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Australian Government Department of Families, Housing, Community Services and Indigenous Affairs

International Involvement

Social Security Agreement between Australia and Malta

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.

Frequently Asked Questions


When did this Agreement start?

The current Agreement started on 1 July 2005. This replaced the original Agreement which started on 1 July 1991.

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What does this Agreement say?

The Agreement is a formal treaty. See the Agreement itself.


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What does the Agreement do?

The main purpose of the Agreement is assist people who move between Australia and Malta to get a pension from each country so that both Australia and Malta share the long-term social security coverage for that person. The Agreement: [ top ]

What payment does the Agreement cover?

The social security payments covered by the Agreement are as follow:


Australia:

Malta:

contributory pensions in respect of:Malta also pays non-contributory pensions and assistance under the Agreement but these are usually only paid in Malta.

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What are the main features of this Agreement?

To qualify for an Australian pension a person needs to have a minimum period of residence in Australia. For example, a person needs to have 10 years Australian residence to claim an Australian Age Pension. Australian legislation also requires a person to be an Australian resident and in Australia to claim a pension.


Under the Agreement, Maltese insurance periods (periods of contributions) are treated by Australia as periods of residence in Australia. The Agreement also permits a person who resides in Malta to claim a pension from Australia even though he or she may no longer be an Australian resident.

Maltese legislation requires minimum insurance periods to qualify for benefits. Under the Agreement, periods of working life residence in Australia are treated as insurance periods in Malta.

These deemed periods do not affect the amount of pension which is based only on the relevant periods in each country.

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Where and how are claims made?

People living in Australia can lodge claims for Maltese and Australian pensions with any Centrelink Customer Service Centre. Centrelink will supply all the necessary claim forms.


People living in Malta can lodge claims with any office of the Maltese Department of Social Security.

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When does the payment start?

In Australia's case, this is from the first day a person qualifies for payment after lodgement of a claim. Claims for Age Pension may be lodged up to 3 months in advance of reaching Age Pension age. If a person lodges their claim after they reach Age Pension age, then payment would generally not be backdated.


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How are the Agreement Pensions and Benefits Paid?

When You Live in Australia

Australian pensions are paid by Centrelink. Payments are usually made into a person's nominated bank account every two weeks.


Malta pays its own pensions and benefits through the Maltese Department of Social Security.

People who get a pension from both countries, will get two separate payments – one from Australia and one from Malta.

If you get a pension from Australia, 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.

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What documents do I need to make a claim?

To make a claim a person needs to complete a claim form and provide documents to show identity, date of birth, marriage etc. The most helpful documents are:[ top ]

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. For information about the current income and assets test limits, visit the Centrelink site.

The Age Pension age for men is 65. The Age Pension age for women is gradually being increased to 65 – see Age Pension benefit information for details of Age Pension ages for women.

Australian working life residence is the period of Australian residence between age 16 and Age Pension age.

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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 Maltese benefit they also receive.

The Maltese benefit is 'topped up' to the rate of Australian pension they would get if they did not receive any Maltese benefit.

Once a person qualifies for an Australian pension in his or her own right (without needing the Agreement) any Maltese benefit is treated as income in the normal way.

Australian pension for a person not living in Australia

The rate of Australian pension payable outside Australia is affected by two things:Australian pensions paid overseas are paid at a proportional rate reflecting the person's working life residence in Australia. A person with 25 years residence during 'working life' (between 16 and Age Pension age) can be paid a full basic means-tested pension. A person with less than 25 years Australian working life residence, has his or her rate worked out on a proportional basis.

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. For more information about the current income and assets limits, visit the Centrelink Website.

Under the Agreement, when a pension is paid overseas at a proportional rate, only the same proportion of any contributory Maltese pension received is counted as income for the income test. This also applies to pensions granted without the assistance of the Agreement.

Non-contributory Maltese pensions (generally only paid in Malta) are disregarded totally from the Australian income test.

Visitng or Departing Australia Temporarily

This agreement contains provisions that maintain the rate of Australian pension paid to people when they visit or depart Australia temporarily for up to 26 weeks. The rate will no longer change immediately a person visits or departs Australia, as happened under the previous agreement, but instead will remain consistent for the first 26 weeks of any temporary visit or departure.

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Examples

Residents of Australia

Following are some examples of how the Agreement assists people living in Australia:

Example 1

Situation
Mr Sammut is aged 65 and has lived in Australia for 6 years. Before moving to Australia he lived in Malta and paid contributions to the Maltese social insurance system for 35 years. He now wishes to claim an Australian Pension.

Entitlement
Without the Agreement
He cannot get an Australian Age Pension because he has not lived in Australia for more than 10 years.

With the Agreement
Mr Sammut can add his 6 years as an Australian resident to his 35 years of contributions in Malta so that he meets the minimum 10 years Australian residence required to qualify for an Australian Age Pension.

Also, Centrelink would assist him in claiming any Maltese pension he may be entitled to.



Example 2

Situation
Mr Muscat has lived in Australia for 2 years and is now 65 years old. He has also lived in Malta for 4 years and contributed to the social insurance system while there. He wishes to claim an Australian age pension.

Entitlement
Mr Muscat would not qualify for an Australian age pension because, even if he does add his periods of contributions in Malta 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.


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Examples

Residents of Malta

Following are some examples of how the Agreement assists people living in Malta:

Example 1

Situation
Mr Borg is aged 65 and has lived in Australia for 20 years during his working life. He is now living in Malta and is already receiving a Maltese benefit. He left Australia before reaching Age Pension age.

Entitlement
Without the Agreement
Although he has more than 10 years required for Australian Age Pension, he would not qualify for payment as he is not an Australian resident and in Australia.

With the Agreement
The Agreement's lodgement provisions allow Mr Borg to claim an Australian pension even though he is a resident of Malta.

His rate of Australian pension would be proportionalised; 20/25ths of the basic means-tested rate would be paid. The same proportion of Maltese pension (excluding any non-contributory benefits) would be counted as income.

The Maltese Department of Social Security would assist him in claiming an Australian pension.



Example 2

Situation
Mr Grech is aged 65 living in Malta. He has 16 years of contributions to the Maltese social insurance system. He has also lived in Australia for 9 months.

Entitlement
Without the Agreement
Mr Grech would be entitled to a Maltese pension only. No Australian pension could be paid because he is not an Australian resident and in Australia.

With the Agreement
No change. Mr Grech would still receive a Maltese pension, but would not be entitled to an Australian pension because under the Agreement the minimum period of Australian working life residence is one year (of which at least six months must be continuous).


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How do I find out more?


International Branch
Department of Family and Community Services
Canberra, Australia.

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