Pension Supplement Changes from September 20: What Overseas Travelling Pensioners Need to Know
Australian pensioners travelling or moving overseas will face changes to the Pension Supplement from 20 September 2026, subject to the passage of legislation.
Under the new rules, pensioners temporarily travelling overseas will be able to receive the full Pension Supplement for up to 12 weeks, doubling the current six-week period.
However, after 12 weeks overseas, the Pension Supplement will cease completely rather than continuing at the basic rate. Pensioners who move overseas permanently will also lose the Pension Supplement from the date they leave Australia.
The Department of Social Services (DSS) says the change is intended to better target the supplement towards pensioners who are based in Australia and continue to have Australian living costs.
The Pension Supplement is an additional payment that helps eligible pensioners with certain living costs. Its full rate includes a basic amount and a remaining amount covering components such as the Pharmaceutical Allowance, Utilities Allowance and Telephone Allowance.
Thousands of travellers expected to benefit
The government estimates that around 92,000 pension recipients each year travel overseas temporarily for more than six weeks.
Of these, approximately 68,000 people travel for between six and 12 weeks and are expected to receive more under the new rules than they would under the current system.
A further 24,000 recipients travel overseas for more than 12 weeks each year. They will receive the full Pension Supplement for the first 12 weeks before the supplement stops.
The government says around 95 per cent of pensioners will not be affected, as they live in Australia and either do not travel overseas or only travel for short periods.
What happens to people living overseas?
The changes will affect pensioners who already live permanently outside Australia.
About 88,000 recipients already living permanently overseas are expected to have a small payment reduction from 20 September 2026.
The government estimates that around 3,000 people each year will move permanently overseas and will have their Pension Supplement reduced from the date they leave Australia.
Importantly, the change does not mean the main pension payment will stop. The DSS says eligible pensioners will continue to receive their main pension payment, subject to the existing overseas payment rules.
Current and new rules
Under the current system, the full Pension Supplement can generally be paid for up to six weeks while a pensioner is temporarily overseas. After six weeks, the supplement reduces to the basic amount.
From 20 September 2026, the full supplement will continue for up to 12 weeks. After 12 weeks overseas, the supplement will stop completely.
For someone who moves overseas permanently, the supplement will cease on departure under the new arrangements.
The current maximum Pension Supplement, based on March 2026 rates, is $86.50 per fortnight for a single pensioner and $65.20 per fortnight for each eligible member of a couple. The basic amounts are $30.10 and $24.80 respectively. Rates are subject to indexation.
Government expects $218 million in savings. The federal government expects the measure to save approximately $218 million over five years, from 2025–26 to 2029–30, with ongoing savings estimated at about $63.8 million a year.
The DSS says the policy is designed to provide greater flexibility for pensioners taking shorter overseas trips while ending the supplement for people who live overseas permanently or remain overseas for longer periods.
The changes are scheduled to begin on 20 September 2026, subject to legislation.
Sources
DSS: Better targeting the Pension Supplement
DSS Social Security Guide: Pension Supplement rates
Services Australia: Pension payments outside Australia
Media- 7 News
