PENSION GUIDELINES for British Expatriates  No 6
Brought to you with the compliments of British Australian Pensioner Association 
 “Australia Tops Up my UK Pension”

Many people think the above statement is true, and therefore freezing of pensions does not matter. They think that if their UK pension is indexed each year the Australian age pension will be reduced by the same amount as the UK pension is indexed.

This is simply not true.
 To illustrate this, let’s take an example of a man who earned a full basic pension, and then retired to Australia in 1994. His basic pension will be £57.60 and frozen at that. If he has no other income but has an Australian pension the sums will be as follows (based on September 2006 Australian pension rates, including Pharmaceutical Allowance):

UK pension

£57.60 per week

Dollar amount per fortnight

$288.00 per fortnight *

Means test threshold

$128.00 per fortnight

Excess (288 - 128)

$160.00

Reduction in Australian pension (40% of excess)

$64.00
Australian pension, single rate, with P.A. $530.90 per fortnight

Total pension (288.00 + 530.90 - 64.00)

$754.90

* assuming par conversion rate £1 = $2.50

If the freezing regime ended, the sums would be as follows:

UK pension

£87.30 per week

Dollar amount per fortnight

$436.50 per fortnight *

Means test threshold

$128.00 per fortnight

Excess (436.50 - 128)

$308.50

Reduction in Australian pension (40% of excess)

$123.40
Australian pension, single rate, with P.A. $530.90 per fortnight

Total pension (436.50 + 530.90 - 123.40)

$844.00

So you would be $89.10 per fortnight better off.
These figures are based on the single rate.  The figures for married couples will be different,
but the pattern will be the same. You will be better off !

You would not lose your pensioner card nor any of the fringe benefits that go with the pension.  Even if you have a SERPS pension and the indexation takes you over the upper limit of $1455.25  and as a result you lose your pensioner card, you will still be eligible for the Commonwealth Seniors Health Card and many of the fringe benefits.
Campaign for pension justice. Oppose the freezing regime.

BAPA disclaims responsibility for the accuracy of this information.

British Australian Pensioner Association Inc 
Box 35 Christies Beach, South Australia 5165
                                                                                                                                                                                                                               April 2007