The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

3.1.1.20 Residence in external territories

Residence in external territories

For the purposes of Age and DSP qualification, residence in an external territory (1.1.E.230) is taken to be residence in Australia.

This means that periods of residence in external territories count as periods of qualifying Australian residence (1.1.Q.15) for the 10-year residence requirement for Age and DSP. Residence in Australia is not interrupted by periods of residence in an external territory. If a person was absent from an external territory for short periods and these absences were only temporary, the absences do not interrupt continuous residence in an external territory.

It also means that if a person's continuing inability to work for DSP qualifying purposes occurred when the person was residing in an external territory, it is treated as having occurred in Australia. No prior period of residence in Australia is required for this to apply.

Note: Payment of WidB and BVA ceased from 20 March 2020. Prior to this, periods of residence in external territories also counted as periods of Australian residence for these payments.

For information on which territories are considered to be external territories for the purposes of social security law, see 1.1.E.230.

Note: Norfolk Island was previously considered an external territory. Since July 2016, it is considered part of Australia for social security purposes (see below).

Act reference: SSAct section 7(4) For the purposes of …, section 7(4AA) Whether residence in a particular place …, section 23-'Australia'

Claim lodgement in an external territory

Although residence in an external territory counts as qualifying Australian residence for Age and DSP, these pensions cannot be claimed by a person residing and/or present in an external territory. A person must be an Australian resident and in Australia on the date of claim to claim a pension (unless covered by a social security agreement). However, payments granted to an Australian resident in Australia can continue to be paid if the person goes to an external territory, subject to the portability rules for the payment.

Act reference: SS(Admin)Act section 29 Subject to sections 30, 30A, 31 and 31A, a claim …

Policy reference: SS Guide 8.1.6 Residence requirements

Residence in previous external territories

There have been a number of external territories of Australia that are no longer external territories. The following table lists the territory and the period during which they were considered to be an external territory.

Territory Dates
Papua 1 September 1906 to 16 September 1975
New Guinea 9 May 1921 to 16 September 1975
Nauru 17 December 1920 to 31 December 1968

Residence in these territories during the period when they were considered to be external territories of Australia counts as periods of qualifying Australian residence for Age and DSP (and previously WidB and BVA - see note above). Residence in these previous external territories cannot be used indiscriminately for any social security payment.

Example: A person:

  • was born in Australia on 1 March 1928
  • left Australia to reside in a non-external territory or non-agreement country on 1 March 1931
  • resided in Papua from 1 July 1953
  • returned to Australia to reside permanently on 1 February 1993, and
  • lodges a claim for Age on 1 March 1993.

This person is considered to have 25 years, 3 months and 16 days residence in Australia for Age. This is calculated as follows. This person therefore has 10 years qualifying residence for Age.

Place of residence Dates Australian residence
Australia 1 March 1928 to 28 February 1931 3 years
Non-external territory or non-agreement country 1 March 1931 to 30 June 1953 Not counted as Australian residence
Papua 1 July 1953 to 16 September 1975 22 years, 2 months, 16 days
Papua 16 September 1975 to 31 January 1993 Not counted as Australian residence
Australia 1 February 1993 to 1 March 1993 1 month
TOTAL RESIDENCE 25 years, 3 months, 16 days

Residence ONLY in an external territory

Residence in an external territory (or previous external territory) can be counted as qualifying Australian residence, even if the person has never previously resided in Australia.

Example: The following example shows how entitlement is affected in this case. A person:

  • was born in Papua on 1 March 1928
  • arrives in Australia for permanent residence on 1 March 1993, and
  • lodges a claim for Age on 10 March 1993.

This person is considered to have 47 years, 7 months and 16 days residence in Australia for Age. This is calculated as follows. This person therefore has 10 years qualifying residence for Age.

Place of residence Dates Australian residence
Papua 1 March 1928 to 16 September 1975 47 years, 6 months, 16 days
Papua 17 September 1975 to 28 February 1993 Not counted as Australian residence
Australia 1 March 1993 to 10 March 1993 10 days
TOTAL RESIDENCE 47 years, 6 months, 26 days

Norfolk Island

From 1 July 2016, Norfolk Island ceased to be an external territory and is now considered to be part of Australia for the purposes of social security law. As such, since 1 July 2016, any periods of residence in Norfolk Island (whether they occurred before or after 1 July 2016) are considered periods of residence in Australia for all payments and count towards qualifying residence requirements, NARWP (3.1.2.40) and AWLR (1.1.A.340) calculations.

Prior to 1 July 2016 when Norfolk Island was considered an external territory, periods of residence in the Territory of Norfolk Island did not interrupt the continuity of a person’s residence in Australia for the purposes of Age, DSP, WidB and BVA qualification. This means a period of residence in Norfolk Island could effectively be counted as a period of residence in Australia, provided it occurred between periods of actual Australian residence.

Example:

A person:

  • resides in Australia from 1 June 1964
  • left Australia to reside in the Territory of Norfolk Island on 1 July 1968
  • returned to Australia on 1 July 1970, and
  • left Australia to reside in the Territory of Norfolk Island on 1 July 1971 and never returns to Australia.

Before 1 July 2016, this person was considered to have 7 years and 1 month Australian residence. This is calculated as follows:

Place of residence Dates Australian residence
Australia 1 June 1964 to 30 June 1968 4 years, 1 month
Norfolk Island 1 July 1968 to 30 June 1970 2 years
Australia 1 July 1970 to 30 June 1971 1 year
TOTAL RESIDENCE 7 years, 1 month

Since 1 July 2016, this person is considered to have 58 years and one month Australian residence (as at 30 June 2022). This is calculated as follows.

Place of residence Dates Australian residence
Australia 1 June 1964 to 30 June 1968 4 years, 1 month
Norfolk Island 1 July 1968 to 30 June 1970 2 years
Australia 1 July 1970 to 30 June 1971 1 year
Norfolk Island 1 July 1971 to 30 June 2022 51 years
TOTAL RESIDENCE 58 years, 1 month

Act reference: SSAct section 3AA This Act extends to Norfolk Island, section 7(4) For the purposes of …, section 23-'Australia'

Norfolk Island Legislation Amendment Act 2015

Last reviewed: