Australia and Portugal - Frequently Asked Questions
Note: the following information is provided as a guide only. People should contact Centrelink International Services on 131 673 for specific information relating to their circumstances.
List of Contents
When Did The Agreement Start?
What About People Who are Being Paid Under The Previous Agreement?
What Does The Agreement Do?
What Payments Does The Agreement Cover?
What Are the Main Features of the Agreement?
How Will seconded Workers Benefit Under the Agreement?
Where and How Are Claims For Social Security Benefits Made?
When Does Payment Start?
How Are Agreement Pensions and Benefits Paid?
What Documents Do I Need To Make a Claim?
What are the Important Things to Know About the Australian Social Security System?
How Much Australian Pension Will I Get If I Am Paid Under This Agreement?
Examples for Residents of Australia?
Examples for Residents of Portugal?
How Do I Find Out More?
WHEN DID THE AGREEMENT START?
The first Agreement with portugal commenced on 1 November 1992 (the 1992 Agreement). This Agreement has been updated and replaced with a new Agreement which commenced from 1 October 2002 (the 2002 Agreement).
WHAT ABOUT PEOPLE WHO ARE BEING PAID UNDER THE PREVIOUS AGREEMENT?
The 2002 Agreement contains provisions which protect people being paid under the 1992 Agreement. These people continue to be paid under the 2002 agreement while they remain qualified under the 1992 Agreement.
WHAT DOES THE AGREEMENT DO?
Under the Agreement Australia and Portugal share the responsibility for paying pensions to people who would otherwise not be entitled because they do not have sufficient residence in Australia or periods of contributions in Portugal. It also helps people who could not otherwise claim a pension because they are living abroard.
WHAT PAYMENTS DOES THE AGREEMENT COVER?
The social security payments covered by the Agreement are as follows:
Australia
- age pension;
- disability support pension for the severely disabled;
- wife pension (no new grants since 30 June 1995);
- carer payment for a person living in Portugal who is caring for a partner who receives Australian age pension or disability support pension;
- pensions payable to widows
- bereavement allowance;
- widow B pension (no new grants since 20 March 1997);
- parenting payment (single); and
- bereavement allowance;
- additional child amounts for pensioners with dependent children.
- old age pension;
- invalidity pension;
- survivor's pension.
WHAT ARE THE MAIN FEATURES OF THE AGREEMENT?
Australian legislation requires a person to have a minimum of 10 years Australian residence before they can claim age pension or disability support pension (this rule changes if the person becomes disabled after they take up permanent residence in Australia). It also requires the person to be an Australian resident and in Australia to claim a pension.
NB: Parenting payment (single) and bereavement allowance have different residency requirements to age pension and disability support pension.
The Centrelink website has information on residency requirements for payments covered by the Agreement.
Portuguese legislation requires minimum insurance periods to qualify for benefits.
Under the Agreement, periods of working life residence in Australia are treated as periods of insurance for Portugal. In the same way, Portuguese periods of insurance are treated by Australia as periods of residence in Australia.
These periods are added together to meet minimum periods required for the pensions offered by each country under the Agreement. These deemed periods do not affect the amount of pension paid.
A person who resides in Portugal is able to claim a pension from Australia without having to return to Australia for the purpose. Without the Agreement, the person must be residing in Australia to claim a pension.
To use the Agreement to claim an Australian pension while residing in Portugal, a person must have actually resided in Australia during their working life for a minimum of 12 months.
WHERE AND HOW ARE CLAIMS MADE?
People living in Australia can lodge claims for Portuguese and Australian pensions with any Centrelink Customer Service Centre. Centrelink will supply all the necessary claim forms.
People living in Portugal can lodge claims with any office of the National Pensions Centre.
HOW WILL SECONDED WORKERS BENEFIT UNDER THE AGREEMENT?
The Agreement contains provisions which mean that contributions do not have to be made into both country's systems for an employee seconded to work temporarily in the other country. The Australian Taxation Office is responsible for the administration of these provisions. Contact the ATO if you require more information on this aspect of the Agreement. The website address is www.ato.gov.au/super. Or you can telephone them on 131020
WHERE AND HOW ARE CLAIMS FOR SOCIAL SECURITY BENEFITS MADE?
In Australia
People living in Australia can lodge claims for Portuguese and Australian pension with any Centrelink Customer Service Centre. Centrelink will supply all necessary claim forms.
In Portugal
People living in Portugal can lodge claim forms with any office of the National Pensions Centre.
WHEN DOES PAYMENT START?
In Australia's case, payment starts from the date the claim is lodged, or, if a claim is lodged early, the date the person qualifies for payment. NB: Age pension claims can be lodged up to 3 months in advance of qualification.
