Who Does New Zealand Depend on for State of the Art Medicine?

29 August 2016

PDF version [321KB]

Harriet Spinks and Michael Klapdor
Social Policy Section

This quick guide has since been updated on 13 Febraury 2020.

Under various arrangements since the 1920s, there has been a free catamenia of people between Australia and New Zealand. Historically, migration flows across the Tasman have been large in both directions, but since the 1960s more New Zealanders than Australians take called to cantankerous the Tasman to alive. In 2013–14, the number of New Zealand permanent settlers who came to Commonwealth of australia was 27,274. As at December 2015, there were an estimated 634,560 New Zealand citizens present in Australia (although many of these would have been short-term visitors, and not resident in Australia).

Under the Trans-Tasman Travel Arrangement introduced in 1973, Australian and New Zealand citizens are able to enter each other's country to visit, alive and work indefinitely, without the need to apply for prior authority. New Zealand is the only state in the world that has such an arrangement with Australia. There are no caps on the numbers of New Zealanders who may enter under the arrangement, and the simply limitations on entry chronicle to health and grapheme requirements.

This quick guide outlines the visa requirements and conditions for New Zealanders living in Commonwealth of australia, and provides an overview of the services to which they are entitled also as restrictions on entitlement to services. It too briefly compares this with the services to which Australians living in New Zealand are entitled. Finally, information technology summarises some of the arguments that have been made for expanding New Zealanders' access to services, and outlines a new pathway to citizenship for New Zealanders which has been recently announced.

The Special Category Visa

Since 1 September 1994, all non-citizens in Commonwealth of australia have been required to concord a valid visa. As a result, the Special Category Visa (SCV) was introduced specifically for New Zealand citizens. This visa is issued on arrival and there is no need to apply prior to inbound Australia. To obtain an SCV, a New Zealand citizen must present a valid New Zealand passport and an incoming passenger card to immigration officials upon arrival in Australia.

The SCV is classed as a temporary visa, and temporary visa holders practise not have the same rights and benefits every bit Australian citizens or permanent residents. To admission such rights, temporary migrants, including those from New Zealand, must obtain permanent visas. In contrast, on inbound New Zealand, all Australian citizens and permanent residents are automatically granted residence visas, and may utilise for permanent residence afterward having held a residence visa continuously for two years.

Prior to 2001, New Zealand citizens in Australia on SCVs could access social security and obtain Australian citizenship without first condign permanent residents. In Feb 2001, Commonwealth of australia entered into a new bilateral social security arrangement with New Zealand and amended citizenship laws for New Zealand citizens. Under these changes, all New Zealand citizens who arrived in Australia afterwards 26 Feb 2001 and who desire to access certain social security payments, obtain citizenship or sponsor family members for permanent residence may but do so afterwards applying for, and being granted, permanent residence through the migration programme.

Transitional arrangements were put in place for New Zealanders in Australia at the time of the amendments. This means that New Zealanders who were already in Australia as SCV holders on 26 Feb 2001 may go on to apply for citizenship, sponsor family members for permanent residence and access social security payments without being granted permanent visas.

What are New Zealanders in Australia entitled to?

Social security

Eligibility for Commonwealth of australia's social security system is based primarily on residency and financial means. It is a basic qualification or merits requirement for almost all pensions, allowances and benefits that persons must be Australian residents. To exist considered an Australian resident for social security purposes, a person must reside in Commonwealth of australia and exist: an Australian denizen; or the holder of a permanent visa; or an SCV holder who is considered a 'protected' SCV holder.

Protected SCV holders are those SCV holders who:

• were in Australia on 26 Feb 2001
• were in Australia as an SCV holder for a period of, or periods totalling, 12 months during the two years immediately before 26 February 2001
• commenced or recommenced residing in Australia within three months from 26 Feb 2001 or
• were residing in Australia on 26 Feb 2001 but were temporarily absent.

New Zealand citizens who accept arrived in Australia since 26 February 2001 on SCVs are considered 'non-protected SCV holders' and have restricted eligibility to social security benefits (see below).

For some social security payments there are additional residency-related requirements. For income support payments, such as pensions and allowances, a waiting period applies restricting access until persons accept been permanent residents in Australia for a certain number of years. Family assistance payments more often than not have no waiting period and are available to eligible permanent visa holders and SCV holders (protected and non-protected) immediately upon arrival in Australia.

