10.1.9.60 Inside Australia Rate for Agreement Payments
Agreements have an Article that sets out the method for calculating the rate of agreement pension payable to agreement pensioners inside Australia. This is normally a direct deduction rate and is described in the 4 steps below.
|1||Deduct all benefits (as defined) received from the agreement country from the maximum rate of Australian pension payable. The remaining amount becomes the maximum rate payable.|
|2||Calculate the rate payable under the income test using all other amounts of income (those not already directly deducted in Step 1) and the new maximum rate payable calculated in Step 1.|
|3||Calculate the rate payable under the assets test using the new maximum rate payable calculated in Step 1.|
|4||Compare the income test rate and the assets test rate and pay the lower of the 2.|
If an agreement allows for a comparison between the proportional rate and the direct deduction rate to be made for people inside Australia, compare the 2 rates and pay the higher of the 2.