10.4.6 Requirement to Claim a Benefit from Italy
Requirement to claim benefit from Italy
Article 17, paragraph 3 of the Agreement with Italy provides that if an Australian benefit is payable under the Agreement or autonomously, and there are reasonable grounds for believing that the claimant may also be eligible for an Italian benefit, the Australian claim may be determined as if the benefit from Italy was being paid. Italy can make the same assumption. This paragraph allows Australia to assess the 'assumed rate' of Italian benefit under the income test should the person refuse to apply for any outstanding Italian benefit.
In addition to this provision, all claimants for Australian benefits under the Agreement with Italy are required to take reasonable action to claim any entitlement from Italy under Australia's CFP legislation in 7.3.1.
Despite the presence of paragraph 3 in Article 17, it is still more appropriate to reject claims for Australian benefit where the claimant refuses to apply for any outstanding Italian benefit as this is in line with the CFP legislation.
Act reference: SS(IntAgree)Act Schedule 2 Italy
Policy reference: SS Guide 7.3.1 CFP legislation & requirements