Customers assessed under pre 1 July 2014 Australian Working Life Residence (AWLR) rules 061-01120000

Special 'savings' provisions apply to customers who were either:

• Outside Australia immediately before 1 July 2014. This special provision will continue to apply as long as the person remains outside Australia, unless they return to Australia for a period of 26 weeks or more, or
• Inside Australia temporarily. Customers who normally reside outside of Australia and were in Australia temporarily when the rules changed. This special provision will continue to apply as long as the person left Australia on or before 29 December 2014, unless they return to Australia for a period of 26 weeks or more

These customers are able to continue to receive payment under the same conditions that they were subject to on their last departure before 1 July 2014.

A customer who is covered by this 'savings' provision can return to Australia for a visit and then return overseas an unlimited number of times without losing their 'savings' provision as long as they do not remain in Australia for 26 weeks or more in a single visit.

In other words, if a customer covered by this 'savings' provision returns to Australia for 26 weeks or more on or after 1 July 2014, they will lose their 'savings' provision. If they then decide to return overseas, they will be subject to the portability rules that apply at the time.

It is important that customers currently covered by this 'savings' provision contact Centrelink International Services (CIS) if they plan to return to Australia. CIS will ensure the customer is given accurate information about the possible effect on their payment if they decide to return.

This 'savings' provision is also applicable to many customers paid under an international agreement as the portability rate provisions for these customers have also changed.

An additional 'savings' provision also applies for customers receiving a Comparison Rate under an international agreement who were inside Australia on 1 July 2014.These customers are able to continue to receive payment under the same conditions that they were subject to immediately before 1 July 2014.

These customers will cease to receive the benefit of this 'savings' provision if they:

• leave Australia, (either temporarily or permanently) or
• move to an 'inside Australia' (direct deduction) rate, or
• move to an autonomous assessment, or
• cease to be entitled to payment

Customers receiving a Comparison Rate and saved from 1 July 2014 changes will have the comparison assessment coded manually on the Residence Savings (RSS) screen.

The savings provisions may apply to all customers receiving the following payments:

• Age Pension
• Disability Support Pension (DSP)
• Parenting Payment Single (PPS)
• Carer Payment (CP)

Note:

• Wife Pension (WP) and Widow B Pension (WidB) customers who transferred to Age Pension on 20 March 2020 retained their savings provisions
• Bereavement Allowance (BVA) was eligible for the pre 1 July 2014 ‘savings’ provisions. BVA ceased in March 2020. As BVA was not an ongoing payment, and customers were not transferred to another payment, there are no longer any BVA customers with the 1 July 2014 ‘savings’ provisions

The savings provisions can only be utilised by customers payable outside Australia indefinitely under either domestic or international agreement assessment, except for the New Zealand Agreement. All other payments have limited portability under existing portability legislation.

Under the existing portability rules there were a number of exemptions from being paid a proportional rate of pension. Most of these exemptions were removed with the change in law in September 2000 (for example, an Age Pension customer granted before 2 July 1986). However, customer protections under the 20 September 2000 provisions will continue to apply.

Customers who are payable outside Australia indefinitely, are usually paid at a proportional rate after 26 weeks absence from Australia, although some international agreements may apply proportionality at a different point in time. Residence in Australia between 16 years and Age Pension age is used to determine a person's Working Life Residence (WLR). Note: customers receiving Age Pension, DSP and CP travelling to New Zealand are paid under special rules using their working age residence. These special rules remain unchanged from 1 July 2014.

Customers who departed Australia before 1 July 2014, or are 'saved' from the 1 July 2014 AWLR changes can generally continue to receive the maximum means tested rate of pension if they have 300 months (25 years) or more AWLR.

From 1 July 2014, the maximum means tested rate of payment requires a person to have 420 months (35 years) or more AWLR with the following exceptions.

If the customer is paid using the agreement with Greece the maximum WLR is:

• 300 months (25 years) for customers who were Australian residents at the commencement of the agreement, or
• 528 months (44 years) for customers who were not Australian residents at the commencement of the agreement

If the customer is paid using the agreement with the Republic of North Macedonia, the maximum WLR is:

• 420 months (35 years) for customer who were Australian residents at the commencement of the agreement, (300 months (25 years) if 'saved' under the 1 July 2014 portability provisions), or
• 528 months (44 years) for customers who were not Australian residents at the commencement of the agreement

From 1 July 2014, customers paid Age Pension or DSP under an international agreement ceased to be able to use their partner's AWLR, unless 'saved' from the 1 July 2014 portability rate changes.

