Welfare Recipient Patterns Among Migrants
Welfare-recipient rates for persons aged 65+
The welfare-recipient rates for persons aged 65+ are quite different to the pattern described above for migrants aged under 65, because their rates increase with time spent in Australia rather than the reverse.
Table 1 shows that the rate for all overseas-born persons arriving in Australia over the years 1991-1996 was 56 per cent, compared with 84.5 per cent for those arriving between 1986-1990 and 80.9 per cent for those arriving prior to 1986.
The main reason for this pattern is that the Age Pension, which is the dominant source of assistance paid by the Commonwealth to those in the 65+ category, is not available to migrants until they have lived in Australia for at least 10 years.
This restriction raises the question as to why 56 per cent of those aged 65+ in 1996 who arrived in Australia between 1991 and 1996 and 84.5 per cent of those arriving between July 1986 and 1990 in the 65+ age group were receiving a welfare payment. Table 7 provides a basis for exploring this issue.
About half of the recipients in each of these two arrival groups were receiving the special benefit, Wife or Carers Pension, Widows Pension or some other payment. The large 'other' category for July 1986-1990 arrivals is mainly comprised of the Widow Pension Class B. This pension is being phased out [5], but is still available to women aged 50+ as of 1 July 1987 who subsequently became a widow. A substantial minority of those arriving after 1986 was nevertheless in receipt of the Age Pension.
Table 7 - Welfare recipient rates by major pension or benefit type for overseas-born persons aged 65+, by time of arrival in Australia
Most of those receiving the Age Pension, even though in Australia for less than 10 years, did so under one of the 12 pension agreements the Australian Government has signed, with such countries as Great Britain, Ireland, New Zealand and Italy. These agreements provide for reciprocal Age Pension payments.
The Australian Government pays Age Pensions to former residents of each of the Agreement countries (with varying levels of contribution from the Agreement countries) regardless of date of arrival in Australia. The other group not affected by the ten year rule on the Age Pension are those who entered Australia under the Humanitarian visa category.
[5] No new grants of Widow's B Pension have been made since 20 March 1997. Existing recipients continue to receive this pension until transferred to Age Pension.