Entitlements for protected Special Category Visa holders and permanent visa holders

New Zealand citizens who are protected SCV holders or holders of permanent visas have the same social security entitlements as other permanent residents. This means that they have the same eligibility equally Australian citizens, provided they accept served any applicable waiting period.

The 1 exception to this is the Job Commitment Bonus (JCB), which commenced on 1 July 2015 and is a lump sum payment paid to long-term Newstart Allowance and Youth Assart (Other) recipients who find gainful piece of work for periods of 12 months and 24 months. All New Zealand citizens, both protected and not-protected SCV holders, are excluded from the definition of 'Australian resident' for the purpose of assessing qualification for the JCB.

Entitlements for not-protected Special Category Visa holders

New Zealand citizens who are non-protected SCV holders (those who arrived after 26 February 2001) who intend to live in Australia permanently are only eligible for certain payments nether sure atmospheric condition.

Family assistance payments

Non-protected SCV holders are eligible for all family assistance payments nether the same conditions as Australian citizens. These payments include: Family unit Tax Do good (FTB) including FTB Part A, FTB Function B, the Newborn Supplement and Newborn Upfront Payment besides as the Energy Supplement; Child Care Benefit and Kid Care Rebate; Double Orphan Pension; and Parental Leave Pay (including Dad and Partner Pay).

If they are renting privately and receiving FTB, they may be eligible for Hire Assistance.

Allowance payments

Not-protected SCV holders are mostly ineligible for assart payments. Notwithstanding, those who arrived in Commonwealth of australia on New Zealand passports and have lived in Commonwealth of australia continuously for at to the lowest degree ten years since 26 February 2001 can access a once-only payment of Newstart Allowance, Sickness Allowance or Youth Allowance for a maximum continuous menses of six months. The half-dozen-month period does not start until whatever relevant waiting and/or preclusion/exclusion periods take been served. Transfer between payments is not permitted under this residence exemption. For example, a person in receipt of Newstart Assart by virtue of this exemption would not exist able to transfer to Sickness Allowance.

Where non-protected SCV holders movement on to permanent entry visas (for example, a spouse visa), they are considered nether the aforementioned conditions as citizens of other countries, which in general means they are subject field to the two-yr newly arrived migrant waiting period for allowance payments.

Pensions and Carer Payment

Under Australia'due south international social security understanding with New Zealand, New Zealand citizens living in Australia can apply for the Australian Age Pension (if over the age of 65), Disability Support Alimony (DSP) (if they are severely disabled) and Carer Payment (if they are caring for a partner on DSP), irrespective of whether they are protected or non-protected SCV holders. The residency requirements for the Historic period Alimony require a full period of time lived in Australia and/or periods of Working Age Residence (Working Age Residency refers to residency between the ages of twenty and 65) in New Zealand of more than ten years. For DSP, the person must have had at least ten years of residence in Australia or New Zealand, go severely disabled while living in Australia or New Zealand and resided in Australia for at least one year. For Carer Payment, an private must take lived in Australia and/or New Zealand for more than two years.

Reciprocal arrangements employ in relation to certain New Zealand payments (discussed below).

Disaster payments

Non-protected SCV holders are not generally eligible to receive the Australian Government Disaster Recovery Payment or the Disaster Recovery Assart. However, it has been the practise for ex-gratia payments to be made to New Zealanders for major disasters.

Health Care Cards and the Democracy Seniors Wellness Card

Not-protected SCV holders are entitled to a depression-income Health Care Carte du jour (HCC) if they have served a newly arrived resident's waiting period of two years and see the income test. The HCC provides access to discounted medicines under the Pharmaceutical Benefits Scheme (PBS) and access to concessions provided past state and territory governments and some private businesses. Non-protected SCV holders who are receiving the maximum rate of FTB Part A are automatically entitled to a HCC and do not demand to serve a waiting flow.

Non-protected SCV holders who are over age alimony age, not in receipt of pension payments and who accept served the newly arrived resident's waiting catamenia of two years, may authorize for a Democracy Seniors Wellness Card (CSHC). The CSHC provides access to discounted medicines under the Pharmaceutical Benefits Scheme (PBS), send and other concessions also equally the Energy Supplement payment worth $366.60 a year for singles and $275.sixty a year for each member of a couple (paid in quarterly instalments). An income test applies to the CSHC.

Health care

The Australian health system comprises both publically funded and privately funded wellness care. The public organization includes Medicare, public hospitals and the PBS, while the private system includes private hospital treatment and treatments not covered by Medicare, which can be covered through private health insurance. For more data, run into the Parliamentary Library publication Health in Australia: A Quick Guide.

