Delay in processing pension applications by JJ Smith April 4, 2024 written by JJ Smith April 4, 2024 18 Australian Age Pension applications taking months to be processed, reports claim. Multiple New Zealanders who have moved to Australia have advised me that there is a backlog of pension applications. If you pass the income and asset tests, it’s important to apply as soon as you arrive. You can lodge an Age Pension application up to 13 weeks before you reach eligibility age (between 66.5 and 67). A claim for the age pension is meant to have a “timeliness standard” of 49 days, but in December last year, the average processing time was 91 days, up from 61 in August and 35 days in the 2021-22 financial year. Your application will be backdated to the date of your application. However, the NZ pension is way more generous and has not been income- and asset-tested. Therefore if you are not eligible for the full Australian Age Pension, you are best to wait until you have received your NZ pension for 26 weeks and then apply for the Australian Age Pension. Centrelink blames staff shortage Many aged pension claimants are waiting months for their claims to be assessed as Centrelink grapples with a staffing shortage. Centrelink currently has 34,000 age pension claims waiting to be processed, and the average processing time is 72 days. That was on February 9, 2024. I cannot find a more recent assessment of their current situation. Centrelink has been funded to hire 3,000 additional staff who are currently receiving training to ease the wait times and backlog. Source: ABC News. Hopefully, this has already happened, as it is now April, and they are trying to clear the backlog. Make sure the information you provide is complete Another factor delaying some applications is that the applicants do not supply all the necessary information or have complex financial affairs. Complex financial affairs include trusts, shares and other investments, all of which must be appropriately assessed. Sometimes, they need to get third parties to confirm the required information, which can lead to delays. Urgent cases should contact Centrelink If you are currently waiting for your application to be approved and are experiencing financial hardship, then you should visit a Centrelink office in person if possible. Please note there will be cues, so please plan ahead to wait in line. Or even better, call Centrelink International on 131 673. A visitor said they were really helpful and sorted out their issues promptly. Make your claim as smooth as possible Please ensure you have submitted all necessary information and documentation to ensure your claim is assessed as quickly as possible. You can lodge an Age Pension application up to 13 weeks before you reach the pension age of 67. First, check if you’re eligible to receive the payment. The eligibility rules also include income and asset tests. You can read more about these in my Australian Age Pension post. Incomplete paperwork is the biggest reason Age Pension claims are delayed, so please double-check that you have included everything. The information you need to provide is outlined in your claim form and includes proof of identity, residence status, income, and assets. That could include bank statements, super statements, tax returns, and statements for your shares. If you do not pass the income and asset tests If you earn more or you have assets greater than the eligibility threshold, then you are best to wait until your 26 weeks of receiving your NZ pension is up. Otherwise, your application will be backdated to when you applied, and you will be sent a bill from the NZ Department of Social Welfare. No thanks! Income test – your assessable income must be less than $63,351 if you’re a single person or $96,865 if you’re a couple. Asset test – if you’re a homeowner, singles can have up to $674,000 and couples $1,012,500. If you’re not a homeowner, singles can have up to $916,000 and couples $1,254,500. News articles I read when researching There is more information in the news articles I read when researching the delay in processing Australian Age Pension applications, which you may find helpful: 14 Feb 2024, The Guardian – Services Australia apologises over Centrelink call centre performance as age pension claims hit by huge delays. 14 Feb 2024, Your Life Choices – Age Pension applications taking months to be processed, reports claim. 9 Feb 2024, ABC News – Age pension claimants report months’ long waits as Centrelink moves to bring more staff on board. Retirement Essentials – Age Pension Eligibility, including calculator. Services Australia – Who can get it (the age pension). Read more about the Australian Age Pension Find out more about the Australian Age Pension in my post, which includes everything you need to know as an older New Zealander moving to Australia. Ages, eligibility, income and asset tests, how to apply, Australian benefits you may be able to receive, transferring your KiwiSaver and more. You might be interested in… The below posts might interest you: Become an Australian Citizen Buying a house in Australia Medicare Australia Still, got unanswered questions? If you’ve read the above content and