10.27.8.20 Outside Australia rate - Agreement with the Republic of North Macedonia

Outside Australia rate

Article 12 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.

This means that the person is paid a rate that is proportional to the duration of their Australian residence during their working life (10.27.8.30).

Article 12, paragraph 2, provides that people living in the Republic of North Macedonia who had ceased to be Australian residents before the Agreement commenced, will have their pension rate based on the proportion of their AWLR over a denominator of 528 months (44 years).

Article 12, paragraph 3, provides that Macedonian residents who are subject to the 528 month denominator who re-establish residency in Australia, would revert to a 420 month (35 year) denominator only if they remain as Australian residents for at least 2 years.

Article 12, paragraph 1, when read with social security law, provides that if a person moves to the Republic of North Macedonia after the Agreement has commenced, their pension rate is calculated using 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

People paid under the Agreement who reside in the Republic of North Macedonia 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 10.27.8.40.

Centrelink will decide whether a person is a resident of Australia on the basis of the person's circumstances in accordance with SSAct subsections 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.