Customers overseas on 20 September 2000 061-01030000

'Saved' customers returning to Australia on or after this date may be affected by changes to the portability rules effective from 1 July 2004, which will override these savings. Contact Centrelink International Services (CIS) for more information.

All Centrelink customers who were overseas immediately before 20 September 2000 and who have not returned to stay in Australia for greater than 26 weeks have their continuing portability determined using the rules in force at that time. These are known as 'pre 20 September 2000 portability rules'. Customers departing Australia on or after 20 September 2000 have their portability determined under the current rules.

A customer can return to Australia and then return overseas an unlimited number of times without losing their savings provision as long as they do not remain in Australia for more than 26 weeks during any return. If the customer returns to Australia, stays for more than 26 weeks and leaves Australia again, they will lose their savings provision and will be subject to the current portability rules. It is important that customers currently paid under the pre 20 September 2000 portability rules contact Centrelink International Services (CIS) for accurate information about the possible changes to their payments if they plan to return to Australia at all and may possibly go overseas again in the future.

Although the savings provisions did apply to all customers, only Age Pension and Disability Support Pension customers are still affected by the savings provisions. This is because all other payments stopped or had limited portability under the pre 20 September 2000 portability rules and if they have not returned to Australia since, would no longer be entitled to payment.

The savings provisions described above do not generally apply to customers paid under an International Agreement because the portability provisions for these people are governed by the Agreement.

Under the pre 20 September 2000 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 (for example, an Age Pension customer granted before 2 July 1986). Prior to 20 September 2000, any customer without an exemption could continue to receive payment for 12 months of an overseas absence before cancellation or proportionalisation of their pension. From 20 September 2000, proportionalisation generally occurs after 26 weeks absence from Australia.

Another benefit under the pre 20 September 2000 portability rules is that, in certain circumstances, a customer could use their partner's (or deceased partner's) working life residence if it was higher than their own which meant they could receive a higher rate of pension. From 20 September 2000, customers must use their own working life residence.

Add-ons (for example Rent Assistance, Pharmaceutical Allowance) are not payable to customers paid under pre-20 September rules while they are outside Australia and are only paid in limited circumstances to these customers if they are temporarily returning to Australia.

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

• reside outside Australia, and
• are temporarily in Australia saved under the 20 September 2000 portability savings provisions, and
• are unable to depart Australia 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. Certain Service Officers at Centrelink International Services (CIS) are the only staff with the delegation to 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 the 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 20 September 2000 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 20 September 2000 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.