10.2.8.30 Inside Australia - Agreement with New Zealand

Inside Australia rate

The rate of Australian benefit payable under the Agreement to a person present long term in Australia is calculated under the income test and the assets test, but disregarding any New Zealand benefit under the income test, and then directly deducting the New Zealand benefit from the rate otherwise payable.

This policy is intended to ensure a person in Australia cannot receive more in total from Australia and New Zealand, than a person who has lived their whole life in Australia.

Note: A New Zealand benefit is limited to the payments specified in Article 2 of the Agreement.

Third country pension

The rate of benefit payable under the Agreement to a person present long term in Australia who receives a pension from a third country depends on whether the person is a permanent resident. If the person is a permanent resident, then any third country pension is treated as ordinary income. If not, then any third country pension is disregarded as income and directly deducted, as for a New Zealand benefit mentioned above.

Temporary departure from Australia

People paid under the Agreement who are present long term in Australia and travel to New Zealand, but are not in New Zealand long term, will continue to have their rate calculated using the inside Australia rate as specified above for a period of 26 weeks or less. Once they have been outside Australia for more than 26 weeks, their rate will be calculated using the outside Australia rate in 10.2.8.40.

The same approach applies to temporary absences in third countries, subject to the relevant portability period in the social security law for the payment concerned.

People paid under the Agreement who reside in Australia and travel to New Zealand temporarily and intend remaining in New Zealand for more than 12 months, will have their rate calculated using the outside Australia rate as soon as they leave Australia.

Act reference: SS(IntAgree)Act Schedule 3 New Zealand

Last reviewed: 3 July 2017