On 8 December 2016, Australia and New Zealand signed a revision to the Social Security Agreement by which pensioners who segregates their lives between Australia and New Zealand will face changes from July 2017. The revised agreement provides for the shift in the Australian age pension to 65.5 from July 1, 2017, and subsequent rises, with claimants under the agreement having to reach pension age in both countries.
Furthermore, only New Zealand working age residence – defined as residence between age 20 and pension age can be used to meet the 10-year qualifying residence requirement for disability support pension in Australia. The changes are expected to save the federal budget $16 million over the next 4 years.
