Retiring on Christmas Island: Visa, French Pension, Taxation, Healthcare and Isolation

Home Affairs indicates that the Retirement visa (subclass 410), designed for retirees who wish to spend part of their retirement in Australia, is not open to new applicants or to those applying for the first time; it remains reserved for spouses of holders and for former holders in specific cases. The pages read describe no Australian visa dedicated to foreign retirees that is still open.

For a short stay, the eligible French national applies for the eVisitor (subclass 651): three months at most on each entry over twelve months, with no possibility of working or extending the visa; beyond that, another visa is needed. Among permanent visas, the Parent visa (subclass 103) concerns the parents of a settled child who is an Australian citizen, permanent resident or eligible New Zealander; it allows an indefinite stay and enrolment in Medicare. Waiting times are long: Home Affairs specifies that demand exceeds the places available each year. Home Affairs should be consulted before any decision to leave.

Assurance retraite (the French pension insurance body) indicates that a retiree can continue to receive their French pension from their country of residence, provided they complete certain steps; the site offers sections for proving one’s existence, reporting a change of circumstances and changing postal details. France Diplomatie (the French foreign ministry) reminds us that there is no bilateral agreement between France and Australia in the field of social cover: the French pension and the Australian pension each come under their own rules.

Monthly payment requires a bank account and a valid contact address: plan a means of payment accessible from the island and check the banking services available on site before settling.

The convention concluded between France and Australia in Paris on 20 June 2006, published by the decree of 18 June 2009 and in force since 1 June 2009, defines in its article 3 the term “Australia” as excluding external territories, with the exception notably of the territory of Christmas Island: it therefore applies to a retiree settled on the island. Article 4 settles residence in the event of dual residence (permanent home, then centre of vital interests, then nationality). Article 17 provides that pensions and annuities paid to a resident are taxable only in their state of residence; article 18 deals separately with public remuneration and pensions. The text and tax advice should be consulted before fixing your residence.

Each state first applies its own tax residence criteria; the convention only decides in the event of dual residence. According to CLEISS (the French centre for European and international social security liaison), a retiree who is no longer a tax resident in France pays neither CSG, nor CRDS, nor Casa; a health insurance contribution, whose rates are set by regulation, is withheld from pensions as long as they depend on a French scheme. Australian tax rates and thresholds are published each year by the ATO and are not written here; the ATO has its own tax residence criteria, distinct from those of Home Affairs.

In a country with no agreement, Assurance Maladie reminds us that a retiree’s healthcare costs are no longer covered by the French scheme abroad. CLEISS indicates three routes: finding out about cover in the country of residence, joining the CFE voluntarily if you have French nationality, or taking out insurance with a private company. The CFE retirees’ plan is for retirees of a French Sécurité sociale scheme who receive a pension from that scheme and have no professional activity; it has no health questionnaire, with immediate cover if membership takes place before departure or within three months of settling, and covers only care received abroad.

Medicare is reserved for citizens, permanent residents (including those of Christmas Island) and certain categories of temporary visas; France has no reciprocal health agreement with Australia. For stays in France, a retiree of the general scheme registers with the Cnarefe, with a minimum of fifteen years of contributions; their spouse must join the CFE and take out private insurance (ameli). See the page healthcare reimbursement on Christmas Island and the guide retiree health insurance abroad.

Services Australia specifies that the Australian Age Pension requires, on the day of the claim, living in Australia, being physically present there and being an Australian resident: a citizen, a holder of a permanent visa or of a special category visa protected for New Zealanders. You generally must have been an Australian resident for ten years in total, at least five of them without interruption. Exceptions exist for claims under a social security agreement, which is not the case for France, for lack of an agreement. A retiree arriving on a temporary visa therefore cannot count on this pension.

The official sources read publish no cost of living, rents or property prices specific to the island: this information should be requested from the Shire of Christmas Island and from local employers or owners before any lasting plan. A preliminary visit, within the three months of the eVisitor, makes it possible to judge the supply of housing and products, which remoteness makes narrower than on the mainland.

The IOTHS lists among its services care for older people, including at home and in the community, and services for people with disabilities; it also offers public health programmes and visiting specialists.

The island health centre is small, with a few general inpatient beds and two emergency beds; specialists come in visits and serious cases are sent to Perth, with emergency medical evacuation (Department of Infrastructure). For a retiree with a chronic illness or declining independence, this criterion weighs more than the climate or the cost of housing.

A permanent return to France should be prepared: according to service-public.fr, a former CFE member may under conditions keep their benefits for three months, and a retiree depends on the convention between France and their former country of residence, which does not exist here; the application for Universal Health Protection is made to the CPAM (local health insurance office). See retirement insurance abroad and the page living on Christmas Island.

1. The right of residence: which Australian visa allows you to stay more than three months, and for how long? Home Affairs answers case by case.
2. Health cover: CFE membership (retirees’ plan) before departure or within three months of settling to avoid the waiting period, or private insurance including medical evacuation to Perth.
3. Stays in France: registration with the Cnarefe for a retiree of the general scheme, cover to arrange for the spouse.
4. Taxation: tax residence, taxation of the pension under the convention of 20 June 2006, advice from a tax adviser on both sides.
5. Long-term health: the island’s capacity of care in the face of a chronic illness or loss of independence, and a fallback solution in France or Perth.

To compare cover for a retiree abroad, see the page guide to the CFE.