A pensioner’s predicament
Ann Smith never expected seven years living in Australia meant she’d have to ask them for a pension. Now New Zealand’s welfare authorities are threatening to cut her off if she doesn’t.
A Christchurch pensioner says Work and Income is ‘‘bullying’’ her into homelessness.
Ann Smith, 67, has been battling with the government department for the past two years over an Australian pension application she refuses to complete.
Work and Income has told Smith her superannuation (NZ Super) payments ‘‘will be stopped’’ if she does not fill out the 40-page overseas pension entitlement form. Anyone who Work and Income believes may be entitled to overseas pensions must apply, and Smith lived in Australia, where the pension is meanstested, for seven years from 1984.
‘‘There’s information in here like my personal bank account, my credit agreement for my car – they want the account number, the amount owing, who it’s with, any insurance policies or money I have over my pension; whether my husband’s alive or dead,’’ she said. ‘‘There are 60 or 70 questions, plus you’ve got to open a bank account so that the money can technically go into it.’’ Smith said she did not feel comfortable giving her personal details to a foreign government, which required a far greater level of detail in its application form. She also stands to gain nothing from doing it. Smith receives about $400 each week from her pension, her only income. Any potential payment from the Australian Government would abate what she receives from her New Zealand superannuation.
But Work and Income said it was just doing its job by enforcing a law it did not set.
Justine Cornwall, seniors and international policy general manager, said the agency had ‘‘been doing everything we can’’ to support Smith.
‘‘We appreciate this process may be onerous for her but the requirements are set out in legislation.’’
The Social Security Act required all who may be entitled to an overseas pension to apply.
It was introduced in 1996, about five years after Smith returned to New Zealand.
If a person refused to apply for any overseas pension they may be entitled to, the act gave Work and Income authority to refuse to grant, suspend or cancel NZ Super, Cornwall said.
‘‘This is not an action we take lightly. ‘‘We work hard to ensure fairness for people and make sure everyone that comes to us receives their full and correct entitlements, but a person does have to fulfil their responsibilities to enable us do this.’’
Kevin Murray, an advocate for people like Smith, said he thought New Zealand’s policy needed to change.
The Ministry of Social Development and Centrelink in Australia already shared information under the Closer Economic Relations Agreement (CER), which could be adapted to alleviate such issues.
‘‘It could be done administratively and seamlessly through the CER rather than putting the onus back on the people, especially if they’ve been here for such a long time and were in Australia for such a short period of time,’’ Murray said.
‘‘There are protocols already established with the two departments talking to each other, so why don’t they just clarify the protocols to include this?’’
According to the Australian Department of Human Services website, someone must have lived in the country for at least 10 years to be eligible for the pension. Smith lived there for seven.
What’s the difference?
Unlike New Zealand, Australian superannuation is income-tested, meaning there were ‘‘a lot more hoops to jump through’’ for applicants, Murray said.
Such hoops include acknowledging authorities may contact people who know you in Australia, asking whether you have any life insurance payments ‘‘that can be cashed in’’ and details of term deposits, joint accounts under any name or managed investments.
People must tell Centrelink if they have given away cash or sold any assets or property for less than its value. None of this is required in New Zealand.
The Australian pension application also requires applicants to submit up to 32 different supporting documents, depending on answers to specific questions.
The New Zealand application requests up to five, all of which relate to proof of identity or bank account details.
Australian applicants may have to provide documents proving funeral service contracts, statements from schools confirming dependent children’s fulltime enrolment, tax returns, payslips and copies of contracts for personal loans.
Work and Income gave Smith a final notice last month, which said her NZ Super would be cut if the information was not completed by July 3.
On Murray’s advice, she submitted the forms with only basic information.
She did not know whether her pension would be cancelled or if the information would suffice.
Smith said she would be ‘‘kicked out’’ of her flat and her car repossessed if her pension was cut. She would default on her funeral cover and her children could not afford the cost if she were to die.
Her husband, Tony, died in 2011 when another motorist crossed the centre line in Hampden, north of Dunedin, and crashed into the truck he was driving.
That meant she had no other financial support if her NZ Super was cancelled.
‘‘If I don’t stick up for myself, who’s going to?
‘‘[Work and Income] are making me feel guilty for getting my pension . . . if I didn’t get the pension, they’d have no reason to contact me.’’
‘‘[Work and Income] are making me feel guilty for getting my pension.’’ Christchurch widow Ann Smith