live overseas and keep the Age Pension for any length of time, provided they remain qualified. After 26 weeks outside Australia, a recipient with less than 35 years of Australian residence between age 16 and Age Pension age generally receives a lower, proportional rate.
How long can a pensioner be overseas before the Pension Supplement stops?
From 20 September 2026, the Pension Supplement stops after 12 weeks of temporary absence from Australia. It stops from the date of departure if a pensioner leaves Australia to live in another country.
Are there exceptions to the Age Pension two-year rule after returning to Australia?
There are two exceptions to the two-year rule, which stops payment during overseas absences for a former resident granted the Age Pension within two years of resuming residence in Australia. The exceptions are travel to a country with a social security agreement where the pension can be paid under that agreement, and an absence funded under the Medical Treatment Overseas Program.
How is the Age Pension worked out after 26 weeks overseas?
After 26 weeks outside Australia, the rate depends on Australian working life residence, which is the time a person was an Australian resident between age 16 and Age Pension age. A recipient with 35 years or more keeps the same rate, and one with 10 years receives 10/35ths of the usual rate in the Services Australia example.
When do returning Australians need to re-enrol in Medicare?
Returning Australians may need to re-enrol in Medicare if they have been living overseas for more than 12 months. An Australian citizen who moves back after more than five years overseas re-enrols with a current passport and two documents dated within the last six months that show they are living in Australia.
Does a pensioner remain a homeowner while temporarily overseas?
A pensioner remains a homeowner, and their principal home remains exempt from the Age Pension assets test, for up to 12 months while they are temporarily away. After 12 months, the home is no longer the principal home, although the period can be extended where the pensioner is overseas and cannot return because of circumstances beyond their control.
References
- Services Australia, When you leave Australia if you get Age Pension · servicesaustralia.gov.au ↑ b c d e f g h
- Department of Social Services, Social Security Guide 7.1.2, Payments with unlimited portability · guides.dss.gov.au ↑ b c
- Department of Social Services, Social Security Guide 1.1.A.340, Australian working life residence (AWLR) · guides.dss.gov.au ↑
- Services Australia, Who can get Age Pension · servicesaustralia.gov.au ↑
- Department of Social Services, Social Security Guide 7.2.2, Proportional portability rate & AWLR · guides.dss.gov.au ↑ b c
- Department of Social Services, Better targeting the Pension Supplement (2026-27 Budget) · dss.gov.au ↑ b c d
- Services Australia, Annual Report 2024-25 · servicesaustralia.gov.au ↑
- Department of Social Services, Social Security Payment Parameters, 20 September 2026 indexation · dss.gov.au ↑ b c d e f g h i j
- Services Australia, Residence descriptions (Age Pension) · servicesaustralia.gov.au ↑ b
- Department of Social Services, Social Security Guide 7.1.8 Portability definitions · guides.dss.gov.au ↑ b
- Services Australia, Retiring overseas · servicesaustralia.gov.au ↑
- Services Australia, Residence rules for Age Pension · servicesaustralia.gov.au ↑ b
- Department of Social Services, Social Security Guide 7.1.6, Portability for former Australian residents · guides.dss.gov.au ↑ b c d e f g h
- Department of Social Services, International social security agreements · dss.gov.au ↑ b
- Australian Taxation Office, Your tax residency · ato.gov.au ↑ b c d e f g
- Services Australia, Before you leave Australia · servicesaustralia.gov.au ↑
- Services Australia, About reciprocal health care agreements · servicesaustralia.gov.au ↑ b c
- Services Australia, When you’re returning to Australia from overseas · servicesaustralia.gov.au ↑
- Services Australia, Enrolling in Medicare if you’re an Australian citizen · servicesaustralia.gov.au ↑
- Department of Social Services, Social Security Guide 4.6.3.60 Exempting the principal home - temporary vacation of property · guides.dss.gov.au ↑ b c d e f
- Services Australia, Payment schedule and rates for people outside Australia: Age Pension · servicesaustralia.gov.au