When changes to your pension or payment come into effect

This page provides information about how the date of notification of a change in your circumstance may impact your pension. 

This information is for recipients of Service Pension, Social Security Age Pension, Income Support Supplement and Veteran Payment.

Pensions and payments are calculated on a daily basis

The pension or payment you receive every fortnight is calculated on a daily basis. 

For example, a change in your income or asset value mid-way through a pension period may change your pension or payment from that day. This means that the amount paid will reflect your actual entitlement for the fortnight you are paid. To get the most out of these arrangements, you must tell us:

• about changes in your circumstances that affect your pension or payment, within 14 days of the change (or 28 days if you live overseas or receive remote area allowance)
• the date the change in your circumstances occurred

Reductions or cancellations

If you advise of a change in your circumstances and it results in a reduction or cancellation to your pension or payment, the reduction or cancellation will be reflected on the next payday after we process the change.

Change notified within 14 (or 28) days

When a change in your circumstances reduces or cancels your pension or payment, the reduction or cancellation applies on the 15th day (or 29th day if you live overseas or receive remote area allowance). This is shown in the diagram below, using 14 days.

Change notified outside 14 (or 28) days

When a change in your circumstances reduces or cancels your pension or payment, and you let us know about the change more than 14 days (or 28 days if applicable) after it happens, the reduction or cancellation applies from the date of the change. This is shown in the diagram below, using 14 days.

Overpayments of pension or payment

If a change you tell us about results in a reduction or cancellation to your pension or payment from the day of the change (because we were told about the change more than 14 days, or 28 days if applicable, after it happened), the reduction/cancellation will result in an overpayment of pension or payment. In that case, we would recalculate your pension or payment and let you know the best way to repay the overpaid amount.

It is possible that even if you tell us about a change within 14 days (or 28 days if applicable) of it happening, we may not be able to recalculate your pension or payment in time for your next payday. In this case we would have to recover any money that you have received over and above what you were entitled to.

You would never have to repay money that you are lawfully entitled to. We will always do our best to ensure your changes are processed as quickly as possible, to avoid overpayments accumulating. However, it is possible to incur an overpayment, and we believe you should be fully informed about the possibility of this happening.

For more information go to How we recover overpayments.

Obligations

Do tell us about changes to your circumstances within 14 days (or 28 days if applicable).

Do tell us the date the change occurred.

Don’t tell us about changes that won’t affect your pension.