This definition applies to the following payments:
- age pension
- wife pension
- widow B pension
- parenting payment (single), and
- disability support pension.
Totalisation is a process used to help people qualify for a pension under an international social security agreement (1.1.A.120) if they do not have enough residence (1.1.R.200), or contributions in the case of most agreement partners, to meet minimum conditions for payment. The process works by adding together the qualifying residence a person already has with qualifying social security periods under the system of the agreement country. Depending on the agreement, qualification could be met by adding:
- residence, AND/OR
Example: A 65 year old Australian resident with 8 years qualifying residence would meet the 10 year qualifying residence period for Age if they also had 2 years of contributions to any one of the Italian social security schemes covered by the Agreement with Italy. Similarly, a claimant for the Italian age pension could meet the 15 year minimum contribution requirement by adding 8 years AWLR (1.1.A.340) to 7 years of contributions.
Act reference: SSAct section 7(2) An Australian resident is a person …