10.23.8.20 Outside Australia Rate - Agreement with Greece

Outside Australia rate

Article 12 of the Agreement provides that the rate of Australian benefit paid under the Agreement to a person living outside Australia is calculated using the overall rate calculation process in SS(IntAgree)Act section 13.

This means that the person is paid a rate that is proportional to the amount of time they have lived in Australia during their working life (10.23.8.30).

Article 12, paragraph 1 provides that all Australian residents who return to live permanently in Greece after the Agreement starts, will have their pension rate calculated using the formula that applies to most of Australia's other agreements. It will be based on their WLR in Australia over a denominator of 25 years.

Article 12, paragraph 2 provides that people living in Greece who have ceased to be Australian residents when the Agreement starts will have their pension rate based on the proportion of their total WLR in Australia over a denominator of 44 years.

Article 12, paragraph 3, ensures that a person who is subject to the 44 year denominator cannot be paid under a 25 year denominator unless they re-establish residence in Australia for at least 2 years. If a resident of Greece who is paid under paragraph 2 again becomes an Australian resident, during the subsequent 2 years, their Agreement or autonomous pension would be portable only if they return to Greece, or travel temporarily to a third country. In both scenarios, their pension would be paid under the 44 year denominator from the day they left Australia unless the person was being paid a direct deduction rate inside Australia under paragraph 6. In this case, paragraph 7 provides that the direct deduction rate would continue for up to 26 weeks of a temporary absence from Australia. If the person departed permanently to a third country, their pension should be cancelled from the day of their departure.

There is no proportionalisation of income under the Agreement.

Act reference: SS(IntAgree)Act section 13 Overall calculation process

Temporary return to Australia

People paid under the Agreement who reside in Greece and travel to Australia temporarily will continue to have their rate calculated using the outside Australia rate for up to 26 weeks. Once they have been in Australia for more than 26 weeks, their rate will be calculated using the inside Australia rate in 10.23.8.40.

Centrelink will decide whether a person is a resident of Australia on the basis of the person's circumstances and SSAct section 7(2) and section 7(3).

Act reference: SS(IntAgree)Act Schedule 22 Hellenic Republic

SSAct section 7(2) and section 7(3) Australian residence definitions

Policy reference: SS Guide 10.1.9.20 Outside Australia Rate for Agreement Payments

Last reviewed: 20 March 2015