10.22.7.40 Proportional Income - Agreement with Korea
Proportional income
The Agreement with Korea provides for proportionalisation of Korean benefits under the income test as in 10.1.9.40. This means that only a proportional amount of Korean old-age pension received by the person is assessed as income under the income test.
That proportion is calculated by multiplying the number of whole months accumulated by that person in a period of AWLR (not exceeding 300) by the amount of that benefit under the legislation of Korea and dividing that product by 300.
Korean income is only proportionalised while the rate of the Australian pension is also proportionalised.
Act reference: SS(IntAgree)Act Schedule 21 Republic of Korea
Policy reference: SS Guide 10.1.9.40 Calculating proportional income under Agreements, 10.22.7.10 Rate Calculation - Background (Agreement with Korea), 10.22.7.20 Outside Australia Rate - Agreement with Korea, 10.22.7.60 Lump Sum Refunds - Agreement with Korea