Clients aged 80 and over who receive a Centrelink pension overseas need to complete a proof of life certificate every two years to continue receiving their payment.

 

Background

From 20 December 2019, clients aged 80 or over who receive a Centrelink payment overseas are required to provide a proof of life certificate every two years.

 

When the new law was introduced, the explanatory memorandum1 stated that administrative data showed a disparity in the death rate of Centrelink pensioners aged 80 years and above residing overseas, compared to pensioners in Australia. The Department advised the disparity suggested that Centrelink was not being notified in all cases, or in a timely manner, when a person dies overseas.

 

Impacted clients

The requirement to provide a proof of life certificate applies to clients who:

  • have reached 80 years of age, and
  • were continuously absent from Australia throughout the previous two years, and
  • are receiving any of the following social security payments:
    • age pension
    • disability support pension
    • carer payment

 

Proof of life certificate

Centrelink must notify impacted clients at least once every two years that they are required to provide a proof of life certificate.

 

Impacted clients must provide a proof of life certificate within 13 weeks of being given a notice by Centrelink.

 

A proof of life certificate must:

  • include a statement that the client is alive, and
  • be signed and dated by the client, or another person if the form allows for another person to sign on the person’s behalf provided that one or more specified requirements are met, and
  • be signed, dated by an authorised certifier and include a statement that the authorised certifier:
    • has sighted the person in their physical presence (video conferencing will not comply with this requirement), and
    • has verified the identity of the person, and
    • is satisfied that the person is alive.

 

Authorised certifiers

The following people are recognised as authorised certifiers in the person’s place of residence:

 

a person who, under the law of or applying at that place, is currently authorised or entitled to practise in that place as:

  • a legal practitioner, or
    • a notary public, or
    • a medical practitioner, or
    • a police officer
  • a judge, magistrate or justice
  • a registrar or deputy registrar.

 

Timing of proof of life certificate

A proof of life certificate, must be completed and certified during the 13-week period from the date Centrelink issues a notice. However, if a client enters Australia within this 13-week period, the client is not required to give Centrelink a proof of life certificate.

Failure to provide certificate – suspension and cancellation of payment

Where the client does not return a compliant proof of life certificate or enter Australia within the 13 week period from the date of the notice, the client’s payment will be suspended for a period of up to 13 weeks. If they do not then provide the proof of life certificate or enter Australia within the 13 week suspension period, the client’s payment will be cancelled.

 

 

 

Endnotes

1.  Social Services Legislation Amendment (Overseas Welfare Recipients Integrity Program) Act 2019, Explanatory Memorandum to Bill

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Disclaimer

The information contained in this update is based on the understanding Avanteos Investments Limited ABN 20 096 259 979, AFSL 245531 (AIL) and Colonial First State Investments Limited ABN 98 002 348 352, AFSL 232468 (CFSIL) has of the relevant Australian laws as at the article date. As these laws are subject to change you should refer to our website at www.cfs.com.au or talk to a professional adviser for the most up-to-date information. The information is for adviser use only and is not a substitute for investors seeking advice. While all care has been taken in the preparation of this document (using sources believed to be reliable and accurate), no person, including AIL, nor CFSIL, accepts responsibility for any loss suffered by any person arising from reliance on this information. This update is not financial product advice and does not take into account any individual’s objectives, financial situation or needs. Any examples are for illustrative purposes only and actual risks and benefits will vary depending on each investor’s individual circumstances. You should form your own opinion and take your own legal, taxation and financial advice on the application of the information to your business and your clients.

 

Taxation considerations are general and based on present taxation laws and may be subject to change. You should seek independent, professional tax advice before making any decision based on this information.

 

AIL and CFSIL are also not a registered tax (financial) adviser under the Tax Agent Services Act 2009 and you should seek tax advice from a registered tax agent or a registered tax (financial) adviser if you intend to rely on this information to satisfy the liabilities or obligations or claim entitlements that arise, or could arise, under a taxation law.