Retiring in France

Q:

Q: I IMMIGRATED to Australia In 1966 and my partner in 1972. We both worked in Australia until I was 57 when we went cruising aboard our sailing boat. We left Australia in 2004 and now want to settle in France.

We are dual passport holders (Australia and UK) and we continue to lodge tax returns and pay tax on interest and dividends in Australia. All our assets remain in Australia and they are under the assets test limits. We intend to use them to purchase a home in France. Do we have to return to Australia in order to make a claim for the Australian Pension?

Our expert is Centrelink.

A: Normally, to be paid an Australian Age Pension you must be an Australian resident, i.e. living in Australia permanently and in Australia on the day that you lodge your claim. You also need to satisfy any other requirements for payment; for example, you must be Age Pension age, have lived in Australia for at least 10 years, and you and your partner's income and assets must be under the limits.

However, you may be able to receive an Age Pension while living overseas if you are in a country with which Australia has a social security agreement. Australia has social security agreements with a number of countries. A comprehensive list is available on the Centrelink website: www.centrelink.gov.au. Unfortunately, at present, Australia does not have a social security agreement with France.

If you are granted the Age Pension in Australia you can generally still be paid if you then decide to go to another country. However, if you cease to reside in Australia and then return again for residence and claim Age Pension, you may not be paid if you leave Australia within two years (unless you go to an agreement country).

The rate of Age Pension payable outside Australia is usually paid as a proportion based on how long you have lived in Australia between the ages of 16 and Age Pension age. This proportional rate may only apply from after you have been absent from Australia for 26 weeks (or may apply immediately if you use an agreement to be paid). The proportion is usually based on a maximum of 25 years. For example, if you have lived in Australia for 10 years between the ages of 16 and age pension age, your proportion would be 10/25 multiplied by the normal income and asset tested rate of Age Pension.

Where to find out more

For further information about moving or travelling outside Australia, claiming payments while outside Australia, or reciprocal agreements with other countries, call Centrelink International Services on 13 16 73.