the answer to your question isn’t there, please write a comment below and I’ll research the answer for you. Can I help you find something else? If you need advice on moving to Australia from New Zealand, I’ve created a helpful little questionnaire to point you in the right direction. It takes less than 30 seconds, so give it a go! Foreign Exchange/Money TransferMoving Company to AustraliaOpen an Australian Bank AccountWhich city to move to in Australia 19 comments FacebookPinterest JJ Smith previous post Australia Buyers Agents next post Single parent moving to Australia from New Zealand You may also like Documentation needed when moving to Australia March 25, 2024 Money – What You Need to Know February 17, 2024 Open an Australian Bank Account November 6, 2024 Foreign Exchange/Money Transfer November 6, 2024 $19,000 exchange fee shocks family January 14, 2025 Australian Tax November 14, 2024 Getting Your Tax File Number (TFN) October 15, 2025 Buying a house in Australia May 27, 2024 Australian Mortgage November 21, 2024 KiwiSaver for your Home Deposit May 28, 2023 19 comments Cherry Daly July 27, 2025 - 9:23 am Hi…I am an Australian who was born in Australia 67 years ago and lived and worked there for 50 years. I’ve lived in New Zealand for the last 18 years And applied for the Australian pension once I turned 67. I have now been waiting nine months with no Discussion or correspondence with the Australian government. I have no assets to speak of apart from my New Zealand Home which I own freehold. Can you please assure me that I will receive backpay for the time in which I have been waiting to either hear something or receive my Pension??? I rang Centrelink in Australia once and told there was a huge backlog and that was the last I heard. Thank you and I look forward to your reply. Cherry DALY Reply JJ Smith July 29, 2025 - 1:52 pm Hi Cherry, Thanks so much for your comment. I’m really sorry to hear that you’ve had no communication from Centrelink — that’s incredibly frustrating. If you’re an Australian living in New Zealand, the pension you receive depends on several factors: mainly where you’ve spent most of your working life, how long you’ve lived in each country, and where you’re living at the time you apply. As an Australian now living in New Zealand, you need to apply for NZ Superannuation, not the Australian Age Pension. I’m so sorry to be the one to tell you this — you’ve actually been eligible since you turned 65. You’ll need to apply through Work and Income New Zealand (WINZ). Given your situation, I recommend booking an appointment and speaking with someone in person. I really hope they’re able to arrange some back payment for you. To book an appointment, call WINZ on 0800 552 002 (for those aged 65+). When you go in, make sure you take a copy of your Australian pension application. WINZ can then contact Centrelink directly as part of your NZ Super application process. If you do still want or need to get in touch with Centrelink, others have told me the best way is by phone — you can call Centrelink International on 0800 441 248. Please note, I am not a financial adviser or accountant and only advise from information I have been able to find online and visitor experiences. My heart really goes out to you, Cherry. I hope you find someone helpful who can get this sorted. Warmest regards, JJ Smith Reply Cherry July 31, 2025 - 4:36 pm Hi JJ-thanks for your reply. I’ve been receiving the NZ Pension since I turned 65. I have applied for the AUST pension because I was born there and lived there for 50yrs! (Working for 35 of those years). I sent my Australian pension forms through WINZ in November last year, a month before my 67th birthday. It’s now been nine months since I applied. I did ring them and was told there was a huge backlog. I believe I will get backpay backdated to the date that I was due to receive the pension, could you confirm that please? Thank you so much for helping… Cherry Reply JJ Smith August 1, 2025 - 12:01 pm Hi Cherry, Thank you so much for your email. I’m really happy to hear that you’ve been receiving the NZ Pension since you turned 65, I had been thinking about you! Yes, you’re absolutely right. Based on the information available, if you’re eligible, your Australian Age Pension should be backdated to the date you became entitled, typically the date your application was lodged with WINZ. So in your case, you should receive back pay covering that period once your application is approved. However, just to clarify, I’m not a financial adviser, accountant, or pension specialist — I can only share insights based on the information I’ve been able to find online. I know it’s frustrating that it’s taking so long, but unfortunately, you’re not alone — delays like this have become quite common. I recently came across a helpful article from Social Security Rights Victoria that outlines what you can do if your claim has been outstanding for too long. You might find it useful: https://www.ssrv.org.au/delays-in-centrelink-processing-times-what-to-do-if-your-payment-claim-is-outstanding-for-too-long/. I hope this gives you a bit of reassurance. Reply Cherry August 1, 2025 - 5:22 pm Hi JJ-thanks heaps. I