10.31.8.20 Outside Australia Rate - Agreement with Latvia

Outside Australia rate

Article 12, paragraph 1 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. However no additional child amount is included.

This means that the person is paid a rate that is proportional to the duration of their Australian residence during their working life (10.31.8.30).

Former Australian residents living in Latvia will have their pension rate calculated based on their Australian working life residence over a denominator of 420 months (35 years).

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

Article 12, paragraph 2 provides that people paid under the Agreement who reside in Latvia and travel to Australia temporarily will continue to receive the proportional 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 10.31.8.40.

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

AWLR changes - 1 July 2014

People who are overseas immediately before 1 July 2014, receiving an affected payment, who return to Australia, on or after this date, will retain their 25 year AWLR, provided they do not remain in Australia for 26 weeks or more from their return date. If they return to Australia for 26 weeks or more, or they cease to qualify for that payment, they lose the 25 year AWLR saved status.

Act reference: SS(IntAgree)Act Schedule 30 Republic of Latvia

SSAct section 7(2) An Australian resident is a person who, section 7(3) In deciding for the purposes of this Act whether or not a person is residing in Australia…

Policy reference: SS Guide 10.1.9.20 Outside Australia Rate for Agreement Payments, 10.31.8.30 Australian Working Life Residence - Agreement with Latvia, 10.31.8.40 Inside Australia Rate - Agreement with Latvia

Last reviewed: 1 July 2014