Generally speaking, in order to be entitled to Medicare a person must be an Australian denizen or permanent resident. However, New Zealanders who are residing in Australia are too eligible for Medicare and can be issued with a Medicare menu upon presentation of documentation proving residence. Since New Zealand citizens who are lawfully residing in Australia are entitled to Medicare, they must also pay the Medicare levy and the Medicare levy surcharge (if their income is above the base of operations income threshold and they practise not have an appropriate level of private patient hospital cover).

Under Commonwealth of australia'south Reciprocal Health Care Agreement with New Zealand, New Zealand residents visiting Australia are too entitled to services as public patients in a public hospital for medically necessary treatment and prescription medicines which are subsidised under the PBS. They are also eligible for the Individual Health Insurance Rebate if they buy eligible health cover during their stay and meet the income exam.

National Disability Insurance Scheme

The National Disability Insurance Scheme (NDIS) provides individualised support for eligible people with permanent and significant inability, their families and carers, as well as associated referral services and activities. The NDIS commenced on 1 July 2013 offset with a trial phase known as the NDIS Launch. It is expected that by 2019, the NDIS volition exist fully implemented in all Australian states and territories.

The NDIS has similar residence requirements equally those applying to Australia'south social security organization. To access the NDIS, a person must be an Australian citizen, hold a permanent visa or be a protected SCV holder. This means that New Zealand citizens who arrived in Commonwealth of australia after 26 February 2001 may not access the NDIS.

The NDIS is partially funded through an increment in the Medicare levy from ane.5% to ii.0% of taxable income. Every bit noted in a higher place, New Zealanders residing in Australia are required to pay the Medicare levy. This has led to the complaint that while New Zealanders residing in Australia every bit non-protected SCV holders are responsible for partially funding the NDIS through the Medicare Levy, they are not entitled to access its services.

Education

School education

In Australia, schoolhouse education is funded by both federal and state and territory governments, but enrolment matters autumn nether the jurisdiction of state and territory governments. Government schooling is gratuitous for Australian citizens and permanent residents. New Zealand citizens are regarded equally local students and therefore entitled to complimentary public schooling in all states and territories (for example, encounter data on enrolment in government schools in the Australian Capital Territory and South Australia). New Zealand citizens are too eligible for Australian Government per student recurrent funding which is paid to both government and non-government schools.

Tertiary teaching

All New Zealand citizens are considered domestic students for the purpose of taking up Republic-supported places in universities. New Zealand citizens are likewise considered domestic students for the purposes of college degrees by research and therefore eligible for Australian Postgraduate Award scholarships. In the vocational education and training (VET) sector, New Zealand citizens accept admission to government-subsidised places in some states and territories.

College Education Loan Program (HELP)

Australian Authorities provides fiscal assistance to tertiary education students (university and VET) through the Higher Education Loan Program (Assist) and pupil income back up. Until recently, New Zealand citizens could not access Aid loans, as these were restricted to Australian citizens and permanent humanitarian visa holders. Nonetheless, from 1 January 2016, New Zealanders are now eligible providing they:

• hold a SVC
• outset entered Australia equally a dependent small aged under eighteen years of age
• accept been ordinarily resident in Commonwealth of australia for the previous ten years (that is, physically present in Australia for at least eight out of the by x years) and for 18 months of the last two years at the time of awarding and
• meet other Assistance eligibility criteria.

An interesting consequence of the new eligibility criteria is that New Zealand citizens may only admission HELP loans if they hold a SCV. If they concur any other blazon of visa (for instance a permanent skilled or family visa), they are no longer eligible for Aid. This means that New Zealanders who take up permanent residency every bit a ways of pursuing Australian citizenship go temporarily ineligible for HELP, merely become eligible once again once they become an Australian denizen.

Student income support

Protected SCV holders are able to access educatee income support payments, such as Youth Assart (YA) and Austudy, under the same conditions equally Australian citizens and permanent residents. Non-protected SCV holders who take resided in Australia for at least ten years since 26 Feb 2001 can qualify for a one-off YA payment for up to half dozen months if they come across other YA qualification requirements.

What are Australians in New Zealand entitled to?

Social security

Australians in New Zealand face fewer restrictions in relation to social security payments than do New Zealanders residing in Commonwealth of australia. More often than not, Australians residing ('ordinarily resident') in New Zealand have the aforementioned social security entitlements every bit New Zealand citizens, provided waiting periods (more often than not effectually two years) have expired.

