Heading overseas? Centrelink and the ATO might need to know

If you’re planning an overseas holiday, especially if you currently receive Centrelink or other government payments, a little prep will help you enjoy your trip without payment surprises or tax headaches.

Government payments

Different government payments have their own rules about whether, and for how long, they’re paid while you’re outside Australia. Short trips for most families are usually fine, but longer absences can reduce, pause or stop certain payments. You must also keep meeting the usual eligibility tests (residency, income and assets) while you’re away.

For instance:

• Age Pension: Generally, you can continue receiving your Age Pension while overseas, but there may be changes to your payment rate after six weeks and after 26 weeks abroad.
• Disability Support Pension (DSP): You can receive DSP for up to 28 days in a 12-month period overseas. Extended stays may require special approval.
• Family Tax Benefit: Payments usually stop after six weeks overseas. Exceptions can apply for Defence Force or Federal Police members on designated overseas duty.
• JobSeeker and Youth Allowance: These payments typically stop as soon as you leave Australia unless you have an approved reason, such as a family crisis or medical treatment. Youth Allowance or Austudy may continue if the time overseas is an approved part of your Australian course.

So, before you book that itinerary, tell Services Australia about your travel plans. Use myGov, the app, the relevant phone line or a service centre visit to share your dates, destination and reasons for travel. If you’re seeking an approved absence, such as for part of a study course or for medical treatment, ask what proof you’ll need. Update any other changes that might affect eligibility while you’re away too, like your income, assets or care arrangements. It’s a good idea to report even short overseas trips to avoid possible overpayments that you’d need to repay, or even penalties. And remember to keep records of any approvals you get or evidence you provide.

While you’re away, keep an eye on your plans. If your return’s delayed or you decide to stay longer, let Centrelink know straight away. Australia’s border movement data is shared with Services Australia, so unreported travel changes can trigger a review or overpayment. When you get home, check that any paused payments restart and your rates look right.

Tax considerations

The tax side is simpler. A short holiday doesn’t usually change your Australian tax residency, so nothing special happens to your tax just because you travelled. Your Centrelink payments are taxed the same way they are at home, and you’ll lodge your next tax return as usual. There’s no extra “travel tax”, and if a payment pauses while you’re overseas, you’ll just have less taxable income for that period.

Longer absences are different: if you’re going to be overseas for many months or moving, talk to us about residency, reporting arrangements and student loan obligations. For example, Australians with HELP/HECS who expect to be overseas for six months or more generally have to notify the ATO and keep contact details current.

Source: www.servicesaustralia.gov.au/going-overseas 
www.ato.gov.au/individuals-and-families/coming-to-australia-or-going-overseas