Shows how little you know about Centrelink and pension rules!
Under Australian Centrelink legislation, if a person who has been a taxpayer in another overseas country (a country that has a Centrelink Agreement with Australia) - it is a requirement that those people who came from and worked in those countries apply for their overseas entitlement. The Australian Centrelink pension is reduced, thereby saving the Government (whichever party) a considerable amount of pension payouts from Australia.
By the way, some of these pensions remain the same for years and do not rise with CPI - so people do not become wealthy on this small amount. Also, Australian citizens who reside overseas can receive their entitlements in one of these particular countries as well.
Having private superannuation also reduces the amount of pension one receives, so that is also assisting Centrelink in reducing the Age Pension payments.
