Retirees who are considering making a cruise ship their permanent home may see their pension entitlements reduced.
Centrelink will change its payment rules from 20 September – and while the change benefits retirees taking longer overseas holidays, those planning to live on cruise ships long-term could still see their government support reduced.
Cruising has gained popularity among Australians seeking a getaway, with a record 1.45 million Australians taking a cruise holiday in 2025.
This is partly due to packages offered by cruise companies, with some including meals, accommodation, on-board medical care, cleaning, activities, internet access and other amenities.
However, from September 20, retirees considering making a cruise ship their permanent home may risk having their Pension Supplement payments stopped.
The Pension Supplement is an additional payment made on top of the base pension amount.
The supplement is designed to assist with everyday expenses like utilities, phone, internet, and medicines.
Under the new rules, if a retiree travels outside Australia temporarily, they can receive the full Pension Supplement for up to 12 weeks instead of the current six-week period.
After 12 weeks, Centrelink will stop paying the supplement.
If a retiree leaves Australia to live overseas, Centrelink will stop paying the supplement as soon as they leave.
Domestic cruising
Retirees planning cruises within Australian waters will generally not have their Age Pension affected.
Payments will be paid as usual, as the retiree remains eligible and circumstances remain the same.
For pension purposes, domestic cruises are usually classified similarly to other forms of travel within Australia.
International cruising
Retirees planning cruises outside of Australian waters will be classified as having left the country.
For Age Pension recipients, the key factor is the holiday length.
Those on a cruise longer than 12 weeks will continue to receive the Age Pension, but the Pension Supplement will be stopped.
For a cruise shorter than 12 weeks, retirees will continue receiving both the Age Pension and Pension Supplement, as long as the retiree is still eligible.
But retirees planning to be away for longer than 6 months may have their pension reduced depending on their Australian Working Life Residence, with different Age Pension rules applying.
Cruising overseas? Know the pension rules
Aussies planning a retirement getaway should notify Services Australia of their intention to travel before setting sail.
If your Centrelink online account is connected to MyGov, you can inform Services Australia about your travel plans through their online service.
If you can’t access your online account, contact the Older Australians line at 132 300 or visit your nearest service centre.