Pensioners living abroad will reportedly have to prove they are still alive, under a federal government plan to claw back welfare benefits flowing to the dead.
Pensioners living overseas will have to provide a “proof of life” certificate every two years if they want to continue to receive welfare benefits.
The federal government wants to stop taxpayers’ money being paid to dead people, with the measure to be announced in Monday’s mid-year budget update.
Social Services Minister Paul Fletcher said the government could be paying pensions to 6000 Australians who were living abroad when they died.
It is estimated ceasing those payments could save the federal budget $150 million over four years.
Mr Fletcher said while the most likely explanation was Australian pensioners living overseas had died, some cases could be fraud.
“Whatever the reason, we have a duty to taxpayers to make sure the Australian government is not paying pensions to people who are no longer alive,” he said.
“Until now the Department of Human Services has largely relied on the voluntary reporting of the death of a pensioner by a family member or friend.”
Mr Fletcher says there are almost 100,000 Australian pensioners living abroad, with almost all of them receiving the age pension.
The requirements will come into affect from July 1 next year, with pensioners living overseas to be sent a letter informing them of the changes.