Australian pensioners receiving joint pensions from Australia and second countries such as Malta have started having their monthly payments reduced, Australian Pensioners and Superannuates Federation president Morrie Mifsud confirmed when contacted by The Malta Independent on Sunday.
Thousands of Maltese pensioners living and receiving Maltese pensions in Australia are facing the prospect of having their pensions cut by some 14 per cent, should an ongoing audit reveal they have been overpaid on their overseas pension schemes.
Maltese in Australia receiving pensions from the Maltese government can qualify for a supplementary pension payment from the Australian government, if the amount received from Malta falls below stipulated Australian pension levels.
Problems arose when it was found that such pensioners had failed to notify the Australian authorities when the foreign portion of their pensions was increased and the Australian portion of their pension was not reduced accordingly.
3,375 individuals are currently receiving Maltese pensions in Australia, amounting to an annual payout from Malta of Lm8,301,878 – an average of Lm2,460 per pensioner.
While none of Mr Mifsud’s members have been affected as yet, he confirms media reports that pensioners across the country, on a one-by-one basis, are seeing their pension payments cut as the government’s audit begins to swing into action.
“This is harassment of these people by the government. These overpayments should be avoided in the first place,” Mr Mifsud, himself a pensioner and of Maltese extraction, explains. “Aged pensioners are financially challenged, it’s a major impost to be hit with a bill for A$800.”
While Mr Mifsud had words of praise for the Australia’s health care system, he was less complimentary when it came to the Conservative administration.
“Australia has very good health services and pharmaceutical benefits, the scheme is fantastic and has been ongoing for 50 years. What makes me angry is that the Conservative government has a policy of going after the weak and more unfortunate, while major tax evaders, of which there is a high incidence in Australia, remain untouched.”
A total of 16,200 pensioners – from Malta, Italy, Germany, Holland, Ireland and Spain – are to repay an average of A$780 (Lm205) each, by having their pensions reduced by A$50 (Lm13) a fortnight until the discrepancy is rectified. The total amount to be recuperated by the Australian government runs close to A$13 million (Lm3.4 million).
The first pension cuts will affect those receiving partial pensions from Malta, Italy and Germany. Recipients of Dutch, Irish and Spanish partial pensions will be dealt with next year.