have used the contact form to lay out my case and it has been received. I’ve also said that my next step is the Commonwealth ombudsman… Cross everything… Will let you know if and when I hear anything. I really appreciate your help – thank you so much. Cherry Cherry August 5, 2025 - 7:34 pm Hi JJ… Cherry DALY here. I followed your advice and filled out one of Services Australia’s feedback forms in which I said that a nine month wait for a decision was pretty appalling. I received a phone call today telling me that my pension has been granted. The way it works is that I get my New Zealand pension and every month I get a payment of $875 Australian to top NZ my pension up to the Australian pension. I’m very happy with this outcome. The only thing I’m not happy with is that they owe me $5000 and something dollars in backpay, to my 67th birthday on 23/02/2025. but this goes to the New Zealand government to decide if they’ve actually paid me anything that they shouldn’t have and if they have they take it back out of that money. Now as far as I’m concerned all I’ve received is my New Zealand pension but it wouldn’t surprise me if they don’t find a way to try and finagle me out of some or all of it. Obviously they’re in for a fight if they try but if you have any further advice, such as who I should contact if the back payment falls through, I would be grateful. On thinking about it I assume that would be the ombudsman, whom I will not hesitate to contact if I don’t get what I’m due. Thank you so much for your support through all this, I will keep you in the loop. Cherry JJ Smith August 6, 2025 - 11:13 am Hi Cherry, Thank you so much for the update. I’m so happy for you! Well done on taking action and being so proactive. I really hope your backpay comes through quickly, it’s absolutely what you’re entitled to. Please do let me know how it all goes. Yours is such an inspiring story. Have a lovely day. Chris Hogg January 9, 2025 - 7:03 pm Hi I have lived in Australia since moving from NZ in 1994. Am I eligible for a pension in Australia? I am now 55 years old and was 24 when I moved here. Thanks Reply JJ Smith March 6, 2025 - 1:04 pm Hi Chris, I’m really sorry for not replying sooner. Your email was lost with a handful of others when I was having email problems. If you haven’t managed to find the answer, it is yes, you are eligible for the Australia pension. All NZ citizens living in Australia are. You can read about it here: https://www.staging.movingtoaustralia.co.nz/australian-age-pension/. Please feel free to email me back any further questions you have. Reply Hematlal April 9, 2024 - 10:36 am Can you advise to qualify for the Australian pension, the period of residence. The criteria of residence of 10 years during the period from 20 to 67 years of working life. Although, I am a citizen of New Zealand, I am short of 10 years as I lived in UK from 1962 to 1977. Please advise. Reply JJ Smith April 11, 2024 - 12:12 pm Hi Hematlal, Thank you for your comment. Unfortunately, I am not a financial adviser and cannot advise you on your individual circumstances or eligibility for the Australian age pension. Please use the age pension calculator on Retirement Essentials to check your eligibility: https://retirementessentials.com.au/age-pension/eligibility-calculator/. They are also able to help you if you need further advice. Reply George April 7, 2024 - 5:55 pm Hi there, We were recently granted the Australian pension (having moved from NZ) – after waiting 7 months from our date of application. We only got dealt with in this time after making formal complaints; prior to this, while on a phone call to Centrelink (one of many) it was mentioned that some people are waiting up to 10 months – this by way of explaining to us that we weren’t really an urgent case and could expect to wait much longer! We know of others who have gone through the process with similar delays. It’s almost unbelievable. Kind Regards George Reply JJ Smith April 10, 2024 - 12:53 pm Thanks for sharing your experience George. Reply Keith Prokop April 4, 2024 - 6:27 pm Hi again, and thank you for your informative newsletters. I have a question regarding the latest offering that warns people regarding processing times of Aussie pensions. I noticed that you say : “Please apply as soon as you arrive and have a backup plan in case your Australian pension is delayed. It will be backdated, and you will receive your NZ pension for 26 weeks after you’ve moved to Australia.” Does that mean that if the Aussie pension is back dated, do recipients have to pay back any NZ pension payment that they might have received during that 26 weeks once they get the back payments? Or do the two governments sort it out between themselves? Otherwise, applicants will get double payments, which seems highly unlikely. I have tried contacting Centrelink but had no luck speaking to a human! TIA. Reply JJ Smith April 5, 2024 - 12:10 pm Hi Keith, Thank you for reaching out for clarification. After I sent that newsletter I had a very informative reply from a subscriber, who gave me the answer to your question. Yes there are delay’s, but because the NZ pension is more generous than the Australian one, you want