Customers in receipt of CP or WP under an international agreement prior to 1 July 2014 were able to commence using their own AWLR from that date, if favourable to do so. Customers granted or who transfer to a payment under an international agreement after this date will use their own AWLR, unless 'saved' from the 1 July 2014 AWLR changes.

From 1 July 2014, customers granted or who transfer to PPS under an international agreement as a widowed person will continue to be paid a rate using their deceased partner's AWLR.

Wife Pension (WP) or Widow B Pension (WidB) customers who transferred to Age Pension on 20 March 2020 retained their ‘savings’ provisions. These customers will continue to be paid a rate using their deceased partner’s AWLR.

Any customer returning to Australia must have a 'Client has returned/is returning from overseas. Call in to office' (XOB005) letter issued. This letter has an option available to ensure that Centrelink correctly advises of any disadvantage (loss of 'saved' status) caused by the customer remaining in Australia for more than 26 weeks.

Age Pension or Disability Support Pension (DSP) customers who:

• reside outside Australia, and
• are temporarily in Australia saved under the 1 July 2014 portability 'savings' provisions, and
• are unable to depart due to unforeseen circumstances,
• may be considered for an extension of their portability savings period and retain their 'savings' provisions after 26 weeks.

It is very important to ensure that correct information is given to the customer about a potential discretionary portability savings extension. Not providing the information or giving incorrect information can be financially damaging to the customer and may lead to a claim under the Compensation for Detriment caused by Defective Administration (CDDA) scheme. There are only certain staff at Centrelink International Services (CIS) with the appropriate delegation who can make this decision.

When a customer or their nominee or agent contact Services Australia about extending their portability savings period, ensure that current contact details are recorded.

To qualify for an extension of the portability savings period beyond 26 weeks, the unforeseen circumstance preventing the departure from Australia must generally have occurred since their return, but before the customer has lost the portability savings at 26 weeks. If the customer has not returned to Australia, they are unable to request an extension.

Centrelink International Services (CIS) is responsible for all decisions to grant or reject an application for a discretionary extension.

The discretion to extend the portability savings period so the customer does not lose their portability savings after being in Australia for more than 26 weeks, applies only if the:

• customer is receiving Age Pension or Disability Support Pension (DSP), and
• customer is residing in another country, and
• is saved under the 1 July 2014 portability 'savings' provisions, and
• customer is in Australia temporarily, and
• customer cannot leave within 26 weeks of return, and
• customer is not able to leave because of a specified extreme event or emergency situation that occurred during the limited portability period and prevents their planned departure within that period

Note: a discretionary decision cannot be considered for customers 'saved' under the 1 July 2014 portability savings provisions who permanently reside in Australia.

The portability savings period may be extended under Item 6 of Schedule 4 of the Social Services and Other Legislation Amendment Act 2014 or Subclause 128(1) of Schedule 1A of the Social Security Act, due to:

• a serious accident involving the person or a family member of the person
• an illness of the person or a family member of the person, which is serious
• the hospitalisation of the person or a family member of the person
• the death of a family member of the person
• the person's involvement in custody proceedings in Australia
• a legal requirement for the person to remain inside Australia in connection with criminal proceedings (other than criminal proceedings in respect of a crime alleged to have been committed by the person)
• robbery or serious crime committed against the person or a family member of the person
• a natural disaster in Australia
• a public health crisis affecting Australia

The relevant event must have occurred or begun during the first 26 weeks inside Australia.

An extension must be to a specific date. There is no limit on the period, but it should be the minimum time before the customer expects to be able to depart Australia and should generally not exceed 3 months.

If the customer is still unable to depart by the agreed end date of the extension, they can request a further extension. Even if the situation is not expected to change for a known period, for example 6 months, the extension should be reviewed regularly to ensure that nothing has changed.

If a person remains inside Australia after the end of their extension period:

• their portability savings will cease, and
• they will be assessed under current portability rules when they depart Australia

If a customer wants to be assessed for a portability extension, refer them to Centrelink International Services (CIS).