HOW ARE AGREEMENT PENSIONS AND BENEFITS PAID?
When You Live in Australia
If you get a pension from Austriala, Centrelink will pay it directly into your bank account every two weeks.
If, however, you are living overseas, your pension will be paid directly into your bank account every four weeks.
Portugal pays its own pensions and benefits through the National Pensions Centre.
People who get a pension from both countries, will get two separate payments – one from Australia and one from Portugal.
WHAT DOCUMENTS DO I NEED TO MAKE A CLAIM?
Australian Benefits
When you claim an Austrlian pension you will need to complete a claim form and provide documents to prove your identity and periods of residence in Australia.
Proof of Identity
Some of the acceptable documents to prove your identity are:
- birth certificate or extract;
- current Australian passport;
- certificate of Australian citzenship.
Helpful documents that can assist you do this include:
- Australian or overseas passport that shows your date of arrival in Australia;
- entry visa;
- Australian citzenship papers;
- employment and/or tax records, including group certificates issued by Australian employers.
WHAT ARE THE IMPORTANT THINGS TO KNOW ABOUT THE AUSTRALIAN SOCIAL SECURITY SYSTEM?
All claimants for Australian Agreement pensions need to meet the other conditions (eg age limits, income and assets tests) required for that pension under Australia's social security laws.
Australian pensions are means-tested, that is, an income and assets test is applied. The pension rate is not effected by the income and assets test at the same time. Centrelink has information about the current income and assets test limits.
HOW MUCH AUSTRALIAN PENSION WILL I GET IF I AM PAID UNDER THIS AGREEMENT?
Australian pensions for people who are outside Australia are calculated differently to pensions for those who are inside Australia.
Australian pension for a person living in Australia
When a person living in Australia is granted a pension under the Agreement (because of lack of qualifying residence), the person receives the normal means-tested pension less the amount of any Portuguese benefit they also receive. The Portuguese benefit is 'topped up' to the rate of Australian pension they would get if they did not receive any Portuguese benefit.
Australian pension for a person not living in Australia
The rate of Australian pension payable outside Australia is affected by two things:
- length of Australian residence during working life; and
- the amount of income or assets in excess of specified limits.
For example, a person with 20 years working life residence would receive 20/25ths (or 80%) of the basic means-tested pension rate; a person with 12 years working life residence would receive 12/25ths (or 48%).
The income and assets test also apply, so that a person with 25 years of working life residence in Australia could still receive only a part pension if their income or assets exceeded the threshold limits. Centrelink has more information on the current income and assets limits.
When a pension is paid overseas at a proportional rate, the Agreement provides that the same proportion of any contributory Portuguese pension received is counted as income for the income test. This also applies to pensions granted without the assistance of the Agreement
Example 1
- Situation
Mr da Silva is aged 65 and has lived in Australia for 6 years. Before moving to Australia he lived in Portugal and paid contributions to the Portuguese social insurance system for 35 years. He now wishes to claim an Australian Pension.
Entitlement
- - Without the Agreement
- - With the Agreement
Also, Centrelink would assist him in claiming any Portuguese pension he may be entitled to.
- Situation
Mr Monteiro has lived in Australia for 2 years and is now 65 years old. He has also lived in Portugal for 4 years and contributed to the social insurance system while there. He wishes to claim an Australian age pension.
Entitlement
Mr Monteiro would not qualify for an Australian age pension because, even if he does add his periods of contributions in Portugal to his period of Australian residency, he still will not have at least 10 years of Australian residence he needs to qualify for an age pension.
Residents of Portugal
Following are some examples of how the Agreement assists people living in Portugal:
Example 1
- Situation
Mr da Costa is aged 65 and has lived in Australia for 20 years during his working life. He is now living in Portugal and is already receiving a Portuguese benefit. He left Australia before reaching Age Pension age.
Entitlement
- - Without the Agreement
- - With the Agreement
His rate of Australian pension would be proportionalised; 20/25ths of the basic means-tested rate would be paid. The same proportion of Portuguese pension (excluding any non-contributory benefits) would be counted as income.
The Portuguese National Pensions Centre would assist him in claiming an Australian pension.
- Situation
Mr Barrias is aged 65 living in Portugal. He has 16 years of contributions to the Portuguese social insurance system. He has also lived in Australia for 9 months.
Entitlement
- - Without the Agreement
- - With the Agreement
- Call Centrelink International Services on 131673, or
- visit your local Centrelink office
This page is current at 30 September 2002 and has been prepared by:
International Branch
Department of Family and Community Services
Canberra, Australia.