10.1.9.80 Payments Exempt under Agreements
Exempt payments
Most of Australia's agreements allow for income tested welfare payments made by the other country to be disregarded from the income test. The chapter for each agreement must be checked before a payment is exempted from the income test.
It is very rare for a country to pay one of it's welfare payments to a person who is not living in that country. This is why this type of exemption will mostly apply to people living outside Australia. In some agreements this also includes autonomous pensioners who are in an agreement country or living overseas.
If it becomes apparent that a person is receiving one of these payments, then it is to be disregarded from the Australian income test.
Note: It is important to note that these payments may be assessable when the person's rate is calculated using the direct deduction rules.
Some agreement countries make payments towards the cost of personal care that are given income test concessions through the SSAct. These payments are not treated as income for people paid pensions regardless of whether the person's rate is calculated using an agreement. Payments exempt under the SSAct are listed at 4.3.2.30 Income exempt from assessment - legislated.