The following are the main New Zealand social security benefits and the detail eligibility criteria relevant to Australian citizens:

• Jobseeker Back up (for sickness or unemployment): Australian citizens or one-time residents (including New Zealanders returning later on living in Australia) may be eligible for Jobseeker Back up, if they take been continuously resident in New Zealand for at to the lowest degree two years.
• Sole Parent Support (for singles aged 19 years or over with a dependent child in their care nether the age of fourteen): Australian citizens or former residents may exist eligible if they have been continuously resident in New Zealand for at to the lowest degree two years and if they fulfil other eligibility criteria.
• Supported Living Payment (for people with disability or their carers): Australian citizens or one-time residents (including New Zealanders returning after living in Australia) may exist eligible for a Supported Living Payment, if they take been continuously resident in New Zealand for at least 2 years and if they fulfil other eligibility criteria.
• New Zealand Superannuation (the equivalent of Commonwealth of australia'south Historic period Pension): Australian citizens or former residents (including New Zealanders returning after living in Australia) may be eligible for the New Zealand Superannuation if they meet eligibility criteria. Mostly, eligibility is based upon residency in New Zealand for not less than ten years since the age of 20, including v years or more than since the historic period of 50. Under the social security agreement between Commonwealth of australia and New Zealand, periods of residence in Australia may exist recognised for the purposes of eligibility for New Zealand Superannuation. Information technology is not income or assets tested, merely receipt of an Australian pension may affect payment rates.
• Emergency Do good may be provided to Australian citizens residing in New Zealand, if those citizens accept no other means of supporting themselves and are ineligible for another benefit.
• The Family Taxation Credit is payable to eligible recipients of the above payments and the same residency criteria employ. It is paid for each dependent child with the rate based on family income, the number of dependent children and the age of these children.

Reciprocal arrangements under the Australia-New Zealand social security agreement also apply to other New Zealand payments, including Veterans Alimony.

Wellness intendance

Admission to health intendance for Australians in New Zealand is generally equivalent to New Zealanders' entitlements in Australia. Under the Reciprocal Health Care Agreement (RHCA), Australian citizens and permanent residents temporarily in New Zealand may access necessary public hospital treatment, pharmaceuticals and motherhood services on the same terms every bit New Zealand citizens. Publicly funded wellness care beyond that provided for under the RHCA is available to Australians who are resident in New Zealand for two years or more, or who can demonstrate an intention to reside in New Zealand for two years or more.

Higher education

Australian citizens in New Zealand are classified as domestic students and exercise not crave student visas. Until recently, Australian citizens became eligible to utilise for third student allowances and student loans after a residency period of 2 years. The two-year waiting catamenia, referred to as a 'stand downwardly', was introduced in 2011. In its 2013 Upkeep, the New Zealand Government announced an increase in the stand downwards period from two to 3 years. The changes took effect on 1 January 2014.

Does Australia gain greater do good from the arrangement than New Zealand?

For many years, New Zealander advocacy groups have argued that the restrictions placed on post-2001 arrivals by the Australian Government are unfair. These groups take campaigned for better treatment for New Zealanders in Commonwealth of australia, arguing that Australians in New Zealand are entitled to a wider range of benefits than New Zealanders in Australia. They also argue that the restrictions on access to social security are unjust, every bit New Zealanders living and working in Commonwealth of australia pay income tax, just are unable to access many of the benefits paid for through the tax system.

In 2012, the Australian and New Zealand productivity commissions conducted articulation research to mark the 30th anniversary of the Closer Economical Understanding with New Zealand. It included an examination of the economic impact of trans-Tasman permanent migration. The report of this research, Strengthening Trans-Tasman Economic Relations (2012) showed that New Zealand loses a significant number of skilled migrants to Australia. Farther, in that location is an incentive for New Zealand nationals to return home after working in Australia and for retired Australians to go to New Zealand to alive, which places an additional burden on New Zealand's retirement income arrangement.

The commissions too acknowledged that there were:

... bug about access to public services and aid for New Zealand citizens who accept been in Commonwealth of australia for many years, many of whom have paid taxes for years. These mainly heart on long term resident non-Protected SCV holders and include: express pathways to Australian permanent residence and citizenship; no access to pupil loans for their children; and restricted admission to some social security payments and other supports.

