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. Exempt Payments - Agreement with Chile

Exempt payments

Article 17 of the Agreement exempts Chile's Mercy Payments (Pensiones de Gracia) from the Australian income test. This means that:

  • monthly payments made under Chilean Law number 19.123, and
  • periodical monthly mercy payments made under Chilean Law number 19.234,
  • payments made under Chilean Law number 19.992 (annual mercy pensions), and
  • any other payments of a similar character granted under laws made later than those listed above, and jointly approved in writing by the Competent Authorities,

are exempt from the income test that is applied to all payments under the social security laws of Australia. To date no other similar payments have been exempted.

Act reference: SS(IntAgree)Act Schedule 15 Chile

Policy reference: SS Guide Income from overseas payments - general rules

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