24 Jan

Heading overseas? Centrelink and the ATO might need to know

If you are planning an overseas holiday, particularly if you receive Centrelink or other government payments, a small amount of preparation can help you avoid disrupted payments and unnecessary tax complications.

Government payments

Government payments have specific rules about whether, and for how long, they can be paid while you are outside Australia. Short trips are often manageable, but longer absences can reduce, pause or stop certain payments. Importantly, you must continue to meet the standard eligibility requirements, including residency, income and assets, while you are away.

Examples include:

Age Pension: Generally payable while overseas, however your rate may change after six weeks and again after twenty six weeks abroad.
Disability Support Pension: May be payable for up to twenty eight days in a twelve month period overseas. Longer periods may require specific approval.
Family Tax Benefit: Typically stops after six weeks overseas. Limited exceptions may apply, including certain Defence Force or Federal Police overseas duties.
JobSeeker Payment and Youth Allowance: Generally stop when you leave Australia unless you have an approved reason, for example a family crisis or medical treatment. Youth Allowance or Austudy may continue where overseas study is an approved part of an Australian course.

What to do before you travel

Before you book your itinerary, notify Services Australia of your travel details, including dates, destination and reason for travel, using myGov, the Centrelink app, the relevant phone line, or a service centre. If you are requesting an approved absence, such as for medical treatment or course requirements, ask what evidence is required and keep copies of any approvals or documents submitted.

It is also prudent to update any changes that may affect your eligibility while you are away, such as income, assets, or care arrangements. Even for short trips, reporting helps minimise the risk of overpayments, repayments, or penalties.

While you are away and on return

If your travel plans change, particularly if your return is delayed or you extend your stay, notify Centrelink promptly. Australia border movement data is shared with Services Australia, and unreported changes can trigger reassessments or overpayments. When you return, check that any paused payments resume and your rates reflect your circumstances.

Tax considerations

For most Australians, a short overseas holiday does not change Australian tax residency. In practical terms, nothing special happens for tax simply because you travel. Centrelink payments are taxed in the usual way, and you lodge your next tax return as normal. There is no separate travel tax. If a payment is paused while you are overseas, you will generally have less taxable income for that period.

Longer absences are different. If you expect to be overseas for an extended period or you are relocating, you should obtain advice on tax residency, reporting requirements, and any related obligations. This includes Higher Education Loan Program and Higher Education Contribution Scheme borrowers, where Australians who expect to be overseas for six months or more generally need to notify the Australian Taxation Office and keep their contact details current.

Getting it right from the start

Whether you are planning a holiday or a longer stay overseas, it is important to cover the basics before you depart to avoid Centrelink payment interruptions and unnecessary ATO issues.

Our team can help you confirm what to report, what to keep on file, and any longer-term considerations.