The commissions noted that addressing these issues:

 ... would crave policy changes by the Australian Government, including:

• developing a pathway for New Zealand citizens living long term in Commonwealth of australia to achieve permanent residency and/or citizenship
• improving access for New Zealand citizens to tertiary education and vocational training through the provision of pupil loans, bailiwick to a waiting catamenia and appropriate debt recovery provisions
• (together with the New Zealand Government), reviewing, and making more explicit, the principles governing access to social security and further developing bilateral engagement on migration policies, within the context of CER [Closer Economical Relations], the single economic market and the Trans-Tasman Travel Organisation

Some progress has been made on these issues since the report'south publication. New Zealanders in Australia are at present able to access HELP student loans and the Australian Regime has recently announced a pathway to citizenship for some New Zealanders in Australia.

Recent developments

Revised social security agreement

In the 2016–17 Budget, the Australian Regime stated that it was negotiating with the New Zealand Government to amend elements of the current international social security agreement. The amendments are intended to reflect changes in the domestic legislation of both countries since the commencement of the agreement in 2002.

A pathway to citizenship

On 19 February 2016, Prime number Minster Malcolm Turnbull appear that Australia would provide a pathway to permanent residency, and eventually citizenship, for certain New Zealanders living in Australia, as of ane July 2017. This has been welcomed by the New Zealand Prime Minister John Key and by many New Zealanders in Australia.

The pathway volition exist implemented via the Skilled Independent category of the General Skilled Migration stream within the Migration program. It will non exist available to all New Zealanders residing in Australia, but only those who:

• take been resident in Australia for the five years immediately prior to visa application
• can demonstrate, through income tax returns (Discover of Assessment) for the catamenia of residence, taxable income at or above the Temporary Skilled Migration Income Threshold (TSMIT). This is the bacon threshold (currently set up at $53,900) applied to applicants for a subclass 457 worker to ensure the position they will fill is skilled and
• satisfy mandatory wellness, graphic symbol and security checks.

It will be available to New Zealanders who arrived in Commonwealth of australia afterwards 26 February 2001, only on or earlier the date of the proclamation, 19 Feb 2016. Thus, it is not a permanent arrangement for all New Zealanders who may come to Commonwealth of australia in the future, simply rather appears to exist a measure offering an outcome to those who are already in Australia and campaigning for improved rights. The Department of Immigration and Border Protection (DIBP) estimates that between 60,000 and 70,000 New Zealanders in Commonwealth of australia will meet the eligibility criteria.

While the pathway has been welcomed by many New Zealanders, information technology has been criticised by some commentators as being unnecessarily restrictive and discriminatory. Criticism largely focuses on the imposition of an income threshold, which volition operate to exclude New Zealanders working in low income jobs from accessing the pathway to permanent residency. Others who are likely to be excluded are those who work part-time, women who accept recently taken time out of the workforce to raise children, and retirees who, while they may have sufficient funds to support themselves, will not exist able to show a taxable income above the threshold for the last five financial years. According to DIBP, in that location will be express exemptions to the income examination for 'vulnerable' people, as determined by the Government minister for Immigration and the Minister for Social Services; nevertheless, no detail is bachelor at this stage on which categories of people might see the vulnerability examination.

For copyright reasons some linked items are only available to members of Parliament.

---

© Commonwealth of Australia

Creative Commons

With the exception of the Commonwealth Coat of Arms, and to the extent that copyright subsists in a tertiary party, this publication, its logo and front page design are licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Australia licence.

In essence, y'all are free to copy and communicate this work in its current form for all not-commercial purposes, every bit long every bit you attribute the work to the author and bide by the other licence terms. The work cannot be adapted or modified in any way. Content from this publication should be attributed in the following way: Author(s), Title of publication, Series Name and No, Publisher, Date.

To the extent that copyright subsists in third political party quotes it remains with the original owner and permission may be required to reuse the material.

Inquiries regarding the licence and any use of the publication are welcome to webmanager@aph.gov.au.

This piece of work has been prepared to support the work of the Australian Parliament using information available at the time of production. The views expressed do not reflect an official position of the Parliamentary Library, nor practice they constitute professional person legal opinion.

Whatever concerns or complaints should be directed to the Parliamentary Librarian. Parliamentary Library staff are available to talk over the contents of publications with Senators and Members and their staff. To admission this service, clients may contact the author or the Library's Central Enquiry Point for referral.

hillmexpeek.blogspot.com

Source: https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/rp1617/Quick_Guides/NZAust

Share this post