Coalboy:- Sorry to say it is not wrong. UK pensions have been paid for by the pensioners. It is theirs by the right that they paid the premiums as part of National Insurance contributions during their working life in the UK. It may either be a full pension or a part pension. It is recognised by the ATO, and an allowance applied for the cost. The remainder is added to the tax payers total income. If anyone is also getting a Centrelink pension, it is deducted from the Australian pension. Persons entitled to a UK pension can have it sent to any part of the world they reside.
The UK pension is frozen from the date of commencement for Australian residents and also in several other countries. In many countries the cost of living increases are applied, but not Australia.
Australia has a free pension system. It is Social Security.. After the age of 65 years and 6 months a man or woman can either stop work, or stop looking for work and receive the age pension, either full or partial, depending on their financial situation.
Not all UK pensioners receive an Australian pension. Getting a UK pension could keep certain persons off the Centrelink pension for longer, and thus be less of a burden on the Australian tax payer.
I hope I have clarified the situation for you.
