Portable Pensions !

Centrelink has just had a decision reversed that will have vast future implications and which throws the spotlight once again on the Disability Support Pension ( DSP ).  The intention of the DSP was to provide for those suffering from either a medical condition or resulting from an accident during the period that they are unable to work and earn a living. There is the expectation that eventual recovery will return them to the workforce.  Consequently, one of the requirements that apply to this pension is the right of Centrelink to periodically have progress towards that goal measured.

It is within the rules applying to all pensions that recipients may take overseas holidays but Centrelink must be made aware of these absences.  It seems that one person receiving the DSP was in the habit of living mainly in Macedonia - and consequently Centrelink ruled that this breached the rules - and cancelled payments.

An appeal was launched with the Administrative Appeals Tribunal and when it delivered it's findings it found for the DSP holder.  It seems that this pension is now "portable "and there is no restriction on the recipient abandoning Australia and living almost permanently overseas - and still be funded by an Australian disability pension.

It is not hard to contemplate the opportunity this ruling will deliver to some of our new citizens whose former homes were in countries where a vast majority of the population lives on two dollars a day.   Should they have the misfortune to suffer a work accident in Australia that qualifies them for the DSP, the generosity of their Australian pension would allow them to live like kings should they elect to return to their former home.

Setting the level of the DSP is entirely relevant to the cost of living in Australia. It is hardly fair that this Australian pension should apply when the pensioner moves to a place with a vastly cheaper standard of living - and this difference is being exploited.  It seems that a pension loophole has been opened - and for some that will signal "opportunity ".

Many Australians have reservations about the conditions that apply to gaining Australian citizenship. Many applicants claim they are seeking asylum from persecution in their former country, and yet soon after citizenship has been granted they are taking a holiday back to their former country, apparently immune from past dangers because of the protection given by their new passport.

It seems that the rules that apply to all forms of pensions have evolved rather than work to a predetermined plan.  Rulings from bodies such as the Administrative Appeals Tribunal get tacked on by way of amendments - and in many cases they have unintended consequences.  Perhaps a year or so from now we will find that this DSP decision has resulted in a flood of people taking advantage of the ruling and creating an imbalance in the Australian economy.

After all, if gaining the right to hold an Australian passport is worth chancing life and limb by coming here in a leaky boat, surely it would be a reasonable expectation that the successful would continue to live in this country !