to make sure you are eligible for the Australian pension before you apply, otherwise you will be sent a bill from the NZ Department of Social Welfare. This is exactly what happened to the subscriber. If you earn more or you have assets greater than the eligibility threshold, then you are best to wait until your 26 weeks of receiving your NZ pension is up. Otherwise, your application will be backdated to when you applied, and you will be sent a bill. Income test – your assessable income must be less than $63,351 if you’re a single person or $96,865 if you’re a couple. Asset test – if you’re a homeowner, singles can have up to $674,000 and couples $1,012,500. If you’re not a homeowner, singles can have up to $916,000 and couples $1,254,500. I have updated my post to include this information, but will also add it to my Age Pension post when I have finished replying to visitor comments. Thank you so much for giving me the opportunity to set the facts straight. It can be really hard finding all the information online and I would hate to put someone wrong. Thanks, JJ Smith Reply Anonymous April 4, 2024 - 5:36 pm Hello JJ, Thank you for this, but a word of caution about your advice to apply for the pension as soon as you arrive in Australia. My wife and I arrived from NZ a year ago and applied immediately for the pension but that has proved to be the wrong thing to do. You are absolutely right about the delay in processing applications, but the pension is backdated to the day of your application. This is important, because the NZ pension is much more generous than the Australian one and Centrelink uses an assets- and income-based appraisal of what they will pay and Social Welfare is guided by Centrelink’s calculations. What this means is that NZ paid the full pension to us for the first six months ($700-odd per fortnight) that we were here, but Centrelink has determined that our assets are too great (yeah, right!) and they’re paying about $40 – yes, forty dollars per fortnight. Now NZ’s Dept of Social Welfare have decided they paid us some $7000 too much and are deducting that from the Centrelink payments. Which means that the next payment is precisely zero. All with no communication about how they do their calculations, of course! My advice would be to advise emigrants to apply the day before their six months in Australia expires. Yes, there is a huge delay in the processing, but at least they won’t have to pay it back. We have looked back through the information provided to us before we left NZ, but this little gem is missing. Just an oversight, obviously. Not! In a general sense, Centrelink is severely dysfunctional and our interactions with the organisation have been a complete and unmitigated nightmare. We are highly educated, we’re assertive, we speak English as our native language and we have had a lot of experience in being part of (as well as dealing with) bureaucracies, but Centrelink remains a mindless and opaque monster. No wonder many people simply give up. I really do think that this part of your advice is not in the best interests of people emigrating to Australia, unless they have essentially no assets and no income. Keep up the good work. Reply JJ Smith April 5, 2024 - 12:19 pm Hi, Thank you so much for your comment! Age pensions has been a really hard subject for me because I can only go off information online and visitor feedback. I have added this valuable information to the above post and I will now add it to Australian Age Pension post. You have saved a lot of Kiwis thousands of dollars and made my content complete. Thank you! Reply Lorraine April 4, 2024 - 5:29 pm Hi JJ The planned move to Oz becomes less seamless everyday! I would be interested to know if there are others planning to sell their nz home and purchase in oz without delay on arrival who rely on pension for their sole income… It is my understanding that it would be pointless applying for Australian Age pension with house proceeds in the bank ruling me ineligible due to assets! So I would have no choice but to wait to apply for pension until I have purchased a home and thereby reduced my assets to eligible level – the current waiting time is a real concern. I would value any comments you may have to share on this particular scenarios. Many thanks Reply JJ Smith April 5, 2024 - 1:39 pm Hi Lorraine, Thank you for your email. You are right, because with your NZ home you will not receive the full Australian pension, so you are better to sell and buy in Australia before applying. The current wait time is a concern, but they Australian Government have it as a priority, so hopefully the processing time will be reduced back to normal (35-49 days) within the year, but who knows. Unfortunately, I can not put you in touch with other visitors at this stage, but I am working on creating a Moving to Australia community Facebook page, so please keep an eye out for this. I will send an invite through my newsletter when ready. I hope the above has helps. Reply Leave a Reply to Chris Hogg Cancel Reply Save my name, email, and website in this browser for the next time I comment. Δ This site uses Akismet to reduce spam. Learn how your comment data is processed.
