The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

10.1.9.60 Inside Australia Rate for Agreement Payments

Inside Australia

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.

Step Action
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.

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