10.5.8.50 Inside Australia Rate - Agreement with Canada
Inside Australia rate
The rate of Australian benefit payable under the Agreement to people residing inside Australia is calculated according to 10.1.9.60 Inside Australia Rate for Agreement Payments.
Article 7, paragraph 4 of the Agreement provides for this rate to then be compared to the rate that would be payable if the person was residing outside Australia. The person is then paid the higher of the 2 rates.
If the person in Australia is getting a proportional rate of Australian benefit, reviews must be noted for each 12 months after the first payment after the date on which the claim for pension was lodged.
The review is needed to recalculate the period of Australian working life residence used in the proportional calculation. Such pensioners will be accruing Australian working life residence each month, although paragraph 5 of Article 7 calls for adjustment to be made only on each successive anniversary of the date of lodgement.
Note: Age pensioners (and their carers) are not affected by this provision as their Australian working life residence remains the same for rate calculation purposes.
Act reference: SS(IntAgree)Act Schedule 4 Canada