10.24.7.20 Outside Australia Rate - Agreement with Japan

Outside Australia rate

Article 16 of the Agreement provides that the rate of Australian benefit paid under the Agreement to a person outside Australia is calculated according to Australian legislation (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 (10.24.7.30).

Former Australian residents living in Japan will have their pension rate calculated based on their working life residence in Australia over a denominator of 35 years.

Example: Mr Yamashita has 13 years of AWLR. The amount of Age he will receive will be 13/35ths of his means-tested Australian age pension.

Note: Generally people granted under the Agreement before 1 July 2014 will continue to be paid based on a denominator of 25 years.

The ceiling rate discussed in 10.1.9.20 applies to people being paid under this Agreement.

Temporary return to Australia

People paid under the Agreement who reside in Japan 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 10.24.7.50.

Act reference: SS(IntAgree)Act Schedule 23 Japan

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

Last reviewed: 1 July 2014